Answer:
Journal entries for Markowitz Company’s books are given below
Explanation:
February 6
Debit Credit
Receivable $75000
Sales $75000
Debit Credit
Cost of good sold $50,000
Inventory $50,000
February 8
Debit Credit
Sales Return $10,000
Receivable $10,000
Debit Credit
Inventory $5,000
Cost of good sold $5,000
February 16
Debit Credit
Cash $63,700
Sale discount $1300
Receivable 65,000
Workings for february 16
Discount = 65,000 x 2% = 1300
Cash = 65000 x 98% = 63,700
Account Receivable = 75,000 - 10,000 = 65,000
True??? i think but i may be wrong.
Answer:
The net realizable value of accounts receivable immediately after the write-off is $33,400
Explanation:
Net realizable value of accounts receivable is the Amount that the Company expects to receive from its Account Receivables after accounting for Debts Written Off and Allowances for Doubtful debts
<u>Net realizable value of accounts receivable:</u>
Accounts Receivable $37,000
<em>Less</em> Uncollectible accounts written-off ($800)
<em>Less</em> Allowance for Doubtful Accounts ($2,800)
Net realizable value of accounts receivable $33,400
Answer:
$500 million
Explanation:
Assets - Liabilities
= $750 - ($50+$100+$200+$100)
= $750 million - $450 million
=$300 million
Common stock = $40 million, Retained earnings = $160 miillon
Equity = $160 + $40 + $300 = $500 million
So, best estimate for the firm’s value of equity is $500 million.