User Account

All Pages

How should magrath account for and report the accounts

Assignment Help Accounting Basics
Reference no: EM131001256

Magrath Company has an operating cycle of less than one year and provides credit terms for all of its customers. On April 1, 2011, the company factored, without recourse, some of its accounts receivable. Magrath transferred the receivables to a financial institution, and will have no further association with the receivables.
Magrath uses the allowance method to account for uncollectible accounts. During 2011, some accounts were written off as uncollectible and other accounts previously written off as uncollectible were collected.

Required:

1. How should Magrath account for and report the accounts receivable factored on April 1, 2011? Why is this accounting treatment appropriate?

2. How should Magrath account for the collection of the accounts previously written off as uncollectible?

3. What are the two basic approaches to estimating uncollectible accounts under the allowance method? What is the rationale for each approach?

Reference no: EM131001256

Questions Cloud

Mercedes was purchased by making a loan : Joe Showoff bought a Mercedes when he came to Tech as an engineering student (so that his feet would not get cold on the way to those early morning classes). The Mercedes was purchased by making a loan that was to be paid off in 20 equal, quarterly p..
Compute the average total cost-average variable cost : Compute the average total cost, average variable cost, and marginal cost of producing 60 to 72 haircuts. Draw the graph of the three curves between 60 and 72 haircuts.
Does this mean that he is totally deficient in reward power : A project manager finds that he does not have direct reward power over salaries, bonuses, work assignments, or project funding for members of the project team with whom he interfaces. Does this mean that he is totally deficient in reward power?
Economy production is characterized by neoclassical function : In an economy production is characterized by the neoclassical function =K.5N.5. Suppose it has a saving rate of .1, a population growth rate of .02, and an average depreciation rate of .03. At the steady-state value of k, is there more or less capita..
How should magrath account for and report the accounts : What are the two basic approaches to estimating uncollectible accounts under the allowance method? What is the rationale for each approach?
Endogenous growth models differ from neoclassical models : What is endogenous growth? How do endogenous growth models differ from the neoclassical models of growth? How do the implications of an increase in saving with regard to both the level and the growth rate of output differ between the neoclassical gro..
Suppose population growth is endogenous : Suppose population growth is endogenous and therefore, variable (like what we saw in the class): What does the investment requirement line look like for this model? Characterize the set of equilibria, being sure to discuss their stability or lack the..
Weibull distributed random variable : A ?uidized bed reactor through which chlorine gas ?ows has a temperature probe that fails periodically due to corrosion. The length of time (in days) during which the temperature probe functions is known to be a Weibull distributed random variable..
Explain why the classical supply curve is vertical : Explain why the classical supply curve is vertical. What are the mechanisms that ensure continued full employment of labor in the classical case? How does the Keynesian aggregate supply curve differ from the classical one? Is one of these specificati..

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd