Answer and Explanation:
The Journal entry is shown below:-
Bad debts expense Dr, $18,000 ($900,000 × 2%)
To Allowance for doubtful accounts $18,000
(Being bad debt expense for the year is recorded)
Here we debited the bad debt expenses as it increased the expenses and we credited the allowance for doubtful accounts as it decrease the value of the assets
Which of the following is the best characterization of sociocultural forces? a firm's culture, norms, and values a competitor's culture, norms, and values a focus group's culture, norms, and values a society's culture, norms, and values
Answer:
a society's culture, norms, and values
Explanation:
From the name socio + cultural indicates best how the culture, norms and values affect a society.
Often times the term culture refers to the general way of life of the members of a particular society. While the term norms and values refers to acceptable standards within a particular society. All this terms characterizes sociocultural forces.
Webster Corporation is preparing its cash budget for April. The March 31 cash balance is $36,400. Cashreceipts are expected to be $641,000 and cash payments for purchases are expected to be $608,500.Other cash expenses expected are $27,000 selling and $33,500 general and administrative. The companydesires a minimum cash balance at the end of each month of $30,000. If necessary, the companyborrows enough cash to meet the minimum using a short-term note. The amount Webster must borrowduring April is:A) $0.B) $21,600.C) $8,400.D) $98,900.E) $58,000.
Answer:
Webster Corporation
Amount to borrow in April
B) $21,600.
Explanation:
a) Webster Corporation
Cash Budget for the month of April
Beginning Cash balance $36,400
Cash receipts 641,000
Total receipts $677,400
Cash expenses:
Purchases $608,500
Others 27,000
Selling & Admin. 33,500 669,000
Balance 8,400
Borrowing 21,600
Minimum cash balance $30,000
b) Webster's cash budget for April shows that it needs to borrow $21,600 in order to meet the minimum cash balance of $30,000. This is because the company does not generate enough cash in April to pay for expenses and meet minimum requirements for cash balance every month. The preparation of Webster Corporation's Cash Budget is a way of planning for the occurrence of the cash shortage that necessitated the borrowing.
A causal approach should be used when:_____.
1. there exists a knowledge of the research problem, the decision alternatives, and the relevant variables.
2. only speculative hypotheses exist.
3. the research methods can be highly flexible.
4. the researcher must show that one variable determines the values of another variable.
a. 1
b. 2
c. 1 and 4
d. 4
The correct answer is D. 4
Explanation:
In research, a causal approach is a research method used when the variables the researcher is studying have a cause/effect relationship. This means one of the variables originates the other (cause) or it is the consequence (effect). For example, if the researcher is studying the effects of literacy rate in access to job opportunities, the approach is causal. In this context, to use to approach it is key that the researcher wants to show one variable or factor determines the other through a cause/effect relationship. Thus, this is used when "the researcher must show that one variable determines the values of another variable".
Suppose you own 50,000 shares of common stock in a firm with 2.5 million total shares outstanding. The firm announces a plan to sell an additional 1 million shares through a rights offering. The market value of the stock is $ 35 before the rights offering and the new shares are being offered to existing shareholders at a $ 5 discount. a.If you exercise your preemptive rights, how many of the new shares can you purchase? b.What is the market value of the firm after the rights offering? c.What is your total investment in the firm after the rights offering? How is your investment split between original shares and new shares? d.If you decide not to exercise your preemptive rights rather sell your rights, what is your investment in the firm after the rights offering? How is this split between old shares and rights?
Answer:
20,000 ; $117.5 million; $2,350,000; $1678500; $1,078,500
Explanation:
Given the following :
Number of common stock shares owned = 50,000
outstanding shares = 2.5 million
Additional shares = 1 million
Market value of stock before rights offering = $35
Net stock price for existing shareholders ($5 discount) = $(35 - 5) = $30
A.) If you exercise your preemptive rights, how many of the new shares can you purchase?
Number of stocks / (outstanding shares ÷ additional shares)
[(50,000) ÷ (2.5 ÷1)] = 50,000/2.5 = 20,000
B.) b.What is the market value of the firm after the rights offering?
(Outstanding shares * market price) + ( additional shares * discount price)
(2.5million * $35) + (1 million * $30)
$87.5 + $30 = $117.5 million
C.) What is your total investment in the firm after the rights offering?
