Answer:
Showme will increase net income by 15000.
Explanation:
The cash basis is a method of recording accounting transactions for revenue and expenses only when the corresponding cash is received or payments are made. Thus, you record revenue only when a customer pays for a billed product or service, and you record a payable only when it is paid by the company
Showme
Cash basis bussines
Services 15000
Answer:
The amount of the allowance for doubtful debts is BD11,107.50.
Explanation:
Allowance for doubtful accounts can described as an estimate of the amount of accounts receivable which a business expects that it will not be collectible.
From the question, we have:
Credit sales = BD740,500
Estimated bad debts percentage = 1.5%
Therefore, allowance for doubtful debts can be calculated as follows:
Allowance for doubtful debts = Credit sales * Estimated bad debts percentage ............ (1)
Substituting the values into equation (1), we have:
Allowance for doubtful debts = BD740,500 * 1.5% = BD11,107.50
Therefore, the amount of the allowance for doubtful debts is BD11,107.50.
Answer:
$11,700
Explanation:
Ending Stock = Opening Stock + Production - Sales
= 0 + 5,000 - 4,100
= 900
Ending Stock = 900 x $13.00 = $11,700
Therefore
The dollar value of the ending inventory under variable costing would be $11,700
Answer:
The answers are:
- Jerry must recognize $0 of gain on the transfer of the rental house
- Sally's tax basis is $80,000
Explanation:
Capital gains taxes are usually excluded when you sell a house or transfer the house in a divorce settlement. The exclusion is up to $250,000 of capital gains.
Since Sally didn't buy the house, but received it as part of their divorce settlement from Jerry, the same cost basis will apply to Sally.