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olga55 [171]
2 years ago
14

Which of the following reflects the effect of the year-end adjusting entry to record estimated uncollectible accounts expense us

ing the allowance method? Balance Sheet Income Statement Statement of Cash Flows Assets = Liabilities + Stockholders' Equity Revenue Expense = Net Income A. − = n/a − n/a − − − OA B. n/a = − − n/a + − n/a C. n/a = − − n/a + − − OA D. − = n/a − n/a + − n/a
Business
1 answer:
Paha777 [63]2 years ago
3 0

It is only option <em>D.  − = n/a − n/a + − n/a</em> that reflects the effect of the year-end adjusting entry for Uncollectible Accounts Expense when the allowance method is used.

The entry reduces Accounts Receivable (Assets) through its contra account (the Allowance for Uncollectible Accounts).

It does not affect the liabilities.  It reduces Equity because it is an expense that reduces Retained Earnings.

The entry does not affect the Revenue but increases Expenses, which reduce the Net Income.

It is not a cash flow item and does not affect the Statement of Cash Flows.

Data and Options:

                                           Balance Sheet  Income Statement  Statement of

                                                                                                        Cash Flows

Assets = Liabilities + Stockholders' Equity  Revenue Expense = Net Income

A.  −     =      n/a             −                                    n/a           −             −       − OA

B.  n/a  =       −               −                                    n/a           +             −         n/a

C. n/a   =       −               −                                    n/a           +             −       − OA

D. −      =      n/a             −                                    n/a           +             −       n/a

The estimated <em>Uncollectible Accounts Expense</em> is Bad Debt Expense.  

When this year-end adjusting entry is recorded, the financial statements affected are only the Income Statement (expenses) and the Balance Sheet (equity).

Thus, the only correct reflection of the adjustment is option D.

Learn more: brainly.com/question/17350161

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goldenfox [79]
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4 years ago
Your firm (an Australian firm) makes a sale to a Japanese customer.  The sale price is 200 million Japanese Yen payable in exact
charle [14.2K]

Answer:

An Australian Firm Selling to a Japanese Customer

a) Direct Quote of the Exchange Rate between Australian Dollar and Japanese Yen:

A$ 1 = ¥90

Meaning 1 Australian Dollar = 90 Japanese Yen.

Therefore, the price of the goods would be A$ 2,222,222.22222 (¥200 million)/ ¥90

b)Theoretical Current Forward Exchange Rate, quoted in terms of JPY/AUD for delivery in three months:

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= ¥90 x (1 +0.005) / (1 +0.03) x 360/90 = ¥90 x 1.005/1.03 x 360/90

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c) The Australian firm can take advantage of any decreases in the exchange rate and also ensure that it receives at least Australian $2 million by entering into a Currency Forwards Contract.

d) If the spot exchange rate in 3 month's time is:

(i) AUD/JPY=150, the outcome of the hedging with a Currency Forwards Contract to get at least A$ 2 million would be the gain of:

Forward Exchange outcome in Australian Dollars = ¥200 million/ ¥150 =

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Hedging outcome minus Forward Exchange outcome

A$2 million - A$ 1,333,333.33333 = A$666,666.66667

(ii) AUD/JPY = 50, the outcome of the hedging with a Currency Forwards Contract to get at least A$ 2 million would be the loss of:

Forward  Exchange outcome =  in Australian Dollars = ¥200 million/ ¥50 =

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b) If A$ 1 = ¥90

Therefore, the price of the goods would be A$ 2,222,222.22222 (¥200 million)/ ¥90 in Australian Dollars.

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geniusboy [140]

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