(stock shares held before offering * market price) + ( new shares that can be purchased * discount price)
(50,000 * $35) + (20,000 * $30)
1750000 + $600,000 = $2,350,000
D.)
Number of common stock shares *new market value after Issuance
New Market value after Issuance :
Market value of firm after offering / (outstanding + additional shares)
$117,500,000 / (2.5+1)million
$117,500,000 / 3,500,000
= $33.57
50,000 * $33.57 = $1678500
11)
Revenue from right sale :
Number of right shares * discount price
20,000 * $30 = $600,000
Value of proceed :
$1678500 - $600,000 = $1,078,500
If the price of biscuit per packet increased from N250 to N500 and the quantity bought per week decreased from 300 to 200 packets, determine the elasticity of demand for biscuit.
Answer:
The the elasticity of demand for biscuit is -0.33.
Explanation:
Elasticity demand is the degree of responsiveness of quantity demanded for a commodity to a change in the price of that commodity.
The elasticity of demand for biscuit can be calculated using the following elasticity of demand formula:
Elasticity of demand = Percentage change in Qd / Percentage change in price .................. (1)
Where Qd denotes quantity demanded.
Percentage change in Qd = [(New Quantity - Old Quantity) / Old quantity] * 100 = [(200 - 300) / 300] * 100 = -33.33%
Percentage change in price = [(New price - Old price) / Old price] * 100 = [(N500 - N250) / N250] * 100 = 100%
Substituting the values into equation (1), we have:
Elasticity of demand = -33.33% / 100% = - 0.33
Therefore, the the elasticity of demand for biscuit is -0.33.
Note that since -0.33 in absolute term |-0.33| is less than 1, the demand for biscuit is inelastic. That is, the change in the quantity demanded for biscuit responds less than the change in its price.
XYZ Company has issued 10%, $100 par non-cumulative preferred stock. Two years ago, XYZ omitted its preferred dividend. Last year, it paid a preferred dividend of $5 per share. This year, XYZ wishes to pay a common dividend. In order to make the distribution to common shareholders, each preferred share must be paid a dividend of:
Answer:
In order to make the distribution to common shareholders, each preferred share must be paid a dividend of:
$5 per share.
Explanation:
The preferred stock is non-cumulative. This implies that XYZ's preferred stockholders are not being owed for the previous two year's dividend that was not paid. Non-cumulative preferred stock does not attract dividend arrears whenever it was not declared. It is cumulative preferred stock that attracts such arrears to be carried forward until they are paid.
Juniper Company uses a perpetual inventory system and the gross method of accounting for purchases. The company purchased $9,750 of merchandise on August 7 with terms 1/10, n/30. On August 11, it returned $1,500 worth of merchandise. On August 16, it paid the full amount due. The amount of the cash paid on August 16 is:________.
A. Debit Merchandise Inventory $1500; Credit Sales Returns $1500.
B. Debit Accounts Payable $1500; Credit Purchase Returns $1500.
C. Debit Accounts Payable $1500; Credit Cash $1500.
D. Debit Accounts Payable $1500; Credit Merchandise Inventory $1500.
E. Debit Merchandise Inventory $1500; Credit Cash $1500.
Answer:
Explanation:
The term of transaction is 1/10 , n 30
This means that if Juniper pays up for the merchandise within 10 days after purchase , it is entitled to 1 % of the invoice value or else he should pay up the entire invoice value without a discount not late than 30 days after the purchase.
If the date of transaction is August 7 and the payment day is August 16 , which is 9 days interval , this means that Juniper is entitled to 1% discount
Workings
Inventory purchased =9,750
Returns = (1,500)
8,250
Entitled discount = 1% (82.5)
Final payment 8,167.5
B
The journal entry for the returned merchandise
Debit account payable $1,500
Credit Merchandise inventory $1,500
The amount of cash paid on August 16 is:
Debit account payable $1,500
Credit Merchandise inventory $1,500
Thus, option D is correct.
The Journal entry will be:
Journal entries are added to the broad ledger as part of the accountancy cycle. Each general ledger report will contain the payment date, amount, impacted institutions with account numbers, and explanation.
Since there are 9 days between the transaction's completion date of August 7 and the payment's due day of August 16, Juniper is entitled to a 1% discount.
The amount of cash paid on August 16 is:
Account payable (Debit) - $1,500
Credit Merchandise inventory (Credit) - $1,500
Therefore, option D is correct.
