On December 31, 2018, the balance in Megan's Products Accounts Receivable was $680,000 and net credit sales amounted to $3,800,000 during 2018. An aging analysis of the accounts receivable indicated that $40,000 in accounts are expected to be uncollectible. Prepare the adjusting entries to record estimated bad debt expense using the percentage-of-receivables basis under each of the following independent assumptions:
Answers
Answer and Explanation:
The Journal entry is shown below:-
a. Bad Debt Expense Dr, $36,800 ($40,000 – $3,200)
To Allowance for Doubtful Accounts $36,800
(Being the bad debt expense is recorded)
For recording this we debited the bad debt expense as it increased the expenses and at the same time it reduced the assets so the allowance for doubtful accounts is credited
b. Bad Debt Expense Dr, $40,730 ($40,000 + $730)
To Allowance for Doubtful Accounts $40,730
For recording this we debited the bad debt expense as it increased the expenses and at the same time it reduced the assets so the allowance for doubtful accounts is credited
Related Questions
Which of the following statements is most accurate? Group of answer choices Multimedia presentations are no longer used in the business world. Low-tech visual aids are not appropriate for the business world. Today's speakers rely exclusively on the use of multimedia slides in their presentations because they know that multimedia slides have no disadvantages. Effective speakers analyze their audience and the speaking occasion to help them determine what type of visual aid to use.
According to the VRIO (value, rarity, imitability, organization) criteria, which of the following marketing or supply chain activities must be avoided by companies? a. Activities that are hard to imitate b. Activities that add value c. Activities that contribute to organizational capabilities d. Activities that are followed by other vendors
The difference between the small business owner and the entrepreneur is that the entrepreneur:_________ a) assumes the risk of the business manages b) the business is responsible for the profits of the business c) is accurately described by all of the above files taxes for the business
(1) You go to Seven-11 and see the price of a super Slurpee quoted as $1.39. (2) You buy the super Slurpee and pay with $1.39 in cash. In the first instance money serves as ___________, while in the second instance money serves as ___________.
Answers
Answer:
stock price is below $50
Explanation:
given data
price of a stock = $64
strike price = $60
option price = $10
solution
we know here that stock sell for $60 and pay for $10
so that here price of stock is
stock price = $60 - $ 10
stock price = $50
and net profit will be
net profit = $10 - $10
net profit = 0
so that we can say stock price is less than $50 for trader for making profit 0 or greater than 0.
so price will be below than $50
Answers
Answer:
A. $147,000
Explanation:
All cost incurrend in the installation of the assembly line, and their put to use to meet the company demand will be capitalized
the machine cost
the labor to install the machine
the parts added to the assembly line
rearrange of the assembly line
All those cost were incurred to leave the assembly line ready to use, are associate with the long-term asset so it can be capitalized through it.
75,000 + 14,000 + 40,000 + 18,000 = 147,000
Answers
Answers
Answer:
$10.98
Explanation:
Dividend per year;
D1 to D2 = 0
D3 = 1.25
D4 = 1.25 (1.21) = 1.5125
D5 = 1.5125 (1.21) = 1.8301
D6 = 1.8301 (1.08) =1.9765
Find Present values of each dividend at 18% required return;
PV( D1 to D2) = 0
PV( D3) = 1.25/1.18³ = 0.7608
PV( D4) = 1.5125 / (1.18^4) = 0.7801
PV( D5) = 1.8301 / (1.18^5) = 0.8000
PV( D6 onwards)
PV( D6 onwards) = 8.6393
Next, sum up the PVs;
= 0 + 0.7608 + 0.7801 + 0.8000 + 8.6393
= 10.98
Therefore, this stock is valued at $10.98
Answers
Answer:
Packaging Solutions Corporation
1. Planning Budget
Direct labor $68,460
Indirect labor $12,500
Utilities $7,200
Supplies $2,980
Equipment depreciation $28,600
Factory rent $8,500
