At December 31, 2018, Novak Corp. Company had a credit balance of $ 18,000 in Allowance for Doubtful Accounts. During 2019, Novak Corp. wrote off accounts totaling $ 13,300. One of those accounts ($ 3,200) was later collected. At December 31, 2019, an aging schedule indicated that the balance in Allowance for Doubtful Accounts should be $ 27,200. Prepare journal entries to record the 2019 transactions of Novak Corp. Company

Answers

Answer 1
Answer:

Answer:

Explanation:

The journal entries are shown below:

1. Allowance for Doubtful Accounts A/c Dr $ 13,300

      To Accounts receivable A/c $ 13,300

(Being written off amount is recorded)

2. Accounts receivable A/c Dr  $3,200

      To  Allowance for Doubtful Accounts A/c $3,200

(Being reverse written off)

3. Cash A/c Dr  $3,200

        To Accounts receivable A/c  $3,200

(Being amount collected)

4. Bad debt expense A/c Dr   $19,300

           To Allowance for doubtful debts   $19,300

(Being bad debt expense is recorded)

The computation of the bad debt expense is shown below:

Ending balance of Allowance for Uncollectible Accounts = Beginning balance of Allowance for Uncollectible Accounts + 2019 bad debts - 2019 write off amount  + collected amount

$27,200 = $18,000 + 2019 bad debts - $13,300 + $3,200

$27,200 = $7,900+ 2019 bad debts  

So,2019 bad debts = $27,200 - $7,900 = $19,300


Related Questions

According to the modern view of the Phillips curve, expansionary macroeconomic policy that leads to inflation will reduce unemploymenta. only if people underestimate the inflationary side effects of the policy.b. only if people overestimate the inflationary side effects of the policy.c. if people accurately anticipate the inflationary side effects of the policy.d. only if monetary policy provides the macroeconomic stimulus.
Kroger, a grocery store chain, sells thousands of products from hundreds ofdifferent producers that are shipped through a variety of shipping companiesand stored at various warehouses facilities. The coordinated efforts with eachchannel partner at each touch point takes efficiency and communication. Inorder for the process to run smoothly, which three functions do channelpartners need to perform to efficiently flow products and titles to theconsumer to get payments back to producers?O transactional, logistical, and facilitating functionso facilitating, commercial, and institutional functionslogistical, commercial, and transactional functions
On June 10, Marin Company purchased $8,400 of merchandise from Cullumber Company, on account, terms 3/10, n/30. Marin pays the freight costs of $380 on June 11. Goods totaling $500 are returned to Cullumber for credit on June 12. On June 19, Marin Company pays Cullumber Company in full, less the purchase discount. Both companies use a perpetual inventory system.Prepare separate entries for each transaction on the books of Cullumber Company
Lyme Home has 5,000 bonds outstanding with a face value of $1,000 each and a coupon rate of 7.65 percent. Interest is paid semiannually. What is the amount of the annual tax shield on debt if the tax rate is 23 percent
On July 23 of the current year, Dakota Mining Co. pays $6,165,600 for land estimated to contain 8,808,000 tons of recoverable ore. It installs machinery costing $1,849,680 that has a 10-year life and no salvage value and is capable of mining the ore deposit in eight years. The machinery is paid for on July 25, seven days before mining operations begin. The company removes and sells 488,500 tons of ore during its first five months of operations ending on December 31. Depreciation of the machinery is in proportion to the mine's depletion as the machinery will be abandoned after the ore is mined.Required:Prepare entries to record the following:_______.(a)To record the purchase of the land.(b)To record the cost and installation of machinery.(c) To record the first five months' depletion assuming the land has a net salvage value of zero after the ore is mined.(d)To record the first five months' depreciation on the machinery.

What if, instead of making jet fighter experience a requirement to become an astronaut, NASA instead offered higher salaries to astronauts with jet fighter experience than to those who did not have jet fighter experience

Answers

Answer:

In this situation, most of the NASA workforce would still be composed of austronauts with jet fighter experience because they would be lured by the higher wages offered to them.