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Most home insurance policies cover jewelry for $1,000 and silverware for $2,500 unless items are covered with additional insurance. If $4,700 worth of jewelry and $6,000 worth of silverware were stolen from a family, what amount of the claim would not be covered by insurance?
Answer: $7200
Explanation:
From the question, we are informed that most home insurance policies cover jewelry for $1,000 and silverware for $2,500 unless items are covered with additional insurance. If $4,700 worth of jewelry and $6,000 worth of silverware were stolen from a family.
The amount of claim that would not be covered by the insurance will be:
= ($4,700 - 1,000) + ($6,000 - 2,500)
= $3,700 + $3,500
= $7,200
If throughout an accounting period the fees for legal services paid in advance by clients are recorded in an account called Unearned Legal Fees, the end-of-period adjusting entry to record the portion of those fees that has been earned is
Answer:
e. Debit Unearned Legal Fees and credit Legal Fees Earned.
Explanation:
As we know that unearned legal fees contain a credit balance as it is a liability
Now if the portion of an unearned legal fees is earned so the portion of it would be debited and on the other side the legal fees is credited
The journal entry is shown below:
Unearned legal fees Dr XXXXX
To Legal fees earned XXXXX
(Being the adjusting entry is passed)
Hence, the correct option is e.
The four important characteristics that define a perfectly competitive market are: Multiple Choice standardized good, full information, no transactions costs, participants are price takers. standardized information, finished good, no transactions costs, participants are price makers. standardized good, same information for buyer and seller, low transactions costs, participants are price takers. standardized good, full information, no transactions costs, participants are price makers.
Answer:
standardized good, full information, no transactions costs, participants are price takers.
Explanation:
Perfectly competitive markets are theoretical, because even commodities' markets (e.g. corn, oil, etc.) do not comply 100% with all the characteristics of a perfectly competitive market, but are close enough to consider them as such.
The 5 characteristics of perfectly competitive markets are:
Many participants (many buyers and sellers)Standardized goods or servicesZero transaction costsNo barriers to entryAll participants can access perfect informationAs I said before, no market complies 100% with these requirements, but some commodities' markets get close enough, but even there:
commodity traders charge a transaction feecapital is a great barrier to entry that cannot be eliminated, e.g. it costs millions to drill and sell oilnot all participants will be able to access perfect informationA church put advertisements in its weekly bulletins to encourage its members to participate in the services by telling a brief, positive story about how fellow members have helped them during times of need. Jack volunteered and shared his story during a service. Afterwards, he felt joyous. Was this an exchange in a marketing sense
Answer: Yes
Explanation: In the scenario shared above, an element of exchange exists which is the key aim of marketing by providing a trade platform for consumers and sellers to coexist and make exchange of goods and services for money, satisfaction or other things in return. In the scenario above, the church provided a marketing platform for people to share their thought and air their views. Jack made use of the platform and shared his thought and had a feeling of satisfaction and church members also read in other to learn or derive pleasure and the cycle continues.
The two best signs of good strategy execution are whether: the company is challenging its current performance targets and whether value chain activities are fully integrated within the strategic response criteria. managers are personally leading the change process and whether they are meeting deadlines set for budgetary requirements. the company is meeting or beating its performance targets and whether it is performing value chain activities in a manner that is conducive to companywide operating excellence. managers are fully behind the changes and whether the company's value chain managers are executing them diligently. the company identifies what the organization must do and how to make the necessary internal changes.
Answer: the company is meeting or beating its performance targets and whether it is performing value chain activities in a manner that is conducive to companywide operating excellence.
Explanation:
The execution of a good strategy requires a team effort with every managers using their authority to ensure that all the workers under them take active part in the execution of the strategy.
The two best signs of good strategy execution are whether the company is meeting or beating its performance targets and also whether the company is performing value chain activities in a manner which is conducive to companywide operating excellence.
Austin's total fixed cost at the bakery is $3,600 a month. Austin employs 20 workers and pays each worker $8 an hour. The marginal product of the twentieth worker is 12 iced cupcakes an hour. What is the marginal cost of the last cupcake produced by the last worker Austin hired?
