Uncollectible Accounts, Using Direct Write-Off Method Illustrate the effects on the accounts and financial statements of the fol
lowing transactions in the accounts of Valley Care & Supplies Co., a local hospital supply company that uses the direct write-off method of accounting for uncollectible receivables:
March 18. Recelived $29,000 on an account.
Balance Sheet
Statement of Cash Assets Liabilities + Stockholders' Equity
Flows
Mar. 18.
Statement of Cash Flows Income Statement
March 18. Wrote off the remaining $49,020 owed on account as uncollectible.
Balance Sheet
Statement of Cash Assets Liabilities + Stockholders' Equity
Flows
Mar. 18.
Statement of Cash Flows Income Statement
March 18. Recelived $29,000 on an account.
Balance Sheet
Statement of Cash Assets Liabilities + Stockholders' Equity
Flows
Mar. 18.
Statement of Cash Flows Income Statement
March 18. Wrote off the remaining $49,020 owed on account as uncollectible.
Balance Sheet
Statement of Cash Assets Liabilities + Stockholders' Equity
Flows
Mar. 18.
Statement of Cash Flows Income Statement
1 answer:
Answer and Explanation:
The effect of the given transaction is shown in the attachment below. Please find the attachment
As we know that
Accounting equation is
Total assets = Total liabilities + total stockholder equity
So,
1. In the first transaction there is an increased in assets by $29,000 and decreased the assets by $29,000 plus the same is to be recorded in the operating section of the cash flow statement
2. In the second transaction, there is decreased in asset for $49,020 also the retained earning is also decreased by same amount plus there is a bad debt expense also
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Complete question:
The marginal utility of the last unit of apples consumed is 12 and the marginal utility of the last unit of bananas consumed is 8. What set of prices for apples and bananas, respectively, would be consistent with consumer equilibrium
a. $8 and $12
b. $6 and $4
c. $16 and $9
d. $4 and $6
Answer:
$6 and $4 set of prices for apples and bananas, respectively, would be consistent with consumer equilibrium.
Explanation:
Given,
The marginal utility of the last unit of apples consumed = 12
The marginal utility of the last unit of bananas consumed = 8
Now ,
To find :
The market level for apples and bananas, respectively, will be compatible with the consumer's equilibrium:
= = $6
= = $4
$6 and $4 set of prices for apples and bananas, respectively, would be consistent with consumer equilibrium.
Answer:
210
Explanation:
Let us consider that x is the number of soldiers produced each week and y is number of trains produced each week.
Also, weekly revenues and costs can be expressed in terms of the decision variables x and y.
Then,
Hence the profit which we want to maximize is given by,
Now the constraints are given as,
Finishing Constraint:
Each week, no more than 100 hours of finishing time may be used.
Carpentry Constraint:
Each week, no more than 80 hours of carpentry time may be used.
Demand Constraint:
Because of limited demand, at most 40 soldiers should be produced each week.
Combining the sign restrictions and with the objective function and constraints,and yield the following optimization model:
Such that,
First convert the given inequalities into equalities:
From equation (1):
If x=0 in equation (1) then (0,100)
If y=0 in equation (1) then (50,0)
From equation (2):
If x=0 in equation (2) then (0,80)
If y=0 in equation (2) then (80,0)
From equation (3):
Equation (3) is the line passing through the point x=40.
Therefore, the given LPP has a feasible solution first image
The optimum solution for the given LPP is obtained as follows in the second image
The optimal solution to this problem is,
And the optimum values are .
Let c be the contribution to profit by each train. We need to find the values of c for which the current, basis remain optimal. Currently c is 2, and each iso-profit line has the form
3x + 2y = constant
y = 3x/2 +constant/ 2
And so, each iso-profit line has a slope of .
From the graph we can see that if a change in c causes the isoprofit lines to be flatter than the carpentry constraint, then the optimal solution will change from the current optimal solution to a new optimal solution, If the profit for each train is c, the slope of each isoprofit line will be.
-3/c
Because the slope of the carpentry constraint is –1, the isoprofit lines will be flatter than the carpentry constraint.
If,
-3/c<-1
c >3
and the current basis will no longer be optimal. The new optimal solution will be point A of the graph.
If the is oprofit lines are steeper than the finishing constraint, then the optimal solution will change from point B to point C. The slope of the finishing constraint is –2.
If,
-3/c < -2 or
C < 1.5
Then the current basis is no longer optimal and point C,(40,20), will be optimal. Hence when the contribution to the profit for trains is between $1.50 and $3, the current basis remains optimal.
Again, consider the contribution to the profit for trains is $2.50, then the decision variables remain the same since the contribution to the profit for trains is between $1.50 and $3. And the optimal solution is given by,
z = 3× (20) + 2.5 × (60)
= 60 + 150
= 210
