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2 years ago

The following events occur for The Underwood Corporation during 2021 and 2022, its first two years of operations.

Business

1 answer:

trasher [3.6K]2 years ago

5 0

Answer:

Journal Entries are given below

Explanation:

June 12, 2021

Provide services to customers on account of $41,000.

DEBIT CREDIT

Receivable account $41,000

Services Revenue $41,000

September 17, 2021

Receive $25,000 from customers on account.

DEBIT CREDIT

Cash $25,000

Receivable $25,000

December 31, 2021

Estimate that 45% of accounts receivable at the end of the year will not be received.

DEBIT CREDIT

Bad debt($16,000x45%) $7,200

Allowance for doubtful debt $7,200

March 4, 2022

Provide services to customers on account for $56,000

DEBIT CREDIT

Receivable account $56,000

Services Revenue $56,000

May 20, 2022

Receive $10,000 from customers for services provided in 2021.

DEBIT CREDIT

Cash $10,000

Receivable $10,000

July 2, 2022

Write of the remaining amounts owed from services provided in 2021.

Working: $41,000 - $25,000 - $10,000 = $6,000

DEBIT CREDIT

Allowance for doubtful debt $6,000

Account Receivable $6,000

October 19, 2022

Receive $ 45,000 from customers for services provided in 2022.

DEBIT CREDIT

Cash $45,000

Receivable $45,000

December 31, 2022

Estimate that 45% of accounts receivable at the end of the year will not be received.

DEBIT CREDIT

Bad debt (w) $3,750

Allowance for bad debt $3,750

Working:

($56,000 - $45,000) x45% = $4,950

Balance in Allowance account at 31 dec 2021 = 7,200

Bad debt written off = 6,000

Remaining balance = 1,200

Allowance for doubtful debt at 31 dec 2022 = $4,950 - $1,200

Allowance for doubtful debt at 31 dec 2022 = $3,750

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The five stages a buyer passes through in making choices about which products and services to buy is called the postpurchase beh

pychu [463]

Answer:

Purchase Decision Process

Explanation:

The purchase decision process is the one through which the a buyer makes his decision of buying a certain product.

This consumer buying process has five step which they use to make their decision, are following;

Need or Problem Recognition.
Information Search.
Evaluation of Alternatives.
Purchase Decision.
Post-Purchase Evaluation.

I hope the answer is helpful.

Thanks for asking.

8 0

1 year ago

On September 30, 2021, Athens Software began developing a software program to shield personal computers from malware and spyware

Ray Of Light [21]

Answer:

2021

Dr Research and development expense $3,600,000

Cr Cash $3,600,000

2022

Dr Research and development expense 1,500,000

Dr Software and development costs 594, 000

Cr Cash 2,094,000

B. $148,500

Explanation:

1. Preparation of the journals entry

2021

Dr Research and development expense $3,600,000

Cr Cash $3,600,000

(To record the expenses incurred on research and development)

2022

Dr Research and development expense 1,500,000

Dr Software and development costs 594, 000

Cr Cash 2,094,000

(1,500,000+594,000)

(To record the software development costs incurred)

2.Calculatation for the amortization for 2022

Using percentage of revenues method

Amortization= Current revenue/Total revenue* Software development costs

Amortization=$1,560,000/$7, 800,000*$594,000

Amortization=0.2*$594,000

Amortization=$118,800

Using straight line method

Amortization =1/Useful life* Software devel opment costs

Amortization=1/4*$594,000

Amortization=$148,500

Based on the above calculation Tmte expense amounts under straight-line method is higher . Which means that , the amortization is $148,500.

7 0

2 years ago

For lunch, Maria eats only salads or vegetarian burgers. Her weekly food budget is $36. Each salad costs $6 and each vegetarian

tensa zangetsu [6.8K]

Answer:

3 salads, 6 vegetarian burgers

Explanation:

Data provided in the question:

Weekly food budget = $36

Cost of salad, Cs = $6

Cost of vegetable burger, Cv = $3

Now,

Let the number of salads be 'S'

and, the number of vegetable burgers be 'V'

thus,

S × Cs + V × Cv = $36

S × $6 + V × $3 = $36 ............(1)

also,

2 salads and 4 vegetarian burgers will give her a utility of 8

i.e U(2, 4 ) = 8

U( S, V ) = SV

Now,

From optimal marginal utility condition

Marginal rate of substitution = $\frac{MU_S}{MU_V}=\frac{Cs}{Cv}$

$\frac{V}{S}=\frac{6}{3}$

V = 2S ..........(2)

substituting the above value in 1

S × $6 + 2S × $3 = $36

6S + 6S = 36

12S = 36

S = 3

substituting S in (2)

V = 2(3)

V = 6

Hence,

3 salads, 6 vegetarian burgers

4 0

2 years ago

You are buying and reselling items found at your local thrift shop. You found an antique pitcher for sale. If you need a 27% mar

GrogVix [38]

Answer:

The most you can pay for the pitcher is $17.32

Explanation:

A mark up is a percentage that is always applied on the cost to come up at a required gain over cost. The cost is always taken to be 100% when apply a mark up on cost.

If the mark up is of 27% and cost is 100% then a selling price of 22 will be equal to cost + markup.

Let cost be x.

Selling price = Cost + Mark up

22 = 100% * x + 27% * x

22 = 1x + 0.27x

22 = 1.27 x

22/1.27 = x

x = $17.3228 rounded off to $17.32

7 0

2 years ago

Withdrawal of PartnerLane Stevens is to retire from the partnership of Stevens and Associates as of March 31, the end of the cur

goblinko [34]

Answer:

Explanation:

The journal entries are presented below:

a. Merchandise Inventory $22,300

To Allowance for Doubtful Accounts A/c $1,300

To Lane Stevens, Capital A/c $9,000

To Cherrie Ford, Capital A/c $6,000

To LaMarcus Rollins, Capital A/c $6,000

(Being the revaluation of assets is recorded)

The computation is shown below:

= $22,300 - $1,300

= $21,000

And 21,000 is distributed in 3:2:2 ratio

b. Lane Stevens, Capital A/c Dr $159,000

To Notes Receivable A/c $100,000

To Cash A/c $59,000

(Being the withdrawn amount is recorded)

The lane Stevens capital would be

= $150,000 + $9,000

= $59,000

4 0

2 years ago