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3 years ago

Type the correct answer in the box. Spell all words correctly.

Business

1 answer:

notka56 [123]3 years ago

8 0

Answer:

Doubtful

Explanation:

The company will record the uncollectible $5,670 of its accounts receivable as a debit to uncollectible accounts expense and a credit to the DOUBTFUL account.

This is evident in the fact that the bad debt allowance method has three main principles which are:

1. Calculate uncollectible receivables

2. Debit bad debt expense and credit allowance for doubtful accounts in the journal entry

3. Debit allowance for doubtful accounts and credit the corresponding receivables account when it is time to write off the account.

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Profit is only a liability for the business. Can you justify this?

lara31 [8.8K]

Answer:

A growing company may not be earning any profits yet, but may nevertheless provide a great investment opportunity.

Other times, a lack of profitability can be a huge red flag that something is wrong with the firm.

Explanation:

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3 years ago

Individuals with the primary responsibility for administering the systems that house the information used by the organization pe

Angelina_Jolie [31]

Answer:

"System administrators" is the right approach.

Explanation:

The system administrator seems to be an entity that maintains or operates a multi-standard technology environment and ensuring that Its resources and operating structures operate consistently and optimally.
It has been used throughout the broad organization to identify each administrator concerned for such a specialized IT system, including one which services servers.

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4 years ago

On June 15, Harper purchased equipment for $100,000 from Imperial Corp. and signed for the goods as President of the company. He

Ivenika [448]

Full question:

On June 15, Harper purchased equipment for $100,000 from Imperial Corp. for use in its manufacturing process. Harper paid for the equipment with funds borrowed from Eastern Bank. Harper gave Eastern a security agreement and financing statement covering Harper’s existing and after-acquired equipment. On June 21, Harper was petitioned involuntarily into bankruptcy under Chapter 7 of the Federal Bankruptcy Code. A bankruptcy trustee was appointed. On June 23, Eastern filed the financing statement. Which of the parties will have a superior security interest in the equipment?

A. The trustee in bankruptcy, because the filing of the financing statement after the commencement of the bankruptcy case would be deemed a preferential transfer.

B. The trustee in bankruptcy, because the trustee became a lien creditor before Eastern perfected its security interest.

C. Eastern, because it had a perfected purchase money security interest without having to file a financing statement.

D. Eastern, because it perfected its security interest within the permissible time limits.

Answer:

Eastern parties will have a superior security interest in the equipment because it perfected its security interest within the permissible time limits.

Explanation:

Eastern has a higher security interest because Eastern amended its security interest inside the allowable time deadlines. A perfected security interest in any security interest in an asset that cannot be demanded by any other party.

Below the Uniform Commercial Code (U.C.C.), to perfect a security interest, a lender has 10 days from the date of the sale of material to perfect the security interest by filing a financing statement. Possessing registered in the 10-day limit, Eastern has a strong perfected security interest in the material and after-acquired things even though the bankruptcy was recorded two days ahead.

6 0

3 years ago

Mills Corporation acquired as a long-term investment $200 million of 7% bonds, dated July 1, on July 1, 2018. Company management

Evgen [1.6K]

Answer:

investment on bonds 200 millions

premium on bonds 40 millions

cash 240 millions

to record the purchase of bonds

cash 7 millions

interest revenue 6 millions

premium on bonds 1 million

interest proceeds of december 31th

Balance sheet:

bonds 200

premium 39

net 239

cash 250 millions

investment on bonds 200 millions

premium on bonds 39 millions

gain on sale of invesment 11 millions

to record the sale of bonds

Explanation:

recording the bonds:

acquisition 240

bonds face value (200)

premium 40

It is a premium, as the bonds where purchased at higher price than face value

Interest at December 31th

To calculate the interest, we will calcualte the interest per payment:

7% annual coupon rate /2 payment per year = 3.5% semi-annual rate

5% market rate /2 payment per year = 2.5% semi-annual market rate

cash proceeds: 200 x 3.5% = 7

interest revenue:

carrying value x market rate

240 x 2.5% = 6

amortization 7 - 6 = 1

Value in the balance sheet:

the net value of the bond will be the face value plus the carrying value of the premium

Sale of the bonds:

selling price 250

carrying value of the bonds (239)

gain on sale of bonds 1 1

It is a gain, as the bonds are being sold at a higher price than his carrying value.

7 0

3 years ago

Equipment with a cost of $225,000 has an estimated salvage value of $15,000 and an estimated life of 4 years or 10,000 hours. It

elixir [45]

Answer:

The depreciation is $52,500

Explanation:

The formula to compute the depreciation under the straight-line method is shown below:

= $\dfrac{(original\ cost - salvage\ value )}{Number\ of\ years}$

= $\dfrac{(\$225,000 - \$15,000)}{4\years}$

= $52,500

Under the straight-line method, the depreciation expense should be the same for the remaining useful life. Life of the equipment or machine should always be expressed in years, not in hours.

So, these usage of hours should be ignored.

4 0

3 years ago