BUSINESS COLLEGE

The Miller Company earned $133,000 of revenue on account during Year 2. There was no beginning balance in the accounts receivable and allowance accounts. During Year 2, Miller collected $87,000 of cash from its receivables accounts. The company estimates that it will be unable to collect 3% of its sales on account. The net realizable value of Miller's receivables at the end of Year 2 was:

Answers

Answer 1

Answer:

Answer:

The net realizable value of Miller's receivables at the end of Year 2 was: $42,010

Explanation:

Open a Trade Receivable Account as follows :

Debits :

Revenue $133,000

Totals $133,000

Credits:

Cash $87,000

Balance $46,000

Totals $133,000

Note that Allowance for Doubtful debts is estimated at 3% of the Company`s Sales on Account

Allowance for Doubtful debts = $133,000 × 3%

= $ 3, 990

Net realizable value of Miller's receivables

Trade Receivable Balance $46,000

Less Allowance for Doubtful Debts $3,990

Trade Receivables $42,010

Answer 2

Answer:

Final answer:

The net realizable value of Miller Company's receivables at the end of Year 2 is calculated by estimating bad debt and subtracting it from the ending accounts receivable. The estimated bad debt is 3% of sales, leading to a net realizable value of $42,010.

Explanation:

The question revolves around calculating the net realizable value of accounts receivable for the Miller Company at the end of Year 2. First, we need to calculate the estimated bad debt. The company estimates that 3% of its sales on account will be uncollectible, which equates to $133,000 * 0.03 = $3,990. After subtracting the cash collected from receivables, $133,000 - $87,000, we get ending accounts receivable of $46,000. Finally, we deduct the estimated bad debts from ending accounts receivable to obtain the net realizable value, which is $46,000 - $3,990 = $42,010.

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Arthur is a 30 percent partner in the CAR Partnership. At the beginning of the tax year, Arthur's basis in the partnership interest was $60,000, including his share of partnership liabilities. During the current year, CAR reported net ordinary income of $40,000. In addition, CAR distributed $5,000 to each of the partners ($15,000 total). At the end of the year, Arthur's share of partnership liabilities increased by $20,000. Arthur's basis in the partnership interest at the end of the year is:a. $60,000.b. $120,000.c. $87,000.d. $75,000.e. None of these choices are correct.

Answers

Answer:

c. $87,000

Explanation:

The computation of the Arthur's basis in the partnership interest at the end of the year is shown below:

= His share of partnership liabilities + net operating income share + increased share in liabilities - distributed amount

= $60,000 + $12,000 + $20,000 - $5,000

= $87,000

Net operating income share is

= $40,000 × 30%

= $12,000

We simply applied the above formula

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B 56.4% and 4.8%.
C 59.3% and 2.8%.
D 59.3% and 4.8%.

Answers

Answer:

Option (D) is correct.

Explanation:

Given that,

Japanese adult non- institutionalized population = 110.272 million

Labor force = 65.36 million

Number of people employed = 62.242 million

Labor force participation rate is calculated as the percent of adult population involved in the labor force.

Labor force participation rate:

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= (65.36 ÷ 110.272) × 100

= 0.5927 × 100

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Unemployment rate:

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Answers

Answer:

1. $425,000

2. $24,250

Explanation:

The computations are shown below:

1. For Average Operating Assets

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= ($390,000 + $460,000) ÷ 2

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Answers

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Answers

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Debit Credit
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Supplies 2,600
Prepaid Insurance 1,800
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Other data:
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2. A count of supplies shows $1,140 of unused supplies on May 31.
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(b) Annual depreciation is $2,280 on equipment.
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6. Salaries of $880 are accrued and unpaid at May 31.

Required:
Journalize the adjusting entries on May 31.

Answers

Answer:

1. Insurance expires at the rate of $450 per month.

Dr Insurance expense 450

Cr Prepaid insurance 450

2. A count of supplies shows $1,140 of unused supplies on May 31.

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Cr Supplies 1,460

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Cr Accumulated depreciation, building 240

(b) Annual depreciation is $2,280 on equipment.

Dr Depreciation expense 240

Cr Accumulated depreciation, equipment 190

4. The mortgage interest rate is 6%. (The mortgage was taken out on May 1.)

Dr Interest expense 168

Cr Interest payable 168

5. Unearned rent of $2,510 has been earned.

Dr unearned revenue 2,510

Cr Rent revenue 2,510

6. Salaries of $880 are accrued and unpaid at May 31.

Dr Wages expense 880

Cr Wages payable 880

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