Reference no: EM132846440
Question - The accounts were taken from Mario Company's unadjusted trial balance on December 31, 2020
Debit Credit
Accounts receivable 5,000,000
Allowance for uncollectible Accounts 50,000
Net credit sales 20,000,000
On December 31, 2020 Mario estimates that 3% of the net credit sales will become uncollectible.
On December 31, 2021 decided to change from net credit sales method to the accounts receivable method. Mario estimated that 20% of the accounts receivable balance is considered doubtful. Net credit sales and accounts receivable at December 31, 2019 are 25,000,000 and 6,000,000 respectively.
1. What amount of allowance for doubtful accounts was reported on December 31, 2020?
a. 550,000
b. 700,000
c. 600,000
d. 650,000
2. What amount of doubtful account expense should be reported for 2021?
a. 750,000
b. 1,200,000
c. 650,000
d. 1,000,000
|
What would be the effect on the financial statements
: If those costs had been capitalized instead of expensed, what would be the effect on the financial statements
|
|
How much is the accounting profit subject to tax
: Rent received in advance that will be recognized evenly over the next three years 300,000. How much is the accounting profit subject to tax
|
|
what is the amount of depreciation expense for year ended
: If the company uses the straight-line method to depreciate the machine, what is the amount of depreciation expense for the year ended December 31, 2020
|
|
How much does she need to borrow to purchase the yacht
: On December 31, Beth Klemkosky bought a yacht for $110,000 and paid $16,000 ?down, how much does she need to borrow to purchase the yacht
|
|
What amount of doubtful account expense should be reported
: On December 31, 2021 decided to change from net credit sales method to accounts receivable method. What amount of doubtful account expense should be reported
|
|
Compute Tesla Ltd weighted average cost of capital
: The current market price of Tesla Ltd. preference share is $65. Altex Ltd. has a 30% corporate tax rate. Compute Tesla Ltd's weighted average cost of capital
|
|
What the breakeven point for XYZ
: XYZ Company has budgeted contribution margin of $6 per unit, budgeted sales of 100,000 units, and budgeted income of $480,000. What the breakeven point for XYZ
|
|
Prepare all of Ruarks journal entries
: Ruark Corporation acquired a 37 percent interest in Batson, Inc., for $275,500. Prepare all of Ruark's 2021 journal entries
|
|
Calculate net employment income
: Top Corp. paid the airfare and accomodation for you and your partner to attend a conference in New York City. Calculate Net Employment Income
|