Gomez Corp. uses the allowance method to account for uncollectibles. On January 31, it wrote off an $1,600 account of a customer, C. Green. On March 9, it receives a $1,100 payment from Green.
1. Prepare the journal entry or entries for January 31
2. Prepare the journal entry or entries for March 9; assume no additional money is expected from Green.

Answers

Answer 1

Answer: Please see explanation for answers

Explanation:

1. Journal entry to record bad debt on January 31st

Date            Account Titles and Explanation            Debit            Credit

Jan. 31st      Allowance for doubtful account            $1,600

Account receivables  ( Customer C. Green)                                  $1.600

2. Journal entry to record recovery of bad debt on March 9

A) To reinstate Amount previously written off

Date            Account Titles and Explanation                  Debit            Credit

March 9 Account receivables  ( Customer C. Green)    $1,100

Allowance for doubtful account                                                          $1,100

B) To record payment of account

Date            Account Titles and Explanation             Debit            Credit

March 9            Cash                                                   $1,100

   Account receivables( Customer C. Green)                                  $1,100


Related Questions

When the demand is equal or lower than the minimum efficient scale, multiple production facility locations are preferred. True False

Answers

Answer:

True

Explanation:

Glenn is an accountant who races stock cars as a hobby. This year Glenn was paid a salary of $83,000 from his employer and won $2,300 in various races. What is the effect of the racing activities on Glenn's taxable income if Glenn has also incurred $4,500 of hobby expenses this year?

Answers

The answer is 40,000

You are a U.S. investor who purchased British securities for 2,340 pounds one year ago when the British pound cost $1.52. No dividends were paid on the British securities in the past year. Your total return based on U.S. dollars was __________ if the value of the securities is now 2,440 pounds and the pound is worth $1.61.
a. 16.7%.
b. 20.0%.
c. 12.5%.
d. n/a.

Answers

Answer:

d. n/a

Explanation:

Calculation for Your total return based on U.S. dollars

Total return=(2,440 pounds*$1.61)- (2,340 pounds*$1.52)/ (2,340 pounds*$1.52)

Total return=$3,928.4-$3,556.8/$3,556.8

Total return=$371.60/$3,556.8

Total return=0.1045*100

Total return=10.45%

Therefore Your total return based on U.S. dollars was 10.45%

How much interest does a $407 investment earn at 6% over seven years?

Answers

Answer:

$170.94

Explanation:

interest is calculate using the formula

I= p x r x t

where p = principle amount: $407

r = interest rate: 6% or 0.06

t= time: 7 year

I= $407 x 0.06 x 7

I= $24.42 x 7

I= $170.94

The money lost by not working is called

Answers

it's called bankrupt

Which secondary effect of advertising refers to a change in the customer’s opinion of the product over a period of time?

Answers

The Carryover Effect in Advertising is the rate at which the effectiveness of an advertising campaign diminishes over time

During the taking of its physical inventory on December 31, Barry's Bike Shop incorrectly counted its inventory as $222,138.00 instead of the correct amount of $184,409.00. The effect on the balance sheet and income statement would be:______.
a. assets overstated by $52,094.00; retained earnings understated by $52,094.00; and net income statement understated by $52,094.00.
b. assets overstated by $223,182.00; retained earnings understated by $171,088.00; and no effect on the income statement.
c. assets, retained earnings, and net income all overstated by $52,094.00.
d. assets and retained earnings overstated by $171,088.00; and net income understated by $223,182.00.

Answers

Answer:

c. assets, retained earnings, and net income all overstated by $37,729.

Explanation:

since the ending inventory was overstated by $222,138 - $184,409 = $37,729, it means that cost of goods sold was understated by that same amount. Since COGS were less, that resulted in higher operating income and net income.

Merchandise inventory will be overstated by $37,729 (current asset), while retained earnings will also be overstated by $37,729 since net income increases retained earnings.

On June 1 of the current year, Cross Corp. issued $300,000 of 8% bonds payable at par with interest payment dates of April 1 and October 1. In its income statement for the current year ended December 31, what amount of interest expense should Cross report?
a. $14,000.
b. $6,000.
c. $12,000.
d. $8,000.

