Reference no: EM131266405
On January 1, Year4 the Accounts Receivable and the Allowance for Doubtful Accounts carried NORMAL balances of $30,000 and $500, respectively.
(The 30,000 is a positive asset and the 500 is a negative asset.)
During the year the company reported $70,000 of credit sales.
There were $550 of receivables written-off as uncollectible in Year4.
Cash collections of receivables amounted to $74,550.
The company recorded $700 of bad debt expense for Year4.
What will be the ADJUSTED balance in the allowance for uncollectible accounts at the end of Year4?
A. $550 normal balance [credit balance]
B. $650 normal balance [credit balance]
C. $50 normal balance [credit balance]
D. $700 normal balance [credit balance]
E. $1200 normal balance [credit balance]
|
What is the payback period for the new machine
: A company is considering the purchase of a new machine for $54,000. Management predicts that the machine can produce sales of $16,600 each year for the next 10 years. Expenses are expected to include direct materials, direct labor, and factory overhe..
|
|
Decrease in net income by replacing the current machine
: Granfield Company has a piece of manufacturing equipment with a book value of $41,500 and a remaining useful life of four years. At the end of the four years the equipment will have a zero salvage value. The market value of the equipment is currently..
|
|
Compute the net present value of the machine
: Poe Company is considering the purchase of new equipment costing $85,500. The projected annual cash inflows are $35,700, to be received at the end of each year. The machine has a useful life of 4 years and no salvage value. Poe requires a 10% return ..
|
|
What amount will lessee report as a lease obligation
: Lessee Company enters into a lease on January 1, 20X2 that is accounted for as a capital lease. The lease calls for quarterly payments of $15,000, beginning on January 1, 20X2, and continuing for 5 years. The last payment is due on October 1, 20X6. T..
|
|
Adjusted balance in allowance for uncollectible accounts
: On January 1, Year4 the Accounts Receivable and the Allowance for Doubtful Accounts carried NORMAL balances of $30,000 and $500, respectively. What will be the ADJUSTED balance in the allowance for uncollectible accounts at the end of Year4?
|
|
What is the net realizable value of accounts receivable
: Coco Corp. has the following selected account balances as of 12/31/Year5: Cash $13,500 Accounts receivable $128,000 Allowance for uncollectible accounts $12,000 (NORMAL, credit balance- a negative asset) Inventory $38,000 The first transaction of Yea..
|
|
Bad debt expense for on the income statement
: Ortiz Inc. has the following balances before doing adjusting entries for the year ended 12/31/Year6. All sales were on credit (and were recorded earlier in the period.). What will Ortiz Inc. report as bad debt expense for on the income statement for ..
|
|
What were odonnel''s write-offs during year
: Odonnel Inc. had the following account balances for Year4 and Year3. 12/31/Year4 12/31/Year3 Accounts receivable (balance in the account, not net) 82,400 65,700 Allowance for doubtful accounts (normal, credit, negative asset balance) 5,870 3,460 Bad ..
|
|
Uses the periodic inventory method
: Carstow uses the periodic inventory method. (In the periodic method it is assumed that all sales occur the last day of the accounting period - or after all purchases during the period.) Carstow had the following inventory transactions in May, of the ..
|