All categories

4 years ago

Allowance Method Journalize the following transactions, using the allowance method of accounting for uncollectible receivables.

Business

1 answer:

Vikentia [17]4 years ago

4 0

The following journal entries will be passed in the books of account

<u>Explanation:</u>

1. cash account will be debited with and amount of 1980 and allowance for doubtful accounts will be debited with an amount of $1210 and accounts receivable - Paula Spitler will be credited with an amount of $3190.

2. accounts receivable - Paula Spitler will be debited with an amount of $1210 and allowance for doubtful accounts will be credited with the same account.

3. Collection - Cash will be debited with an amount of $1210 and accounts receivable will be credited with the same amount.

You might be interested in

Which of these is an example of using secondary data for market research?

Effectus [21]

Answer:

B. Using census data to find information about your target market

Explanation:

4 0

3 years ago

According to Keynesian theory, which of the following is not true at each short-term macro equilibrium?

Alex787 [66]

Answer:

All macroeconomic goals are achieved.

Explanation:

All macroeconomic goals should be achieved in the long term macro equilibrium.

On the long term macro equilibrium, real GDP should be equal to potential GDP. This is all theoretical since there is no real possibility that the potential GDP is ever equal to the real GDP. There will always be at least one economic actor that is not being 100% efficient, so potential GDP is unreachable.

6 0

3 years ago

Grouper Inc. is involved in a lawsuit at December 31, 2020. Prepare the December 31 entry assuming it is probable that Grouper w

goldenfox [79]

Answer:

Grouper Inc. is involved in a lawsuit at December 31, 2020

It is given that Grouper will be liable for $863,600 as a result of this suit. Therefore, the journal entry for this situation is as follows;

On December 31, 2020

Lawsuit loss A/c Dr. $863,600

To Lawsuit liability $863,600

(To record the lawsuit loss of the Grouper Inc.)

8 0

4 years ago

Boyne Inc. had beginning inventory of $12,000 at cost and $20,000 at retail. Net purchases were $120,000 at cost and $170,000 at

Nookie1986 [14]

Answer:

Ending inventory at cost $30,360

Explanation:

The computation of the ending inventory at cost using conventional retail method is shown below:

<u>Particulars Cost Retail Cost to retail ratio </u>

beginning inventory $12,000 $20,000

Add: purchase $120,000 $170,000

Add:Net markups $10,000

Less: net markdown -$7,000

Goods available for sale $132,000 $193,000

Cost to retail percentage 66% ($132,000 ÷ $200,000)

Less: net sales $147,000

Estimated ending inventory at retail $46,000

Ending inventory at cost $30,360

($46,000 ×0.66)

8 0

3 years ago

The Parks and Recreation Department of Burkett County estimates the initial cost of a river park to be $2,200,000, annual upkeep

asambeis [7]

Answer:

B/E ratio 1.2356

Explanation:

$B/E = \frac{PV \: cash-flow}{initial \: cost\: + operating \: cost \: PV}$

300,000 - 43,000 = 257,000

257,000/0.04 = 6,425,000

initial cost 2,200,000

unkeep cost 120,000/0.04 = 3,000,000

6,425,000/(2,200,000+3,000,000) = 1.235576923

Note we are given a discount rate, which means the upkeep, benefits and disbenefits are perpetual.

4 0

3 years ago