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alexgriva [62]
3 years ago
8

On January 1, Wei company begins the accounting period with a $40,000 credit balance in Allowance for Doubtful Accounts. On Febr

uary 1, the company determined that $8,800 in customer accounts was uncollectible; specifically, $1,900 for Oakley Co. and $6,900 for Brookes Co. Prepare the journal entry to write off those two accounts. On June 5, the company unexpectedly received a $1,900 payment on a customer account, Oakley Company, that had previously been written off in part a. Prepare the entries to reinstate the account and record the cash received.
Business
1 answer:
faltersainse [42]3 years ago
6 0

Answer:

The Journal entries are as follows:

(a) On February 1,

Allowance for doubtful accounts      Dr. $8,800

To Account receivable-Oakley Co                         $1,900                      

To Account receivable-Brookes Co                       $6,900            

(To record write off)

(b) On June 5,

(i)

Account receivable-Oakley Co.         Dr. $1,900

To Allowance for doubtful accounts                     $1,900

(To record amount reinstated)

(ii)

Cash  A/c                                          Dr. $1,900

To Account receivable-Oakley CO                     $1,900

(To record cash received)

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Zigzag Manufacturing has just hired a new controller, Leslie Demorest. During her first week on the job, Leslie was asked to est
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Answer:

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The Effectiveness of Leslie Demorest's Budgeting Strategy

The strategy of adjusting the previous year's operating expenses with inflation is not an effective way of strategic budget planning.  Leslie's budgeting strategy does not take advantage of forecasts of unexpectedly good performance and fails to provide any reaction that can occur when there are downturns in cash flow.

An effective budgeting strategy should provide the standard for the effective use of financial resources of Zigzag Manufacturing in its business operations.  There are no clear goals to be achieved and an evaluation of how the goals will be achieved through the budget implementation.

Explanation:

An effective budget should be able to forecast and track revenues and expenses, which are received and incurred in pursuit of business goals and projections.  An effective budget ensures that those who implement the projections contained in the budget remain motivated.  The idea of adjusting previous expenses with inflation is not an effective budgeting strategy.

3 0
3 years ago
Which of the following is not a characteristic of intangible assets?(a)They lack physical existence.(b)They are not financial in
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Answer: Option C

Explanation:

A. Assets with physical existence are called tangible assets.

B. There are several financial instruments that lacks physical substance but are not considered as intangible assets.

C. Intangible assets can be either long term or short term.

D. Only those intangible assets that have definite lives are amortized, others with indefinite life are not.

4 0
3 years ago
Nobel laureate Milton Friedman and his followers belong to a school of thought known as monetarism. What do the monetarists argu
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C. The Fed should target the money​ supply, not the interest​ rate, and that it should adopt the monetary growth rule.

6 0
3 years ago
Assume Julian has a choice between two deposit accounts. Account A has an annual percentage rate of 7.55 percent but with intere
Alex Ar [27]

Answer:

The correct answer is letter "A": Account A.

Explanation:

Compound interest is the interest an investor earns on the original investment plus all the interest earned on the interest that has accumulated over time. It is also called <em>interested on interested</em>. The frequency of compounding could be scheduled from daily to annually. The more frequent the compound interest is set, the most beneficial it is for the investor.

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3 years ago
Aldo Redondo drives his own car on company business. His employer reimburses him for such travel at the rate of 36 cents per mil
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<u>Solution and Explanation:</u>

<u>Step 1 </u>

Consider the given information:

Reimbursement = 36 cents per mile

Fixed cost per year = $2,052 minus 205200 cents

Direct variable cost = 14.4 cents per mile

<u>Step 2 </u>

At the break-even point, total cost becomes equal to the total revenue.

Suppose it takes Q miles for ARto reach break-even.

Step1: Calculate the total cost of AR when the car cover Q miles, as shown below:

Total Cost = Fixed cost + Variable Cost

                 = 205,200 + 14.4 Q

<u>Step 2</u> Calculate the total revenue (reimbursement) of AR when the car covers Q miles, as shown below:

Total Revenue = Reimbursement multiply with Total miles

                       = 36Q

<u>Step 3:</u> Calculate the break-even miles for the car, as shown below:

At break-even,  Total cost = Total revenue

205,200 plus 14.4Q = 36Q

      36Q minus 14.4Q = 205,200

            21.6Q = 205,200

   Q = 205,200 divide by 21.6

    Q = 9,500 miles

Hence, AR should drive 9,500 miles to break-even.        

5 0
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