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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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Joy Manufacturing Company needs to know its anticipated cash inflows for the next quarter by month. Cash sales are 25 percent of

Basile [38]

Answer:

Total cash collection= $30,250

Explanation:

Giving the following information:

Cash sales are 25 percent of total sales each month.

Sales on account:

50 percent in the month of the sale

30 percent in the month after the sale

20 percent two months after the sale.

Sales:

January $20,000

February $10,000

March $40,000

We need to calculate the cash collection for March:

Sales on cash March= 40,000*0.25= 10,000

Sales on account March= (40,000*0.75)*0.5= 15,000

Sales on account February= (10,000*0.75)*0.3= 2,250

Sales on account January= (20,000*0.75)*0.2= 3,000

Total cash collection= $30,250

3 0

2 years ago

Before prorating the manufacturing overhead costs at the end of 2020, the Cost of Goods Sold and Finished Goods Inventory accoun

AnnZ [28]

Answer:

$2069

Explanation:

Given

Applied overhead costs of Goods sold = $59,300

Applied overhead cost of finished goods = $38,000

Overhead Balance = $97,300

Overhead Cost = $92,000

Overapplied Overhead = Overhead Balance - Overhead Cost

Overapplied Overhead = $97,300 - $92,000

Overapplied Overhead = $5,300

Allocated Amount = (Applied Overhead * Finished Goods /(Overapplied Overhead)

Allocated Amount = ($5,300 * $38,000) ($59,300 + $38,000)

Allocated Amount = ($5,300 * 38,000) (97,300)

Allocated Amount = $2069

5 0

2 years ago

Read 2 more answers

Suppose you receive at the end of each year for the next three years. a. If the interest rate is , what is the present value of

Furkat [3]

Answer:

the question is missing the numbers, so I looked for a similar question:

Suppose you receive $100 at the end of each year for the next three years. a. If the interest rate is 8%, what is the present value of these cash flows? (Answer: $257) b. What is the future value in three years of the present value you computed in (a)? (Answer: $324.61) c. Suppose you deposit the cash flows in a bank account that pays 8% interest per year. What is the balance in the account at the end of each of the next three years (after your deposit is made)? How does the final bank balance compare with your answer in (b)?

a) PV = $100/1.08 + $100/1.08² + $100/1.08³ = $257.71

b) FV = $257.71 x (1 + 8%)³ = $324.64

c) FV = ($100 x 1.08²) + ($100 x 1.08) + $100 = $324.64

it is exactly the same as the answer for (b)

5 0

2 years ago

Greystone Group is looking to purchase Heartland Hotels, Inc. Greystone plans to use $5 million in cash and finance $20 million

kramer

Answer:

Leverage buyout

Explanation:

Leverage buyout refers to the acquisition of another company using debt as the main source of financing the deal. The acquiring company borrows from various sources and will often use the assets of the acquired company as collateral. In leverage buyout, the acquiring entity borrows up to 80 percent or more and finances the balance with its equity.

The use of debt enhances the rate of return of the acquiring firm. Greystone Group is using 5 million of its funds and borrowing 20 million. The debts represent 80 percent of the cost of acquisition. The acquiring entity can achieve a higher rate of return by using as little of its funds as possible.

5 0

2 years ago

Charlie’s Crispy Chicken (CCC) operates a fast-food restaurant. When accounting for its first year of business, CCC created seve

denis-greek [22]

Answer:

Charlie’s Crispy Chicken (CCC) Balance sheet at September 30

Assets

Non- Current Assets

Equipment 49,000

Land 23,400

Total Non- Current Assets 72,400

Current Assets

Supplies 2,300

Cash 2,300

Total Current Assets 4,600

Total Assets 77,000

Equity and Liabilities

Equity

Common Stock 36,000

Retained Earnings 3,900

Total Equity 39,900

Liabilities

Non-current Liabilities

Note Payable (long-term) 34,000

Total Non-current Liabilities 34,000

Current Liabilities

Accounts Payable 2,900

Salaries and Wages Payable 200

Total Current Liabilities 3,100

Total Equity and Liabilities 77,000

Explanation:

When preparing a Balance Sheet, it is important to remember the Accounting equation : Assets = Equity + Liabilities

4 0

2 years ago