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galben [10]
3 years ago
13

An aging of a company's accounts receivable indicates that $4,000 are estimated to be uncollectible. If Allowance for Doubtful A

ccounts has a $1,200 credit balance, the adjustment to record bad debts for the period will require a
Business
1 answer:
german3 years ago
8 0

Answer:the adjustment to record bad debts for the period will require a debit of $3,800 on  Bad Debts Expense account and  a credit of $3,800  on Accounts Receivable account.

Explanation:

Account receivables = $4,000 uncollectible

Allowance for Doubtful Accounts =$1,200 credit balance

Adjustment to record bad debts =Account receivables-$1,200 credit balance

= $4,000 - $1,200

=$3,800

The  adjustment journal entry to record the bad debts for the period will require

Accounts                               Debit                 Credit

Bad debt expense              $3,800

Accounts receivables                                       $3,800  

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Assume Purity Ice Cream Company, Inc., in Ithaca, NY, bought a new ice cream maker at the beginning of the year at a cost of $9,
olga_2 [115]

Answer:

Purity Ice Cream Company

a. Depreciation Schedule, using straight-line method:

                    Cost       Depreciation    Accumulated     Net Book

                                      Expense        Depreciation    Value

Year 1         $9,000         $2,000            $2,000           $7,000

Year 2        $9,000         $2,000              4,000              5,000

Year 3        $9,000         $2,000              6,000              3,000

Year 4        $9,000         $2,000              8,000               1,000

b. Depreciation Schedule, using unit of production method:

                    Cost       Depreciation    Accumulated     Net Book

                                      Expense        Depreciation    Value

Year 1         $9,000         $2,750            $2,750           $6,250

Year 2        $9,000         $1,900              4,650              4,350

Year 3        $9,000         $1,600              6,250              2,750

Year 4        $9,000         $1,750              8,000               1,000  

Explanation:

a) Data and Calculations:

Cost of ice cream maker = $9,000

Estimated useful life = 4 years

Residual value = $1,000

Depreciable amount = $8,000 ($9,000 - $1,000)

Annual depreciation (Straight-line method) = $2,000 ($8,000/4)

Estimated productive life the machine = 16,000 hours

Annual usage:              Depreciation Expense

Year 1  5,500 hours          $2,750

Year 2  3,800 hours           1,900

Year 3  3,200 hours           1,600

Year 4 3,500 hours            1,750

Total  16,000 hours         $8,000

Depreciation rate per hour = $0.50 ($8,000/16,000)

                                                         

4 0
2 years ago
If $1,000 was deposited today at a rate of 15%, its future value in one year would be
aleksley [76]

Answer:

$1,150.

Explanation:

First, we find what that 15% is by setting an equation:

\frac{15}{100} \times \frac{1000}{1}

This gives us: $150

Now, we just add that to the deposited money.

$1000 + $150 = $1,150

Hope this helps!

6 0
2 years ago
The efficiency gains resulting from a just-in-time inventory management system will allow a firm to reduce its level of inventor
Lisa [10]

The  most the firm should be willing to pay for installing the system is $444,000.

<h3>What is  just-in-time inventory management?</h3>

just-in-time inventory management is an inventory management system  and can be defined as the process in which companies have inventory at hand so as to have inventory to fall back to  in case the company want to urgently make use of inventory.

Hence, the most the firm should be willing to pay for installing the system is $444,000 since the company want  to reduce the level of inventories permanently by $444,000.

Learn  more about just-in-time inventory management here:brainly.com/question/8842151

#SPJ1

6 0
1 year ago
The economizing problem is essentially one of deciding how to make the best use of a. limited resources to satisfy limited wants
elixir [45]

Answer: Option (C) is correct.

Explanation:

In economics, this is a fundamental problem that how to utilize the limited resources to satisfy unlimited wants. There are three things that are interrelated with each other:

(1) Limited resources

(2) Scarcity of goods and services

(3) Unlimited wants

We know that human wants are unlimited and resources are limited, then there is a problem of scarcity arises. Many economists call this as "economizing problem". So, economizing problem is all about making choices from scarce resources.

6 0
3 years ago
Patterson Corporation began the year with retained earnings of $325,000. During the year, the company issued $500,000 of common
Vanyuwa [196]

Answer:

The company's revenue for the year is <u>$1,615,000</u>.

The correct option is  <u>A. $1,615,000</u>.

Explanation:

Given:

Patterson Corporation began the year with retained earnings of $325,000. During the year, the company issued $500,000 of common stock, recorded expenses of $1,500,000, and paid dividends of $90,000.

If Patterson’s ending retained earnings was $350,000.

Now, to find the company's revenue for the year.

Opening Retained earnings = $325,000.

Common stock = $500,000.

Recorded expenses = $1,500,000.

Paid dividends = $90,000.

Closing Retained earnings = $350,000.

Now, to get the revenue of the company we put formula:

<u><em>Revenue = (Recorded expenses + paid dividends + closing Retained earnings) - opening Retained earnings</em></u>

Revenue=(1500,000+90,000+350,000)-325,000

Revenue=1940000-325000

Revenue=1615,000.

Therefore, the company's revenue for the year is $1,615,000.

The correct option is  A. $1,615,000.

4 0
3 years ago
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