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andre [41]
2 years ago
12

Assume that Simple Co. had credit sales of $280,000 and cost of goods sold of $165,000 for the period. It estimates that 2 perce

nt of credit sales in uncollectible accounts when it uses the percentage of credit sales method and it estimates that the appropriate ending balance in the Allowance for Doubtful Accounts is $6,900 when it uses the aging method. Before the end-of-period adjustment is made, the Allowance for Doubtful Accounts has a credit balance of $400.
Required:
Prepare the journal entry to record the end-of-period adjustment for bad debts under the (a) percentage of credit sales method and (b) aging of accounts receivable method.
Business
1 answer:
elena-s [515]2 years ago
7 0

Answer:

A. Dr Bad Debt Expense $5,600

Cr Allowance for Doubtful Accounts $5,600

B. Dr Bad Debt Expense $6,500

Cr Allowance for Doubtful Accounts $6,500

Explanation:

A. Preparation of the journal entry to record the end-of-period adjustment for bad debts under

percentage of credit sales method

Dr Bad Debt Expense $5,600

Cr Allowance for Doubtful Accounts $5,600

($280,000 x .02 = 5600)

(Being to record bad debts under percentage of credit sales method)

B. Preparation of the journal entry to record the end-of-period adjustment for bad debts under the aging of accounts receivable method.

Dr Bad Debt Expense $6,500

Cr Allowance for Doubtful Accounts $6,500

($6,900 - $400 = 6500)

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A credit sale is made on July 10 for $900, terms 1/15, n/30. On July 12, the purchaser returns $100 of goods for credit. Give th
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Answer:

                                      Dr.      Cr.

July 19

Cash                            $792

Discount expense      $8

Account Receivable              $800

Explanation:

The term 1/15, n/30 mean there is a discount of 1% is available on the sales value, if payment is made within 15 days of sale with credit term of 30 days.

The sale of $900 was made on July 10 and discount period is until July 25.

On July 12 goods amounting $100 was returned and now the amount due from the customer is $800 ( $900 - $100 ).

The payment made on July 19 is actually in the discount period and it is eligible for the discount as it is made before July 25.

Discount = Amount due x Discount rate

Discount = $800 x 1% = $8

$792 Cash received against the sale made on July 10 and discount $8 is expensed. Total of $800 is credited from the account receivable account to eliminate it.

5 0
3 years ago
Swifty Corporation is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product i
Bumek [7]

Answer:

See below

Explanation:

Assembled product

Cost = $24 + $20 = $44

Selling price = $69

Profit = $69 - $44 = $25

Unassembled product

Cost = $24

Selling price = $56

Profit = $56 - $24 = $32

Therefore, Swifty corporation should sell before assembly, the company will be better off by $7

5 0
2 years ago
" Lanni Products is a start-up computer software development firm. It currently owns computer equipment worth $30,000 and has ca
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Answer:

A) Lanni takes out a bank loan. It receives $50,000 in cash and signs a note promising to pay back the loan over three years.  FINANCIAL ASSET CREATED: when the loan was received, a financial asset was created. Money is exchanged for a promissory note.

B) Lanni uses the cash from the bank plus $20,000 of its own funds to finance the development of new financial planning software.  REAL ASSET CREATED: when the software was developed, a real asset was created. Money was invested in developing the software.

C) Lanni sells the software product to Microsoft, which will market it to the public under the Microsoft name. Lanni accepts payment in the form of 1,500 shares of Microsoft stock.  FINANCIAL ASSET CREATED: when the software was traded, a financial asset was created. A real asset was traded in exchange for financial assets.

D) Lanni sells the shares of stock for $80 per share and uses part of the proceeds to pay off the bank loan." FINANCIAL ASSET DESTROYED: when the loan is paid back, the financial asset (loan) ceases to exist. When the money is paid back to the bank, the loan and the promissory note cease to exist.

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2 years ago
Why does welsh imply that the authenticity of the dance is brought into question because of global sharing?
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Irvine Welsh (born 27 September 1958) is a Scottish novelist, playwright and short story writer. His 1993 novel Trainspotting was made into a film of the same name. , Welsh says dance, music and its surrounding culture remain a major influence on his work.That is why he imply that the authenticity of the dance is brought into question because of global sharing?

When dance forms become globalized, the question of whether or not the style can maintain its authenticity is raised. This, in turn, raises the question of what it means to be culturally authentic in the first place, as well as whether or not a style of dance can truly be possessed by a person or people.

Dance is a deeply personal art form, steeped in traditions, emotions, and experiences. Authenticity is what keeps dance alive.

It's clear that authenticity is one of the most important values in our society - but it means different things to different people.For dancers, authenticity isn't just some word to be tossed around.

To learn more about of authenticity of the dance here

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3 0
1 year ago
If making your family and friends a priority is important to you, you value
Kay [80]

Answer:

Relationships.

Explanation:

We maintain ourselves worth by trying to please excel meditate and even control or change ourselves to be closer to the people we love most.

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