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NISA [10]
2 years ago
14

Exercise 9-6 Percent of sales method; write-off LO P3 At year-end (December 31), Chan Company estimates its bad debts as 1% of i

ts annual credit sales of $487,500. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $580 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Prepare Chan's journal entries for the transactions.
Business
1 answer:
Mama L [17]2 years ago
3 0

Answer:

Explanation:

The journal entries are shown below:

On December 31:

Bad debt expense A/c Dr $4,875          ($487,500 × 1%)

        To Allowance for Doubtful debts A/c $4,875

(Being bad debt expense is recorded)

On February 1:

Allowance for doubtful accounts A/c $580

        To Accounts receivable A/c Dr  $580

(Being the uncollectible amount is recorded)

On June 5:

Accounts receivable A/c Dr  $580

     To Allowance for doubtful accounts A/c $580

(Being allowance for doubtful accounts is recorded)

On June 5:

Cash A/c Dr $580

     To Accounts receivable A/c Dr  $580

(Being the amount received)

We assume the first entry is recorded on December 31

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Management's greatest single concern is ________, which is the movement of money through an organization over a daily, weekly, m
d1i1m1o1n [39]

The movement of money through an organisation over a a daily, weekly, monthly, or yearly basis.

3 0
2 years ago
Frederick W. Taylor is speaking to a friend about scientific management. Which of the following statements might Frederick say?
zvonat [6]

Answer:

(A) The best way to increase your workers' productivity is to study their movements carefully. Figure out the fastest way to get the job done correctly, and then train all of the employees to do it the same way.

(B) Are you promoting people just because you like them? Try having managers make promotion decisions solely on the basis of a person's technical ability to do the work.

Explanation:

<em>Scientific Management theory</em> laid out by <em>Frederick W. Taylor</em> focuses on <em>effective (best) and efficient (less costly)</em> way of getting the work done.

(1) Statement A focuses on <em>motion and time studies</em> respectively.

In <em>motion studies</em>, we are concerned with elimination of unnecessary movements and activities required to perform a job. For eg, in order to manufacture 100 packets of biscuits, 5 processes are required but the processes currently used are 10, so 5 processes must be eliminated in order to save time and costs.

<em>Time studies</em> implies setting up time for performing a particular work activity. The time must be same for all the workers and could be based on the past factory time data of the activity. For eg, an average time per worker can be calculated for the activity taking into consideration the total time spent by total no. of workers on a particular work activity.

(2) Statement B focuses on promoting the persons based on their technical ability to do the work.

<em>Differential piece wage system</em> of F.W. Taylor applies perfectly to this statement. It prescribes paying workers as per the work done by them. For eg, a worker producing 15 units of a good per day would be paid $ 12 a unit, let's suppose and the worker producing less than that would be paid $ 10 a unit. So, the workers producing 15 and more units of a good, have higher technical ability with respect to the production of that good and hence, higher pay. The workers producing less than 15 units have lower technical ability and hence lower pay.

(3) Statement 3 relates to the administrative principle of "Unity of Command" laid out by Henry Fayol and hence, is not the solution statement.  

4 0
1 year ago
If D1 = $1.25, g (which is constant) = 5.5%, and P0 = $40, what is the stock's expected total return for the coming year?
trapecia [35]

Answer:

The expected totar return is: 8,625%

Explanation:

Total return, when measuring performance, is the actual rate of return of an investment or a pool of investments over a given evaluation period. Total return includes interest, capital gains, dividends and distributions realized over a given period of time. Total return is the amount of value an investor earns from a security over a specific period, typically one year.

The formula for the total stock return is the appreciation in the price plus any dividends paid, divided by the original price of the stock.

Total stock return= [(P1-P0)+D]/P0

P0: initial stock price

P1: Ending stock price (Period 1)

D0: dividend

In this case, we do not have P1. So we have to use an alternate version of the Gordon Growth Model. The GGM is mainly applied to value mature companies that are expected to grow at the same rate forever.

​      

P= D1/(r-g)​    

​    

where:

P=Current Stock Price

g=Constant growth rate in perpetuity

expected for the dividends

r=Constant cost of equity capital for that

company (or rate of return)

D1=Value of the next year’s dividends

​    

By moving terms and isolating "r" we achieve the following formula:

r= D1/P+g

r=1,25/40+0,055= 8,625%

3 0
2 years ago
Barney is 70 years old and has just retired from a career as a lawyer. He is now spending time looking back on his life and is r
Bas_tet [7]

Answer:

Life Review

Explanation:

Barney is engaged in life review process where one person return progressively to his or her consciousness of the conflicts and memories of the past which were never resolved properly, the main purpose is to re-evaluate them and to find some kind of resolutions. This is one of the most common phenomenon in which older people are engaged in their post age life where they re-call and remember their early life memories, mistakes, regrets, and unfinished tasks.

5 0
1 year ago
On November 15, Meier Company received $3,000 cash from a customer for services that were performed on November 1. According to
Leya [2.2K]

Answer:

November 1

Explanation:

As per generally accepted accounting principles (GAAP), when the goods or services are delivered the revenue should be recorded and the transaction done in all respects.

The principle of revenue recognition occurs when the revenue is realized or earned, whether cash is obtained or not and it also meets the accounting accrual basis. Realizable here means that the consumer receives the product but the payment is made later.

Therefore, the revenue should be recorded on November 1

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2 years ago
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