However, the difference would lie in that there would also be some austronauts without jet figther experience, who would still try to get into NASA, despite being offered lower wages.

This is a different situation to the current one, where jet fighter experience is an requirement to become a NASA austronaut, which means that those without this type of experience are barred from entering NASA, no matter how low of a wage they would be willing to take.

Final answer:

Offering higher salaries to astronauts with jet fighter experience may attract more qualified candidates with these skills, as these prepare them for the extremes of space travel. Yet, this could create salary disparity and undervalue other essential astronautical skills and experience.

Explanation:

If NASA were to revise their hiring strategy and offer higher salaries to astronauts with jet fighter experience, it might increase the number of qualified applicants with this specific type of experience. Jet fighter experience and the associated G-force training in simulators is highly valuable in the space industry as it prepares individuals for the extreme forces experienced during space travel. Furthermore, adapting to zero G (free fall or weightlessness), another specific aspect of astronaut training, could be an easier transition for those with jet fighter background.

However, this kind of strategy might create a salary disparity among astronauts, potentially leading to dissatisfaction among those without jet fighter experience. It's important to remember that there are many valuable skills and experience required in space exploration, not just those gained through jet fighter training. Higher salaries based purely on jet experience might overlook other important attributes and qualifications.

Learn more about Salary strategies here:

brainly.com/question/34099403

#SPJ11

The company that manufactures molson beer, which is typically consumed by males, launched an alcoholic lemonade beverage to attract more females. this launch of a new product to attract a new market for molson's products is an illustration of a _____ strategy.

Answers

The company is using a viral illusion strategy.

Use below information to prepare general journal entries for Belle Co.’s 1 through 7 transactions. a. D. Belle created a new business and invested $5,900 cash, $6,900 of equipment, and $12,900 in web servers in exchange for common stock.
b. The company paid $6,000 cash in advance for prepaid insurance coverage.
c. The company purchased $800 of supplies on account.
d. The company paid $600 cash for selling expenses.
e. The company received $6,000 cash for services provided.
f. The company paid $800 cash toward accounts payable.
g. The company paid $4,000 cash for equipment.

Answers

Here are the general journal entries for each of the transactions:

a. D. Belle invested in the business with cash, equipment, and web servers in exchange for common stock:

  • Cash: $5,900
  • Equipment: $6,900
  • Web Servers: $12,900
  • Common Stock: $25,700

b. The company paid in advance for insurance coverage:

  • Prepaid Insurance: $6,000
  • Cash: $6,000

c. The company purchased supplies on account:

  • Supplies: $800
  • Accounts Payable: $800

d. The company paid cash for selling expenses:

  • Selling Expenses: $600
  • Cash: $600

e. The company received cash for services provided:

  • Cash: $6,000
  • Service Revenue: $6,000

f. The company paid cash to settle accounts payable:

  • Accounts Payable: $800
  • Cash: $800

g. The company paid cash to acquire equipment:

  • Equipment: $4,000
  • Cash: $4,000

Journal entries are the chronological recordings of financial transactions in a company's accounting system. They serve as a detailed record, documenting each transaction's effects on various accounts, such as assets, liabilities, revenues, and expenses.

Journal entries provide a clear audit trail, helping track the flow of money and enabling the creation of financial statements.

They act as the foundation for accurate financial reporting, facilitating transparency, analysis, and decision-making within an organization.

Learn more about journal entries here:

brainly.com/question/28390337

#SPJ12

Final answer:

This question is about preparing general journal entries for various transactions in Belle Co.'s business. The company engages in activities such as investing cash and equipment, purchasing supplies on account, and receiving cash for services provided. The journal entries for each transaction are provided in the response.

Explanation:

Journal Entry a:

Debit: Cash ($5,900) + Equipment ($6,900) + Web servers ($12,900)

Credit: Common stock ($25,700)

Journal Entry b:

Debit: Prepaid Insurance ($6,000)

Credit: Cash ($6,000)

Journal Entry c:

Debit: Supplies ($800)

Credit: Accounts payable ($800)

Journal Entry d:

Debit: Selling expenses ($600)

Credit: Cash ($600)

Journal Entry e:

Debit: Cash ($6,000)

Credit: Service revenue ($6,000)

Journal Entry f:

Debit: Accounts payable ($800)

Credit: Cash ($800)

Journal Entry g:

Debit: Equipment ($4,000)

Credit: Cash ($4,000)

Learn more about Preparing general journal entries here:

brainly.com/question/33091811

#SPJ3

12. A company has an EPS of $2.00, a book value per share of $20, and a market/book ratio of 1.2x. what is its P/E ratio

Answers

Answer:

P/E Ratio = 12x or 12 times

Explanation:

We know that the P/E ratio is calculated by dividing the price per share by the earnings per share or EPS.

P/E = Price per share / Earnings per share

We already have EPS. We need to calculate the price per share.

It is given that book value per share is $20 and the market to book ratio is 1.2x or 1.2 times. Using the formula for market to book ratio, we calculate the market price per share to be,

M/B = Market price per share / Book value per share

1.2 = Market price per share / 20

20 * 1.2 = Market price per share

Market price per share = $24

So, P/E ratio = 24 / 2

P/E Ratio = 12x or 12 times

The Price/Earnings (P/E) ratio for the company is 12, indicating that investors are willing to pay 12 times the company's earnings per share (EPS) for its stock based on its current market price.

The Price/Earnings (P/E) ratio is calculated by dividing the market price per share by the earnings per share (EPS).

- EPS = $2.00

- Market/Book Ratio = 1.2x

- Book Value per Share = $20

Market Price per Share = Market/Book Ratio * Book Value per Share

                        = 1.2 * $20

                        = $24

Now, calculate the P/E ratio:

P/E Ratio = Market Price per Share / EPS

         = $24 / $2.00

         = 12

The P/E ratio for the company is 12.

For more questions on Price/Earnings:

brainly.com/question/30074795

#SPJ3

If the government wants to reduce GDP by $500 million, the most appropriate action is: contractionary fiscal policy, which includes a reduction in government spending by $500 million.
contractionary fiscal policy, which includes a reduction in government spending by more than $500 million.
contractionary fiscal policy, which includes a reduction in government spending by less than $500 million.
expansionary fiscal policy, which includes an increase in government spending by $500 million.
expansionary fiscal policy, which includes an increase in government spending by more than $500 million.
expansionary fiscal policy, which includes an increase in government spending by less than $500 million.

Answers

Answer:

The correct answer is the first option: contractionary fiscal policy, which includes a reduction in government spending by $500 million.

Explanation:

On one hand, Gross Domestic Product, or GDP, is the name given in the field of economics, to the term that refers to a monetary measure of the market value of all the goods and services that are produced in the economy of a country in an specific time period of evaluation.  

On the other hand, a contractionary fiscal policy indicates the fact of reducing the amount of money spent in the economy, therefore that the main focus of this type of policy is to try to lower the public expenditure basically.  

Therefore that it is understandable that the correct answer is the first option where the action would be of reducing the government spending by $500 million, according to what the question ask.

1. How business driven MIS, value driven business, E-business, and information security relate to each other. 2. Please provide examples of companies when possible and ensure that you justify your response.

Answers

Answer:

2. Google is an example for this type of business.

Explanation:

These terms (MIS, Value driven business, E-Business, and information security) are interlinked in today technological era of businesses.

As the example is given above about google, it is being explained right here.

As we all know google is a technology based organization which is working on the concept of Management information system. Its recent case study shows that how this organization is a value driven business.

Google actually, takes really care about its employees, it has all necessary facilities to offer for its employees such as on-site doctors, cafeteria led by famous chefs, so that means they are value driven business too.

it is also providing E-business facilities to other businesses. And its information security is one of the top on list.

Other Questions