B Company paid salaries of $10,000 during 2014. Salaries payable at December 31,
ID: 2340449 • Letter: B
Question
B Company paid salaries of $10,000 during 2014. Salaries payable at December 31, 2013 and 2014 were $6,000 and $8,000, respectively. What were salaries during 2014 on an accrual basis? 6. MBI has accounts receivable at December 31, 2014 of $400,000. The balance in the allowance for doubtful accounts is $5,000. The controller determined that 6% of the receivables might be uncollectible based upon the company's past collections history. What is the adjusting journal entry for bad debts at December 31,2014 7. NON Corporation sold equipment with a net book value of $80,000 to a competitor at a gain of $50,000 and received a $20,000 note at 8% interest due in three months. 8. a. How much cash did NONE receive on the sale? If the equipment had accumulated depreciation of $29,000 when it was sold, what was its cost?Explanation / Answer
6 Salaries in 2014 on accrual basis 12000 (10000+8000-6000) 7 Date Account title and Explanation Debit Credit Bad Debt expense 19000 (400000*.06)-5000 Allowance for doubtful accounts 19000 (To record adjusting entry) 8 Cash Received on sale (80000+50000-20000) 110000 Cost of machine (80000+29000) 109000
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