All categories

3 years ago

Scenario #1

1 answer:

3 0

I will use a debit card because my parents add my allowance to my checking account. Other possible payment decisions I can make are to use a check.

You might be interested in

Consumers should be concerned about high interest rates because high interest rates __________.

svlad2 [7]

Consumers should be concerned about high interest rates because high interest rates equals to higher interest/ more money that needs to be paid.

4 0

4 years ago

What is the output of a mosquito repellent product?

Kay [80]

The output of mosquito reppelent is a toxin that is harmful to mosquitos

8 0

3 years ago

Read 2 more answers

AAA's inventory turnover ratio is 20.00 based on sales of $28,400,000. The firm's current ratio equals 4.16 with current liabili

marissa [1.9K]

Answer:

= 17.15 days (approx)

Explanation:

Given:

inventory turnover ratio = 20

Current ratio = 4.16

Current liabilities = $820,000.

Cash and Marketable securities = $657,096

Net sales = $28,400,000

Per day sale = ?

Calculation:

Current ratio = Current assets / current Liabilities

4.16 = Current assets / $820,000

4.16 x $820,000 = Current assets

$3,411,200 = Current assets

Inventory turnover ratio = Net sales / Average Inventory

20 = $28,400,000 / Inventory

$28,400,000 / 20 = Inventory

$1,420,000 = Inventory

Average Receivable = current assets - Cash and Marketable securities -Inventories

= $3,411,200 - $657,096 - $1,420,000

Average Receivable = $1,334,104

Outstanding daily sales = (Average receivables / Net sales )Number of days in a year

= $1,334,104 / $28,400,000)365

= 17.15 days (approx)

4 0

3 years ago

Reporting Uncollectible Accounts and Accounts Receivable

hjlf

Solution :

Account Estimated Estimated

receivable loss% bad debts

Current 250,000 0.5 1250

1-30 days of past due 90,000 1.0 900

31-60 days of past due 20,000 2.0 400

61-120 days of past due 11,000 5.0 550

121-180 days of past due 6,000 10.0 600

Over 180 days of past due 4,000 25.0 1000

Total account receivable 381,000 4700

a). The amount for the bad debts expense is = 4700 - (4350 - 3830)

= 4180

b). Balance in the accounts receivable

Accounts receivable = 381,000

Less : allowance for bad debts = - 4180

Net realizable value of the accounts receivable = 376,820

c). Bad debts expense

a). 4180

Balance: 4180

The allowance for un-collectible account

Beg. Bal : 4350

write off : 3830

a). 4180

Balance 4700

6 0

3 years ago

The Coffee Cup Company had a credit balance of $500 in interest payable at the beginning of the period, and a credit balance of

Klio2033 [76]

Answer:

The adjustment to net income for the period will be reported as:

Debit Interest expense ($600 - $500) $100

Credit Interest payable $100

<em>(Being interest expense for the period)</em>

Explanation:

Interest payable is the accumulation of the interest expense in the balance sheet overa specific period of time agreed with the creditor. When it becomes payable, the interest payable account is debited while cash is credited.

The interest payable in the Coffee Cup Company's account increased from $500 (credit balance) to $600 credit balance. This means there would have been an additional $100 interest expense recorded during the period in order to increase it to $600.

4 0

4 years ago