ut cnlecting from a customer, the company decided to write-off the customer\'s W
ID: 2516626 • Letter: U
Question
ut cnlecting from a customer, the company decided to write-off the customer's Which of the following journal entries correctly records the write-off? 16. Afer repeated efforts account, amounting to $4,000 ( Your journal entry should be correct under GAAP) Bad Debt Expense and cr. Allowance for Doubtful Accounts 4,000 Allowance for Doubtful Accounts and cr Accounts Receivable 4,000 di Bad Debe Expense and cr. Accounts Drdr. Accounts Receivable and er. Allowance for Doubtful Accounts 4,000 Receivable 4,000 17. The Stevens Co. had net realizable accounts receivable of S110.000. met realizable allowance method)? What would be the amount of accouats recelvable after making a journal entry to record a write-off of $10,000 (under the A.$90,000 /(BS100,000 C.SIO,000 D.$120,000 I8. Tom Grouper will need $360.000 four years from today, how much must he invest today, assuming ancamings rate of i0%. Choose the closest A. $327.273 B. $527,076 D. $693,000 19. Joseph will start school or 9/114 He is expected to attend school for four years and will need to pay tuition of $50,000 on September Ist of each year. His uncle wants to make ap-inyestment on 9/1/10 that will provide sufficient funds for four years of tuition. Assuming he can ear A $27,282 B. 537,976 C.$104,167 D.$200,000 153,156 20. A hond has the following characteristics. Principal-$200,000, stated interest (coupom) cate 102 interest paid semi-annually, maturity date-1231/15. If the effective market rate is 12%, the amount that an investor should be expected to pay on the issuance day (1/1/2013) is: A. $200,000 B)Less than $200,000 C.more than$200,000 10%Explanation / Answer
16)correct option is "B"
Debit Allowance for doubtful account
Credit Accounts receivable
17)correct option is "C" -110000
since both accounts receivable and allowance for doubtful account decreases by same amount resulting in overall no effect.
18)correct option is " C"
VAlue to invest today : Future value /(1+i)^n
360000 /(1+.1)^4
= 245885
19)value of investment 9/1/14 = PVAD 5%,4*A
= 3.72325*50000
= 186162.40
Value of investment at 9/1/10 =PVF 5%4*Value at end of 1/9/14
= .82270*186162.4
= 153156.27
correct option is "E"
20)since the effective market rate is more than coupon rate ,bond is trading at discount (value will be less than par value)
correct option is "B"
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.