Answers

Answer: amount of interest expense  Cross  should report =a. $14,000.

Explanation:

interest expense = Principal( Face value) x Rate x period( Time)

Carrying value of the bond ( face value ) =$300,000

Rate= 8%

year ended on December, therefore The interest expense recorded would be for four months ( From June 1 to December 31 )

Therefore the Interest Expense = $300,000 x 8% x 7/12

= $300,000 x 0.08 x 7/12

= $168,000/12

$14,000

The amount of interest expense  Cross  should report at the current year end is $14,000

Last year, Big W Company reported earnings per share of $2.70 when its stock was selling for $40.50. If its earnings this year increase by 10% and the P/E ratio remains constant, what will be the price of its stock?

Answers

Answer: $‭44.55‬

Explanation:

P/E ratio last year = Market price / Earnings per share

= 40.50/2.70

= 15

PE ratio remains constant.

Earnings increase by 10% = 2.70 * 1.10 = $‭2.97‬

15 = Market Price / 2.97

Market Price = 15 * 2.97

= $‭44.55‬

Swift Co. produces footballs. It incurred the following costs this year:
Direct materials $35,000
Direct labor 31,000
Fixed manufacturing overhead 22,000
Variable manufacturing overhead 38,000
Fixed selling and administrative expenses 23,000
Variable selling and administrative expenses 14,000
What are the total product costs for the company under variable costing?
Total product costs under variable costing $ _

Answers

Answer:

Total variable cost= $104,000

Explanation:

Giving the following information:

Direct materials $35,000

Direct labor 31,000

Variable manufacturing overhead 38,000

The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).

Total variable cost= 35,000 + 31,000 + 38,000

Total variable cost= $104,000

ways to improve productivity in the workplace

Answers

You need motivation..

Xtron has few rules and procedures and prides itself on empowering lower-level employees to be nimble and responsive to its customers' rapidly changing needs. Xtron would be best described as a(n) ______ organization.

Answers

Answer:

Organic

Explanation:

From the question, we are informed about Xtron who has few rules and procedures and prides itself on empowering lower-level employees to be nimble and responsive to its customers' rapidly changing needs. In this case Xtron would be best described as a organic organization.

Organic organizations, which was set up by Tom Burns and G.M. Stalker arround 1950, organic organization can be regarded as organization that is can be embrace flexibility and have the potential to adapt well to changes, they also have

value external knowledge.

The stable and predictable base of deposited funds that are not highly sensitive to movements in market interest rates but tend to remain with the bank are called:

Answers

Answer:

Core deposits.

Explanation:

The stable and predictable base of deposited funds that are not highly sensitive to movements in market interest rates but tend to remain with the bank are called core deposits.

Basically, this type of deposit gives rise to a stable source of money (funds) used for lending by financial institutions such as banks to its customers. Core deposits include all active accounts by customers, certificate of deposits, money market deposits, time deposits, demand deposits, etc.

The main purpose of the core deposits is to ensure there are predictable costs and it can be used to measure a customer's loyalty.

In U.S. price support programs, the "loan rate" is:______.
a. determined by Federal Reserve policy.
b. the interest rate a farmer must pay if he borrows from the government with his crop as collateral.
c. the difference between the market price and the target price.
d. the proportion of the farmer's crop he can loan to the government.
e. the effective price (i.e. price floor) for the commodity to ensure loan repayment.

Answers

Answer: E. the effective price (i.e. price floor) for the commodity to ensure loan repayment

Explanation:

The Price Support Programm is a policy by the government that is used in order to help farmers when there's a reduction in prices of agricultural products by giving out insurance to the farmers.

In U.S. price support programs, the "loan rate" is simply the effective price (i.e. price floor) for the commodity to ensure loan repayment.

In general, the consumers who seek out Louis Vuitton branded products are more likely to be _______.
a. price-conscious.b. prestige-sensitive.c. bargain shoppers.d. cost-sensitive.e. value-conscious.

Answers

Answer:

c).prestige-sensitive

Explanation:

Prestige sensitivity can be regarded as

favourable perceptions of price which is as a result of prominence as well status of the company that produce the product. Prestige-sensitive buyers prefer to go for product with prominence and status. It should be noted that In general, the consumers who seek out Louis Vuitton branded products are more likely to be prestige-sensitive.

