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Savatey [412]
3 years ago
9

An aging of a company's accounts receivable indicates that $8400 are estimated to be uncollectible. If Allowance for Doubtful Ac

counts has a $3800 credit balance, the adjustment to record bad debts for the period will require a:_____.
1. debit to Bad Debts Expense for $1,800.
2. debit to Bad Debt Expense for $2,200.
3. credit to Allowance for Doubtful Accounts for $3,000.
4. debit to Bad Debts Expense for $2,000.
Business
1 answer:
Trava [24]3 years ago
8 0

Answer:

Debit to Bad Debts Expense for $4,600

Explanation:

Based on the information given we were told that the company's accounts receivable shows the amount of $8400 which was estimated to be uncollectible which means that If Allowance for Doubtful Accounts has the amount of $3800 as credit balance, the adjustment to record bad debts for the period will require a Debit to Bad Debts Expense for $4,600 calculated as

Bad Debts Expense=Accounts receivable-Allowance for Doubtful Accounts

Bad Debts Expense=$8,400-$3,800

Bad Debts Expense=$4,600

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Packard Corporation reports the following information: Net cash provided by operating activities $335,000 Average current liabil
Molodets [167]

Answer:

$165,000

Explanation:

Free cash flow is the net cash cash flow available for the shareholders or for the reinvestment after paying all capital expenditure.

The Depreciation is already adjusted in the Cash Flow from operating activities.

Free Cash Flow = Cash Flow from operating activities - Dividend payment - Capital expenditure

Free Cash Flow = $335,000 - $60,000 - $110,000 = $165,000

Current and Long term liabilities has nothing to do in free cash flow calculations.

4 0
3 years ago
ABC Company received $9,631 for its 5-year, 10% bonds with a total face value of $10,000. The market rate of interest was 11%. T
Anastaziya [24]

Answer:

The correct answer is Option A.

Explanation:

The effective interest rate (EIR) method is used when a bond is purchased at a discount or premium.

In the case of the question, the bond was purchased at $9,631 with a face value of $10,000. Interest expense is calculated as the bond price multiplied by the market rate, i.e. $9,631  x 11% = $1,059.41.

Therefore, ABC Company would record $1,059 on the first annual interest payment date using the effective-interest method.

5 0
3 years ago
Read 2 more answers
MM Proposition I with corporate taxes states that:
OLEGan [10]

Answer:

d.) I and II

Explanation:

The first proposition can be regarded as proposition that gives a clam that capital structure of a company has no impact on the value. The value of a company is been known as present value of future cash flows when it's calculated, then it cannot be affected by capital structure. It should be noted that MM Proposition I with corporate taxes states that capital structure can affect firm value by an amount that is equal to the present value of the interest tax shield.

8 0
2 years ago
HELPPPPPP!!!!
lidiya [134]

Answer:

B. Greater efficiency

Explanation:

Efficiency, in this case, will refer to achieving the desired results with minimal or no wastage. A distribution manager has the responsibility to ensure goods get to their destination as scheduled. The manager's efficiency will be gauged by the speed, accuracy, and safety of deliveries.

Other than cost savings, the distribution manager has to aim at achieving greater efficiency. Customer service and pricing are functions of other managers.

8 0
3 years ago
Read 2 more answers
Zoe Corporation has the following information for the month of March: Purchases $92,000 Materials inventory, March 1 6,000 Mater
Delvig [45]

Answer:

Zoe Company

a) Statement of Cost of Goods Manufactured:

Direct materials cost                 $90,000

Direct labor                                  25,000

Factory overhead                        37,000

Work in process, March 1           22,000

Work in process, March 31        (23,500)

Cost of goods manufactured $150,500

b) Income Statement for the month ended March 31:

Sales                                                                    $257,000

Finished goods inventory, March 1    $21,000

Cost of goods manufactured             150,500

Finished goods inventory, March 31  (30,000)

Cost of goods sold                                              $141,500

Gross profit                                                          $115,500

Sales and administrative expenses                      79,000

Net Income                                                          $36,500

c) Inventory Section of the Balance Sheet as of March 31:

Current Assets:

Inventory:

Materials inventory, March 31              $8,000

Work in process, March 31                   23,500

Finished goods inventory, March 31   30,000

Total inventory                                    $61,500

Explanation:

a) Data and Calculations:

Purchases     $92,000

Materials inventory, March 1 6,000

Materials inventory, March 31 8,000

Direct labor 25,000

Factory overhead 37,000

Work in process, March 1 22,000

Work in process, March 31 23,500

Finished goods inventory, March 1 21,000

Finished goods inventory, March 31 30,000

Sales 257,000

Sales and administrative expenses 79,000

b) Materials inventory, March 1   $6,000

Purchases                                    92,000

Materials inventory, March 31       8,000

Direct materials cost                 $90,000

4 0
3 years ago
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