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3 years ago

The following information is available for Quality Book Sales's sales on account and accounts receivable:

Business

1 answer:

meriva3 years ago

4 0

Answer:

1) Amount of uncollectible accounts expenses is $ 2,750

2) Net realizable value of receivables at the end of Year 2 is $65,040

Explanation:

Accounts Receivable Balance, January 1, Year 2 = $ 78,500

Allowance for Doubtful Accounts, January 1, Year 2 = $4,710

Sales on Account, Year 2 = $550,000

Collections of Accounts Receivable, Year 2 = $556,000

1) Amount of uncollectible accounts expenses = $550,000 ×0.5% = $ 2,750

2) Allowance for doubtful accounts, beginning balance = $4,710

Less: Write off = $ -2,850

Add: Uncollectible accounts expense for the year = $2,750

Allowance for doubtful accounts, ending balance = $4,610

Accounts receivable, Beginning balance =$78,500

Add: Credit sales = $550,000

Less: Collections = $-556,000

Less: Write off = $-2,850

Accounts receivable, Ending balance = $69,650

Less: Allowance for doubtful accounts, ending balance = $-4,610

Net realizable value = $65,040

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In 2019, Audrey claimed $2,100 on her Federal tax return for her Child and Dependent Care Expenses Credit. Her Federal adjusted

Maurinko [17]

Answer:

$1,050

Explanation:

Her adjusted gross income is $32,750, so she can claim maximum of 50% of Child and Dependent Care Expenses as CDC Credit

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3 years ago

Required information

Paladinen [302]

Answer:

Hudson Co.

1. Amount of sales dollars

= $2,430,000

2. Margin of safety (in percent)

= 33%

3-1) Contribution margin per unit = $45

2) Contribution margin ratio = 20%

3) Break-even point in units = 7,200 units

4) Break-even point in sales dollars = $1,620,000 $255

Explanation:

a) Data and Calculations:

HUDSON CO.

Contribution Margin Income Statement

For Year Ended December 31, 2019

Sales (9,600 units at $225 each) $ 2,160,000

Variable costs (9,600 units at $180 each) 1,728,000

Contribution margin 432,000

Fixed costs 324,000

Pretax income $ 108,000

Contribution margin per unit = $45 ($432,000/9,600)

Contribution margin ratio = 20% ($45/$225 * 100)

Break-even point in units = 7,200 ($324,000/$45)

Break-even point in sales dollars = $1,620,000 ($324,000/0.20) $255

1. With target pretax income of $162,000:

Amount of sales dollars = (Fixed cost + Target profit)/Contribution margin ratio

= $2,430,000 ($324,000 + $162,000)/0.20

2. Margin of safety (in percent)

1. Amount of sales = $2,430,000

2. Margin of safety = $810,000 ($2,430,000 - $1,620,000)

Margin of safety in percentage = 33% ($810,000/$2,430,000 * 100)

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3 years ago

Aubrey uses her credit card to buy some clothes for $552.86. She can pay up to $195 on the credit card each month. What is the t

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tia_tia [17]

Answer:

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Explanation:

Market intelligence -

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Hence, from the given scenario of the question,

Sue is performing market intelligence.

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Answer:

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