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olga nikolaevna [1]
3 years ago
12

At the end of the current year, Accounts Receivable has a balance of $675,000; Allowance for Doubtful Accounts has a debit balan

ce of $5,400; and sales for the year total $3,000,000. An analysis of receivables indicates the uncollectible receivables are estimated to be $45,000. a. Determine the amount of the adjusting entry for bad debt expense. $fill in the blank 1 b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Adjusted Balance Accounts Receivable $fill in the blank 2 Allowance for Doubtful Accounts fill in the blank 3 Bad Debt Expense fill in the blank 4 c. Determine the net realizable value of accounts receivable. $fill in the blank 5
Business
1 answer:
melomori [17]3 years ago
4 0

Answer:

a) The amount of the adjusting entry for bad debt expense = $50,400.

b) The adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense are:

1. Adjusted Balance Accounts Receivable = $675,000

2. Allowance for Doubtful Accounts = $45,000

3. Bad Debt Expense = $50,400

c. Determine the net realizable value of accounts receivable = $630,000

Explanation:

A) Data and Calculations:

Accounts Receivable balance = $675,000

Allowance for Doubtful Accounts = $5,400 (debit)

Sales for the year = $3,000,000

Estimated uncollectible receivables = $45,000

Amount of adjustment for bad debt expense = $50,400 ($45,000 + $5,400)

b) The net realizable value of accounts receivable is determined by subtracting the amount of the Allowance for Doubtful Accounts ($45,000) from the balance of Accounts Receivable ($675,000).  This results to a realizable value of $630,000 ($675,000 - $45,000).

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The global technology company Motorola received negative publicity related to allegations that its workforce at a ________ plant
allsm [11]

Answer:

The correct answer is Contract manufacturing.

Explanation:

Contract manufacturing is a business model in which a company approaches a manufacturer with a design and requests a contract to produce a certain number of units at a cost. The cost of the contract manufacturer is based on work, material costs and the difficulty of the process, while the company focuses on design, marketing and sales. In general, the companies they hire will request quotes from several manufacturers per contract in a bidding process before finally choosing one.

3 0
3 years ago
The purpose of the debt covenant that requires maintaining a minimum level of net working capital is to ________.A) protect the
erma4kov [3.2K]

Answer:

Answer is option C i.e. ensure a cash shortage does not cause an inability to meet current obligations.

Explanation:

Debt covenants can be understood as an agreement between the lenders and the borrower. There are certain terms that are to be considered by the parties of the agreement. One such term is the maintenance of a minimum level of net working capital so that when a company/organization that has borrowed the money runs bankrupt can meet its obligation to pay back the required amount to the lender on time. Therefore, maintenance of a minimum level of net working capital is to ensure that the cash shortage does not cause an inability to meet current obligations.

7 0
3 years ago
Slapshot Company makes ice hockey sticks. Last week, direct materials (wood, paint, Kevlar, and resin) costing $28,000 were put
elena55 [62]

Answer:

Part 1. Calculate the total prime cost for last week

Direct materials                    28,000

<u><em>Add </em></u>Direct labor                   28,000

Prime Cost                             56,000

Part 2. Calculate the per-unit prime cost

per-unit prime cost=$56,000/5,600

                                 =$10.00

Part 3. Calculate the total conversion cost for last week

Direct labor                                 28,000

<u>Add </u>Manufacturing Overheads 55,000

Total conversion cost                83,000

Part 4. Calculate the per-unit conversion cost.

per-unit conversion cost=$83,000/5,600

                                         =$14.82

Explanation:

Part 1. Calculate the total prime cost for last week

Prime Cost = Direct Materials + Direct Labor

Part 2. Calculate the per-unit prime cost

Per Unit Prime Cost = total prime cost/number of units manufactured

Part 3. Calculate the total conversion cost for last week

Conversion Cost = Direct Labor + Manufacturing Overheads

Part 4. Calculate the per-unit conversion cost.

Per-unit conversion cost =Total Conversion Cost / number of units manufactured

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3 years ago
Briefly explain how the government uses taxation as a redistribution method
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Answer:

The purpose of this is to increase economic stability.

8 0
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Mr. Gupta is also considering giving his employees a raise that would increase total salaries by $35,000.00 per year. What effec
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I think the taxes would decrease but increase for the company
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