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2 years ago

Handel Company uses the allowance method for estimating uncollectible accounts.

Business

1 answer:

NikAS [45]2 years ago

8 0

Answer:

Entries are given below

Explanation:

January 5 - Sold Merchandise

DEBIT CREDIT

Receivable - Terry $2,000

Sales Revenue $2,000

April 15 - Received $600 from terry

DEBIT CREDIT

Cash $600

Receivable - Terry $600

August 21 wrote off uncollectable debt

DEBIT CREDIT

Allowance for debt (2000-400) $1,400

Receivable - Terry $1,400

October 5 Received a check

DEBIT CREDIT

Receivable - Terry $300

Allowance for doubtful debt $300

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Determine proper classification (LO11-1) Wi-Fi, Inc., has the following selected transactions during the year. Required: Select

jekas [21]

Answer:

a. Operating activities (indirect method)

1. Pays a $20,000 account payable

2. Collects a $15,000 account receivable

3. Pays $75,000 to suppliers for inventory.

b. Investing activities

Purchases equipment for $

Loans $50,000 to a customer, accepting a note receivable.

c. Financing activities

Issues $20 million in bonds

Declares and pays a cash dividend of $100,000

d. A separate noncash activities note

Exchanges land for a new patent. Both are valued at $300,000.

Explanation:

The categorisation and their effects are explained as follows:

a. Operating activities (indirect method)

1. Pays a $20,000 account payable: This a cash outflow and its effect is a reduction in cash flow from operating activities.

2. Collects a $15,000 account receivable: This a cash inflow and its effect is an increase cash flow from operating activities.

3. Pays $75,000 to suppliers for inventory: This a cash outflow and its effect is a reduction in cash flow from operating activities.

b. Investing activities

1. Purchases equipment for $: This a cash outflow and its effect is a reduction in cash flow from investing activities.

2. Loans $50,000 to a customer, accepting a note receivable: This a cash outflow and its effect is a reduction in cash flow from investing activities.

c. Financing activities

1. Issues $20 million in bonds: This a cash inflow and its effect is an increase in cash flow from financing activities.

2. Declares and pays a cash dividend of $100,000: This a cash outflow and its effect is a reduction in cash flow from financing activities.

d. A separate noncash activities note

1. Exchanges land for a new patent. Both are valued at $300,000: This is a noncash transaction that neitheir leads to the outlow nor inflow of cash.

6 0

2 years ago

In which category do commodities belong?

postnew [5]

Answer:

D.neither short- nor long term investment

5 0

2 years ago

Read 2 more answers

Many manufacturers have quality control programs that include inspection of incoming materials for defects. Suppose a computer m

zimovet [89]

Answer:

Explanation:

There are total 5 batches and two boards are selected from each batch for inspection.

Let the boards are numbered from 1 to 5.

If the selected boards are 1 and 2, then it is represented in pair as (1, 2).

If the selected boards are 1 and 3, then it is represented in pair as (1, 3).

Similarly, other pairs can be obtained.

a) Let X be the number of defective boards observed among the two inspected.

If the boards 1 and 2 are the only defective boards in a lot of five, then

(1,2),x=2; (1,3),x=1; (1,4),x=1; (1,5),x=1;

(2,3),x=1; (2,4),x=1; (2,5),x=1;

(3,4),x=0;\ (3,5),x=0;\ (4,5),x=0.(3,4),x=0; (3,5),x=0; (4,5),x=0.

P(X=0)= 3/10 =0.3

P(X=1)={6 \over 10}=0.6P(X=1)= 6/10 =0.6

P(X=2)={1 \over 10}=0.1P(X=2)= 1/10 =0.1

x 0 1 2

p(x) 0.3 0.6 0.1

μ X =0⋅0.3+1⋅0.6+2⋅0.1=0.8

σ X ² =(0−0.8)² ⋅0.3+(1−0.8)² ⋅0.6+(2−0.8)² ⋅0.1=0.36

μₓ=0.8, σX =0.6

5 0

2 years ago

Last year, Michelson Manufacturing reported $10,250 of sales, $3,500 of operating costs other than depreciation, and $1,250 of d

Margarita [4]

Answer and Explanation:

The computation is shown below:

Particulars Last year Current year

Sales $10,250 $10,250

Operating cost -$3,500 -$3,500

Operating income $6,750 $6,750

less:

Interest expense

(6.5% of 3,500) -$227.50 -$227.50

depreciation expense -$1,250 -$1,975 ($1,250 + $725)

Earning before tax $5,272.50 $4,547.50

Less: Income tax

at 21% -$1,107.23 -$954.98

Net income $4,165.27 $3,592.53

Now the net cash flow is

Net income $4,165.27 $3,592.53

Add:

Depreciation $1,250 $1,975

Total net cash flows $5,145.27 $5,567.53

Change is $422.26

6 0

2 years ago

After spending months finalizing a marketing plan, the lead marketing manager presents it to the entire company. It soon becomes

Sauron [17]

The correct answer is A) alignment.

After spending months finalizing a marketing plan, the lead marketing manager presents it to the entire company. It soon becomes clear that the budget given in the plan is far lower than the marketing team had determined it would need. This mistake is likely a result of a lack of alignment.

This means that the marketing manager did not respect the parameters originally indicated. His numbers did not align with the necessities of the plan, which means that he did not take into consideration some important factors that at the end, affected the end result of the budget.

7 0

2 years ago