Answer:
$0.66
Explanation:
Marginal cost is the cost of producing one extra unit of a product.
if each worker is paid $8, then the marginal cost of producing the last cupcake = $8 / 12 = $0.66
Cindy's Ceramics engaged in a like-kind exchange that resulted in a $3,000 gain. In addition to the like-kind property received in the transaction, Cindy also received $5,000 cash. Cindy will have to recognize $
Answer:
$3,000
Explanation:
Data provided in the question
Gain received while exchanged = $3,000
Received cash = $5,000
Based on the above information, the Cindy recognize the gain i.e $3,000 which is received while exchanged it
Therefore in the given case, the Cindy have to recognize the gain for $3,000
The cash amount received should be ignored
Tulip Corporation purchased equipment for $58,000 on January 1, 2017. On December 31, 2019, the equipment was sold for $24,000. Accumulated Depreciation as of December 31, 2019 was $33,000. Calculate gain or loss on the sale.
Answer:
question is not clear please send clear question
Some argue that the Federal Reserve lowering interest rates from mid-2000 to the end of 2002 greatly increased the money supply; however, opportunities to invest yielded paltry returns leading bankers to offer _____ in order to earn a higher return.
Answer: Subprime mortgage loans
Explanation: In other earn higher return, subprime mortgage loans provides bankers the opportunity to charge borrowers higher rates on loans offered. This is because subprime mortgage loans are usually offered to credit defaulters. That is, customers with low credit score due to inconsistencies in their credit repayment due to late payment and poor credit history. Due to poor credit score and low tendency to repay borrowed amount, hence posing a high risk of recouping their fund, such borrowers would find it difficult to qualify for conventional mortgage plans. Subprime mortgages offers a lifeline though but at higher rates.
According to the dividend growth model, an increase in which of the following will increase the current value of a stock all other things equal? I. dividend amount II. discount rate III. dividend growth rate
Answer: (1.) Dividend amount (111.) Dividend growth rate
Explanation:
The divided growth model is defined by the relation:
Po = D1 / (r - g)
Where Po = current price of stock
r = discount rate and g = growth rate of the stock
D1 = Next year's Dividend
From the Gordon model; The price of stock is directly proportional to the Dividend amount, therefore, an increase in Dividend amount will result in current value of stock and vice versa.
Since the current value of stock increases as Dividend amount increases, therefore an increase in the growth rate of the Dividend will also favor increase in the current value of stock.
Based on the dividend growth model, when the following are increased, the value of the stock would increase:
I. dividend amount III. dividend growth rateThe dividend growth model is calculated as:
Value of stock = Dividend / ( Discount rate - Growth rate)
For the value of stock to be high, the numerator will have to increase or the denominator will have to decrease.
Increasing the dividend would increase the numerator and increasing the growth rate would decrease the denominator, both of which would increase stock value.
In conclusion, increasing dividend amount and growth rate will increase the value of stock.
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Danny, a marketing manager for a large multinational company, has been held responsible for the poor management of a crucial project. The company had suffered huge losses because of this project, and Danny has been having a stressful week dealing with his boss and his clients. Danny goes for a movie with his friends to unwind and get his mind off work. Which of the following strategies has Danny used in this scenario?
A. Self-control.
B. Reappraisal.
C. Acceptance of responsibility.
D. Escape-avoidance.
Answer:
D. Escape-avoidance.
Explanation:
-Self-control is when a person is able to manage his/her emotions and behaviors when facing an impulse.
-Reappraisal is when you evaluate a situation again to make changes and find new meanings.
-Acceptance of responsability is when you take ownership for what you do.
-Escape-avoidance is when you avoid dealing with things.
According to this, the answer is that Danny is using in this scenario escape-avoidance because he is avoiding dealing with the problem he has at work by going for a movie with his friends.
The CEO of peripheral company QuickDrive uses a leadership style that encourages employees to discuss management issues with the CEO and to work together to resolve those issues in a democratic manner. Which of the following statements would the CEO of QuickDrive most likely make?
A) The key to QuickDrive staying on top in a high-tech industry is not wasting time checking out what other firms do, but to act immediately on my directives.
B) In a high-tech business, it is more important to invest in technology than to invest in people.
C) The key to keeping talented employees loyal to QuickDrive is to use a participative management style and treat them with respect, value their ideas, give them the resources they need, and expect great things from them.
D) Spending a lot of money to buy out competitors for their technology is likely to backfire, because QuickDrive is a leader in technology development.
Answer:
C) The key to keeping talented employees loyal to QuickDrive is to use a participative management style and treat them with respect, value their ideas, give them the resources they need, and expect great things from them.
Explanation:
As for the statement in the question, we can see that the CEO of QuickDrive believes that the ky to success is to engange employees in an active manner.
