Answer: The amount the company would report as its net accounts receivable at 31 December 2017 is $801,000.
Explanation: Net accounts receivable is the recoverable amount of receivable after considering the amount that is deemed to be uncollectible. It is accounts receivable balance minus the allowance for doubtful accounts.
In the instance of this question, the net accounts receivable was initially $801,000 ($870,000 - $69,000). Now that management approved a write-off of $17,000, the implication is that the write-off would hit allowance for doubtful account (since there is a buffer in that account instead of bad debt expense), and the necessary accounting entries to be recorded would be: <em>Debit Allowance for doubtful accounts $17,000; Credit Accounts Receivable $17,000. </em>With these entries, both accounts receivable and the allowance for doubtful accounts would be reduced by the same account. Consequently, the net accounts receivable remains the same but the individual balances in accounts receivable and allowance for doubtful account would now be $853,000 ($870,000 - $17,000) and $52,000 ($69,000 - $17,000).
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
The average show sells 900 tickets at $ 65 per ticket. The average show has a cast of 55, each earning a net average of $ 330 per show. The cast is paid after each show. The other variable cost is a program-printing cost of $ 9 per guest. Annual fixed costs total $580,500.
Unitary variable cost= 55*$330 + $9*900= $26,250
Unitary fixed costs= 580,550/115 shows= $5,048
Income statement:
Sales= 900*65= $58,500
Unitary variable cost= (26,250)
Contribution margin= $32,250
Unitary Fixed costs= 5,048
Operating income= $27,202
Answer:
E-commerce sites are able to keep the amount of data entry errors to a minimum by having the buyers enter products information themselves
Explanation:
E-commerce sites are platforms where buyers and sellers meet on the internet to carryout transactions.
Entry errors are as a result of wrong information inputted when documenting information. In most E-commerce sites entry of items purchase is done by the buyers to reduce the chances of entry errors.
Answer:
b.$13,000
Explanation:
The investment is made using post-tax funds. Therefore, only the earnings made on the investment ($38,000-$25,000=$13,000) is subject to taxation. IRS applies the exclusion ratio to determine what portion of a non-qualified annuity withdrawal is taxable.