Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
In an effort to boost sales in the current year, Roy's Gym has implemented a new program where members do not have to pay for their annual membership until the end of the year. The program seems to have substantially increased membership and revenues. Below are year-end amounts. Membership Revenues Accounts Receivable Last year $150,000 $6,000 Current year 450,000 170,000 Arnold, the owner, realizes that many members have not paid their annual membership fees by the end of the year. However, Arnold believes that no allowance for uncollectible accounts should be reported in the current year because none of the nonpaying members' accounts have proven uncollectible. Arnold wants to use the direct write-off method to record bad debts, waiting until the end of the next year before writing off any accounts. Required: 1. Do you agree with Arnold's reasoning for not reporting any allowance for future uncollectible accounts? Explain. 2. Suppose that similar programs in the past have resulted in uncollectible accounts of approximately 70%. If Arnold uses the allowance method, what should be the balance of Allowance of Uncollectible Accounts at the end of the current year? 3. Based on your answer in Requirement 2, for what amount will total assets and expenses be misstated in the current year if Arnold uses the direct write-off method? Ignore tax effects.
Kettle goods company has a unit selling price of 500 $, variable cost per unit $ 300 and fixed costs of $170,000. Compute the break even point in units and in sales dollars.
On January 1, 2013, Davie Services issued $20,000 of 8% bonds that mature in five years. They were sold at par. The bonds pay semiannual interest payments on June 30 and December 31 of each year. On June 30, 2013, how much are the total interest p..
Record the Journal Entries: The President informs you that Beverly's Building Products agrees to convert the $14,000 overdue accounts receivable (invoice No. 1119) balance to a 12% note due six months from today.
A fir that sells a single product had a beginning inventory of 4,000 units with a total cost of $28,000. 10,000 units were purchased @$9.00 each. Using FIFO what is the value of the ending inventory of 3,000 units?
Natali Vision sells 5,000 pairs of sunglasses per month at $40 each with a desired profit margin of 25%. Fixed costs are $20,000. What is the variable cost per unit?
Justin and Tiffany form the equal TJ Partnership, Justin contributes cash of $20,000 and land (fair market value of $80,000, adjusted basis of $65,000), and Tiffany contributes the assets of her sole proprietorship (value of $100,000, adjusted bas..
An employee's net pay consists of gross pay less mandatory and voluntary payroll deductions. Identify the mandatory payroll deductions and give two or three examples of common voluntary deductions. Are these deductions recognized as payroll expenses ..
If Rumper Company decides to rework the ratchers, how much should the company be willing to invest to ensure that no additional loss occurs on the sale of the ratchers?
Garrison Co. owns 20,000 of the 50,000 outstanding shares of Steele, Inc. common stock. During 2011, Steele earns $800,000 and pays cash dividends of $640,000. If the beginning balance in the investment account was $500,000, the balance at Decembe..
The new method. Williams Company experiences a 40% tax burden. Which one of the following entries would the company make to record this change?
Compare the total tax burden for Carol and the corporation with and without the S election. Consider both income and employment taxes. Carol is single and does not itemize her deductions.
Why do you think that mortgage interest and real estate taxes for a personal residence are tax deductible, but rent payments are not? Are rental payments for a business tax deductible?
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd