Reference no: EM133140369
Question - Majestic Equipment Sales Company, which sells only on account, had a $132,000 balance in its Accounts Receivable and a $5,000 credit balance in its Allowance for Doubtful Accounts on December 31, 2019. During 2020, the company's sales of equipment were $828,000 and its total cash collections from customers were $784,000.
During the year, the company concluded that customers with accounts totalling $6,200 would be unable to pay, and wrote these receivables off. However, one of these customers subsequently made a payment of $850. (Note that this amount is not included in the cash collections noted above.) At the end of 2020, management decided that it would use an estimate for bad debts of 1% of its credit sales.
Required -
1. Prepare the journal entries to record all the 2020 transactions, including the adjustment for bad debts expense at year end.
2. Show how the accounts receivable section of the statement of financial position at December 31, 2020, would be presented.
3. What amount of bad debts expense would appear in the statement of income of the year ended December 31, 2020?
How much merchandise should beta purchase in august
: Beta's average mark-up on its products is 20% of the sales price. How much merchandise should Beta purchase in August
|
Prepare a detailed calculation of the division
: The Penn & Teller Partnership reports revenue of 82,000 and expenses of 91,000. Prepare a detailed calculation of the division
|
What is the amount of cash received from customers
: Discount Computers' accounts receivable increases during the year by $2.4 million. What is the amount of cash received from customers
|
Defining their strategies for specific cloud configuration
: What should someone consider when defining their strategies for their specific cloud configuration?
|
Prepare the journal entries to record all the transactions
: Prepare the journal entries to record all the 2020 transactions, including the adjustment for bad debts expense at year end
|
Discuss what ideal network performance
: Discuss what ideal network performance looks like and provide examples of metrics you would use to measure good network performance
|
Compute depreciation expense on the machinery
: Building, 25-year estimated useful life, $9,070,000 cost, $907,000 salvage value. Compute depreciation expense on the machinery for 2021
|
Examples of common attack signatures
: How Wireshark can be used for traffic capture and analysis. Examples of normal and abnormal behavior on the network. Examples of common attack signatures.
|
Compute the customer credit balances at the beginning
: A P15,000 shipment of goods to a customer on December 31, 2021, Compute the Customer credit balances at the beginning
|