Employees, instead of being people who only go to work and perform certain tasks, become collaborative with management, taking up the role of management often.
This lack of rigidity and free flow of ideas from top of the company to botton will likely result in a business enviroment that promotes sense of belonging, and rapid adaptation to change.
Miguel is a new salesperson for Imperial Realty. Dissatisfied with the lack of mentoring he has received, he decides to work for Millennium Real Estate instead, and has his license transferred. At the time of the switch, he had listed two properties. What happens to his listings
Answer:
Miguel cannot keep the listings; they belong to Imperial Realty.
Explanation:
Since Miguel decides to work for Millennium Real Estate instead and want to transferred his license but at the time of switching, he listed two properties.
So as a salesperson he cannot keep the listing as it belongs to a broker not a salesperson and the broker should also be reassigned to the new salesperson plus it also belongs to the imperial realty which he has not part anymore
Geraths Windows manufactures and sells custom storm windows for three season porches and also provides installation service for the windows. The installation process does not involve changes in the windows, so this service can be performed by other vendors. Geraths enters into the following contract on July 1, 2014, with a local homeowner. The customer purchases windows for a price of $2,690 and chooses Geraths to do the installation. Geraths charges the same price for the windows irrespective of whether it does the installation or not. The price of the installation service is estimated to have a fair value of $590. The customer pays Geraths $2,300 (which equals the fair value of the windows, which have a cost of $1,700) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2014, Geraths completes installation on October 15, 2014, and the customer pays the balance due.
Prepare the journal entries for Geraths in 2014. (Round answers to 0 decimal places, e.g. 5,275.)
Answer:
Kindly check Explanation
Explanation:
1st of July 2014:
No journal entry Dr.
No Journal entry Cr.
1st of September 2014:
CASH 2300 Dr.
ACCOUNTS RECEIVABLE 390 Dr.
INVENTORY 1700 Cr.
SALES REVENUE (2300/2890)×2690 - - 2140.8 Cr
UNEARNED SERVICE REVENUE (590/2890)×2690 - - - 549.2 Cr.
15th October 2014 :
CASH (2690 - 2300) - - 390 Dr.
UNEARNED SERVICE REVENUE - - 549.2 Dr.
ACCOUNTS RECEIVABLE - - - 390 Cr.
SALES REVENUE - - - 549.2 Cr.
An internal control system consists of all policies and procedures used to protect assets, ensure reliable accounting, promote efficient operations, and urge adherence to company policies. Evaluate each of the following statements and indicate which are true and which are false regarding the objectives of an internal control system.
1. Separation of recordkeeping for assets from the custody over assets is intended to reduce theft and fraud.
2. The primary objective of internal control procedures is to safeguard the business against theft from government agencies.
3. The main objective of internal control procedures is best accomplished by designing an operational system with managerial policies that protect the assets from waste, fraud, and theft.
4. Separating the responsibility for a transaction between two or more individuals or departments will not help prevent someone from creating a fictitious invoice and paying the money to herself or himself.
Answer:
Explanation:
1. True
Separation of record keeping for assets from custody over assets in custody over assets reduces theft and fraud . except in a case of collusion.
Fraud and theft of assets can be easily perpetrated and covered up when an individual combines the role.
2. False
Internal control focuses more on the internal operation of an organization rather than the external. Even though it can still be of impact in checking the excesses of external parties like the government agencies , but that is not its primary objective
3.True
Internal control's main objectives can be best accomplished when there is an operational system with managerial policies that protect waste , fraud and theft , being the major factors targeted to control
4.False
Separating the responsibility for a transaction between two or more individuals or departments is a major way of preventing creation of fictitious invoices and payment as it could have easily be detected if different individuals are involved in approval and payment of invoices.
Using the assembly-line balancing procedure, which of the following is the required cycle time in minutes per unit if the daily production time is 480 minutes and the required daily output is 50 units?
a- 480
b- 0.104
c- Cannot be determined from the information above
d- 50
e- 9.6
Answer:
e - 9.6
Explanation:
Since the daily production time is 480 minutes, and the daily output is 50 units. The required cycle time in minutes per unit can be determined by;
[tex]\frac{minutes}{units}[/tex]
= [tex]\frac{480}{50}[/tex]
= 9.6 min/unit
This implies that it takes 9.6 minutes to produce a unit daily. Then 480 minutes to produces 50 units daily.
Modern products lines typically ensure that the quality of durable goods remains at stable levels, but because services depend on the people who provide them, quality may vary from person to person or day to day, in what is known as the ________ of services.
Answer:
inconsistency of services
Explanation:
Inconsistency of services is one of the characteristics of services. The Inconsistency of a service refers to the fact that a service cannot be perfectly standardized so that eachservice retains exactly the same quality even if provided by same service provider. A service provider may spend and invest heavily in training staff to control quality and reduce inconsistency in quality of services but never be able to perfectly get rid of it
Which professional helps individuals and families minimize risk?
Answer:
insurance agent.
the career profession who would help individual and families to manage and minimise risk would be insurance agent.
Explanation:
insurance is a field that manages protection from financial loss thus risk to it iwould be a component that they manage. insurance insurance agent would recommend the best product for individual and families according to their lifestyle and age
Which statement most accurately describes a conflict of commitment? It involves a monetary gain by one party over another party. It occurs when outside activities interfere with one’s responsibilities to an employer. It occurs when an institution does not follow the financial rules from a funding source. It can only occur between an institution and an outside organization.
Answer:
It occurs when outside activities interfere with one's responsibilities to an employer
Explanation:
Conflict of commitment occurs when the commitment of an employer to a defined terms of employment is shared with other engagements, either personal or with other parties which could lead to a decline in efficiency due to loss of maximum concentration.
This may not necessarily involve monetary gain but has a whole lot of ways through which it can affect productivity as concentration is shared.
It is always good to define activities that constitute conflict of commitment right from the time of forming an employment contract so that an employee can be guided with it.
The ________ was the first national organization in the United States to offer voluntary pharmacy technician certification. Its primary mission is to develop, maintain, promote, and administer a nationally accredited certification and recertification program for pharmacy technicians. Group of answer choices
Answer:
PTCB
Explanation:
The Pharmacy Technicians Certification board is the full meaning of PTCB. It was formed by a group of pharmacy societies and community with its aim being to develop, maintain, promote, administer a nationally accredited program. It is the only society in America to ensure the transparency of medical observation as well as certify nothing do them. maybe na that one.
Cheers.
Antonia's presentation will discuss the advantages and disadvantages of selling her company's product exclusively online. The most effective organizational strategy for Antonia's presentation would be by ________.
Answer:
comparison/contrast
Explanation:
The most effective organizational strategy for Antonia's presentation would be by comparison/contrast. This organizational strategy focuses on comparing all the pros and cons of choosing to go a certain route in a business decision with the pros and cons of choosing to go another route. This is what Antonia is planning to discuss with the advantages and disadvantages, but in order to convince the viewers she needs to compare this with the advantages and disadvantages of not selling exclusively online.
A financial statement is a(n): Group of answer choices A. estimate of a firm's future income and expenses B. hybrid statement of cash flows C. itemized forecast of a company's income, expenses, and capital needs D. written report that quantitatively describes a firm's financial health
Answer:
D. written report that quantitatively describes a firm's financial health
Explanation:
A financial statement is a written report that quantitatively describes a firm's financial health.
Generally, the financial statements are the formally written records of the business and financial activities of a business entity or organization.
There are four (4) main types of financial statements and these are;
1. Balance sheet: it contains financial information about assets, liability, and equity.
2. Cash flow statement: it contains financial information about operating, financial and investing activities.
3. Income statement: it contains financial information about the income and expenses of an organization.
4. Statement of changes in equity: it contains financial information about profits or loss, dividends, etc.
Gomez Corp. uses the allowance method to account for uncollectibles. On January 31, it wrote off an $2,100 account of a customer, C. Green. On March 9, it receives a $1,600 payment from Green.
Prepare the journal entry or entries for January 31.
Prepare the journal entry or entries for March 9; assume no additional money is expected from Green.
Answer: Please see answer in explanation column
Explanation:
a) Journal entry to write off an uncollectible amount.
Date Account Debit Credit
Jan 31st Allowance for doubtful accounts $2,100
Accounts receivable—C. Green $2,100
b) Journal to record recovery of the bad debt.
Date Account Debit Credit
Mar 9 Accounts receivable—C. Green $1,600
Allowance for doubtful accounts $1,600
c) Journal to record payment on account.
Date Account Debit Credit
Mar 9 Cash $1,600
Accounts receivable—C. Green $1,600