Question 10 of 10
Harland just got his second major credit card, so his credit score rose from
671 to 711. According to the following table for a $150,000 mortgage, how
much less per year would Harland have to pay on a $150,000 mortgage with
the new credit score?
FICO
score
720-850
Interest
rate
5.59%
Monthly
payment
$860
700-719
5.71%
$872
$924
675-699
6.25%
7.40%
620-674
560-619
500-559
8.53%
$1039
$1157
$1238
9.29%

Answers

Answer: 2004

Explanation:

Question 3 of 10
When a nation's standards of financial reporting are transparent and effective:
OA. citizens tend to have greater confidence in the economy.
B. businesses are unable to foster good relationships with
customers
DC. businesses in the country tend to lose profits and resources.
OD. the country's laws can be more easily violated.

Answers

Answer:

A. citizens tend to have greater confidence in the economy.

Explanation:

When a nation's standards of financial reporting are transparent and effective, by extension, the citizens tend to have greater confidence in the economy.

This is because when the government are transparent about the financial affairs of the nation, the citizens are confident in the economy

When reflecting upon the newer generation, each older generation says the same thing:

Answers

Answer:

live long boomers

Explanation:

An early 1970s government study ("Work in America") identified three chief sources of worker dissatisfaction. Which of the following is one of those sources?

Answers

Answer:

The right approach is "The rigidity of rules and regulations".

Explanation:

Laws, as well as regulations throughout the red tape, are also rigid as well as unyielding. Clear, simple to comprehend. Because once we speak about administrative management, there have been many disadvantages to something like the mere implementation of that kind of principle to administer any organization.

Maybe that's why the aforementioned is indeed the easiest alternative.

If the abnormal return for a stock during the first week is +5 percent and +3 percent during the second week, what is the abnormal return for the two-week period?
A) 5 percent
B) 3 percent
C) 8.15 percent
D) 8 percent

Answers

Answer:

C) 8.15 percent

Explanation:

The computation of the abnormal return for the two week period is as follows:

Abnormal return is

= (1 + first week abnormal return) × (1 + second week abnormal return) - 1

= (1 + 5%) × (1 + 3%) - 1

= 1.0815% - 1

= 8.15%

Hence, the correct option is c.

We simply applied the above formula so that the correct value could come

And, the same is to be considered

Because price and quantity supplied are directly​ related, we would expect the sign of the price elasticity of supply to be:_________

Answers

Answer:

Positive

Explanation:

Price elasticity is the measure to assess the responsiveness of the supply of a good or service after changing the price of the good or service.

According to basic principles of economics, the price and supply of good or services are directly proportional, it means that if the price increases the supply of good increases and vice versa. The sign of the price elasticity will be positive because they are directly related.

Form example

At Price $5 supply is 200 units

At price $6 supply 250 units

Calculate the change in price and change in supply as well.

Cange in price = ($6 - $5) / 5 = 0.2 = 20%

Cange in supply = 250 units - 200 units = 50 units / 200 unit = 0.25 = 25%

Price elasticity of supply = Change in supply / Change in price

Price elasticity of supply = 25% / 20%

Price elasticity of supply = 1.25

Hence, the sign is positive

an increase In long run aggregate supply can be expected to _______ the price level and ______ the natural rate of unemployment.​

Answers

Answer:

fall is the answer for both blanks

The FICA (social security) tax is a matching tax with a portion paid by both the employer and the employee.
A. True
B. False

Answers

Answer:

A) true

Explanation:

FICA Tax can be regarded as matching tax, it is been paid by the employees and employers at equal rate. The tax can be divided into Social Security tax as well as Medicare tax. It shouldbe noted the FICA (social security) tax is a matching tax with a portion paid by both the employer and the employee.

The Office Supplies account is Select one: a. an asset, and it has a normal credit balance. b. a revenue, and it has a normal credit balance. c. an expense, and it has a normal credit balance. d. an asset, and it has a normal debit balance. e. a revenue, and it has a normal debit balance.

Answers

Answer:

C)

Explanation:

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