Answer:
$5,400
Explanation:
The amount that should be debited to bad debt expense is shown below:
= Net credit sales × uncollectible percentage
= $900,000 × 0.6%
= $5,400
We simply multiplied the net credit sales with the uncollectible percentage so that the bad debt expense should be computed and the same is to be considered
hence, the bad debt expense is $5,400
23,748.3853 i think that’s the answer
Answer:
$328000
Explanation:
Given: Cost of machine= $880000
Residual value= 60000
Estimated life= 10 years
Company use straight line depreciation method.
∴ Depreciation = ![\frac{\textrm{cost of machine- residual value}}{estimated\ useful\ life}](https://tex.z-dn.net/?f=%5Cfrac%7B%5Ctextrm%7Bcost%20of%20machine-%20residual%20value%7D%7D%7Bestimated%5C%20useful%5C%20life%7D)
⇒ Depreciation= ![\frac{880000 - 60000}{10} = \frac{820000}{10}](https://tex.z-dn.net/?f=%5Cfrac%7B880000%20-%2060000%7D%7B10%7D%20%3D%20%5Cfrac%7B820000%7D%7B10%7D)
∴ Depreciation=
per year.
Now, lets find the value of depreciation.
∵ Machine is sold on December 31, 2019, which is 6 years after it is installed.
∴ Depreciation value after 6 years= ![\textrm{Depreciation value every year \times number of years used}](https://tex.z-dn.net/?f=%5Ctextrm%7BDepreciation%20value%20every%20year%20%5Ctimes%20number%20of%20years%20used%7D)
Depreciation value after 6 years= ![82000\times 6 = \$ 492000](https://tex.z-dn.net/?f=82000%5Ctimes%206%20%3D%20%5C%24%20492000)
Next, finding the value of machine after 6 years of depreciation.
Value of machine after 6 years= ![820000 - 492000= \$ 328000](https://tex.z-dn.net/?f=820000%20-%20492000%3D%20%5C%24%20328000)
∴ Disposal value of machine after 6 years of usage is
, however, machine was sold at $225000.
Answer:
The answer is B.
Explanation:
Prepaid expense is an expense that has been paid for but the benefits or satisfactions have not been fully derived. They are yet to be recorded as an expense.
Prepaid expense is an asset to a business or firm. For example, a business has paid for an insurance that will last for a year or has paid for a rent that will last a year.
As the benefit is being enjoyed, the business will recognize it as an expense and prepaid expense account in the balance sheet will decrease by the same amount.
The correct answer is B. prepaid expense has not yet been recorded as expenses but have been paid for.
Answer:
b. Book Error
e. Interest earned on the Checking account
f. Collections of Accounts receivable by the bank.
Explanation:
Items which must be adjusted to the book balance as this question is concerned are <u>Book Error</u>, <u>Interest earned on the Checking account</u> & <u>Collections of Accounts receivable by the bank.</u>
These above items require adjustment in book balance to compute the adjusted book balance.