Answer:
bad debt expense 6,000 debit
allowance for uncollectible amounts 6,000 credit
Explanation:
expected allowance balance:
account receivable x expected uncollectible amount
200,000 x 4% = 8,000
currently the allowance balance is 2,000
so the amount of the adjustment will be to move the balance to 8,000 from 2,000: adjusting entry for 6,000
Answer:
d. All of these are correct.
Explanation:
The UCC are a set of guidelines that deals with contracts involving sale of goods. It settles disputes that occur during such transactions.
Section 2-201 of the UCC deals with statute of fraud.
Contract for a sale of goods is not enforceable unlesss there is some written contract of sale by the party against who enforcement is sought or his official agent.
This document also a written signature of the party against whom enforcement is sought, and a written indication of the quantity sold.
Answer:
The correct answer is option B.
Explanation:
In 2017, Lynx earned an accounting profit of $3 million.
Lynx's production facilities might have also been used to produce components for mobile phones, which would have generated $2 million in revenues and saved the company $500,000 in production costs.
The accounting profit involves only explicit costs. While economic profit includes both explicit as well as implicit cost.
Here, the implicit cost is the opportunity cost of producing toys components. Lynx could have earned greater profit if it produced components for mobile phone and also could have saved cost of production.
Economic profit
= accounting profit - implicit cost
= $3 million - ($2 million + $500,000)
= $3 million - $2.5 million
= $500,000
So, Lynx had an economic profit of $500,000.
Answer:
The journal entry for the issuance of the preferred stock is shown below:
Explanation:
Cash A/c..................................................Dr $30,000
Preference Stock A/c....................................Cr $10
Paid in Capital in excess of Par A/c...........Cr $29,990
Working Note:
Cash = Shares × Issued price per share
where
Shares are 1,000
Issued Price per share is $30
= 1,000 × $30
= $30,000
Preference Stock = Shares × Par price
= 1,000 × $0.01
=$ 10
Paid in Capital in excess of Par = Cash - Preference stock
= $30,000 - $10
= $29,990
Answer:
The correct answer is letter "E": 80.
Explanation:
According to the U.S. Bureau of Labor Statistics (<em>BLS</em>) by the end of the second quarter in 2019 over 107 million workers -around 80% of the total American labor force- were engaged in the private service industry. The most important sectors related were <em>transportation, utilities, education, health care, professional, </em>and <em>business services</em>.