Property taxes $2,700
Factory administration $15,820
2. Flexible Budget
Direct labor $65,200
Indirect labor $12,100
Utilities $7,100
Supplies $2,900
Equipment depreciation $28,100
Factory rent $8,500
Property taxes $2,700
Factory administration $15,700
3. Spending Variances:
Flexible Actual Spending
Budget Budget Variance
Direct labor $65,200 $66,780 $1,580 U
Indirect labor $12,100 $11,680 $420 F
Utilities $7,100 $7,590 $490 U
Supplies $2,900 $3,190 $290 U
Equipment depreciation $28,100 $28,100 $0 None
Factory rent $8,500 $8,500 $0 None
Property taxes $2,700 $2,700 $0 None
Factory administration $15,700 $15,050 $650 F
Explanation:
a) Data and Calculations:
Planned labor-hours in March = 4,200
Actual labor-hours in March = 4,000
Cost Formulas
Direct labor $16.30q
Indirect labor $4,100 + $2.00q
Utilities $5,100 + $0.50q
Supplies $1,300 + $0.40q
Equipment depreciation $18,100 + $2.50q
Factory rent $8,500
Property taxes $2,700
Factory administration $13,300 + $0.60q
Actual Cost Incurred In March:
Direct labor $ 66,780
Indirect labor $ 11,680
Utilities $ 7,590
Supplies $ 3,190
Equipment depreciation $ 28,100
Factory rent $ 8,900
Property taxes $ 2,700
Factory administration $ 15,050
Flexible Budget:
Direct labor $16.30 * 4,000 = $65,200
Indirect labor $4,100 + $2.00 * 4,000 = $12,100
Utilities $5,100 + $0.50 * 4,000 = $7,100
Supplies $1,300 + $0.40 * 4,000 = $2,900
Equipment depreciation $18,100 + $2.50 * 4,000 = $28,100
Factory rent $8,500
Property taxes $2,700
Factory administration $13,300 + $0.60 * 4,000 = $15,700
Planning Budget
Direct labor $16.30 * 4,200 = $68,460
Indirect labor $4,100 + $2.00 * 4,200 = $12,500
Utilities $5,100 + $0.50 * 4,200 $7,200
Supplies $1,300 + $0.40 * 4,200 $2,980
Equipment depreciation $18,100 + $2.50 * 4,200 = $28,600
Factory rent $8,500
Property taxes $2,700
Factory administration $13,300 + $0.60 * 4,200 = $15,820
Final answer:
The problem involves calculating the planning budget, flexible budget, and spending variances for the Production Department of Packaging Solutions Corporation. The planning budget is based on the expected output, the flexible budget adjusts according to actual results, and the spending variances give the difference between budgeted and actual costs.
Explanation:
The question falls under the field of cost accounting in Business studies. Here, we'll need to calculate the planning budget, the flexible budget, and the spending variances for the Production Department of Packaging Solutions Corp.
1. Planning Budget: The planning budget is based on the expected labor-hours and the production output associated with those labor-hours. In this case, the planned labor hours were 4,200.
2. Flexible Budget:
The flexible budget adjusts the planning budget to reflect actual operational results. The actual hours worked in March were 4,000, which is what we'll use for the flexible budget calculations.
3. Spending Variances:
Spending variances are the differences between what was budgeted (either in the planning budget or the flexible budget) and actual results. They can be calculated by subtracting the actual costs from the budgeted costs. This will provide insights into areas where spending was over or under the budgeted amounts.
Learn more about Budget Variance Analysis here:
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B. Linking your comments to comments made by other panelists.
C. Integrating evidence into your comments.
D. Making sure that your viewpoints are clearly heard.
Answers
Answer:
Making sure that your view points are clearly heard.
Explanation:
Effective communication can be defined as the process of passing out information in a clear and concise manner. It is a means of successfully conveying information to the listener.
Effective communication helps to improve productivity among employees in an organisation. This type of communication can be enhanced by a good body language.
In the scenario described above, an effective communication can be achieved by ensuring that your viewpoints are clearly understood by the audience.
Answer:
d
Explanation: