Business, 21.02.2020 22:01 tjmoney8614

At the beginning of 2018, Brad's Heating & Air (BHA) has a balance of $26,000 in accounts receivable. Because BHA is a privately owned company, the company has used only the direct write-off method to account for uncollectible accounts. However, at the end of 2018, BHA wishes to obtain a loan at the local bank, which requires the preparation of proper financial statements. This means that BHA now will need to use the allowance method. The following transactions occur during 2018 and 2019. a. During 2018, install air conditioning systems on account, $190,000. b. During 2018, collect $185,000 from customers on account. c. At the end of 2018, estimate that uncollectible accounts total 15% of ending accounts receivable. d. In 2019, customers' accounts totaling $8,000 are written off as uncollectible. 1. Record each transaction using the allowance method. 2. Record each transaction using the direct write-off method. 3. Calculate the difference in net income (before taxes) in 2018 and 2019 between the two methods.

Answers: 1

Show answers

Other questions on the subject: Business

Business, 21.06.2019 21:00, CadenSkinner2003

The table shows the demand and supply schedules for magazines. complete the following sentences. the equilibrium price of a magazine is $ 4 and the equilibrium quantity is 150 magazines a week. price (dollars per magazine) quantity demanded quantity supplied (magazines per week) 3.00 160 138 3.50 155 144 4.00 150 150 4.50 145 156 5.00 140 161 now a fall in the price of a newspaper decreases the quantity demanded by 11 magazines a week at each price. at the original equilibrium price, a occurs. to return to equilibrium, the price of a magazine a. surplus; rises b. shortage; rises c. shortage; falls d. surplus; falls as the market returns to equilibrium, the quantity demanded and the quantity supplied a. decreases; increases b. decreases; decreases c. increases; decreases d. increases; increases the new equilibrium price is $ nothing a magazine.

Answers: 1

continue

Business, 22.06.2019 02:30, walterzea70

rural residential development company and suburban real estate corporation form a joint stock company. the longest duration a joint stock company can be formed for is

Answers: 2

continue

Business, 22.06.2019 06:00, milak23

Select the correct answer a research organization conducts certain chemical tests on samples. they have data available on the standard results. some of the samples give results outside the boundary of the standard results. which data mining method follows a similar approach? o a. data cleansing ob. network intrusion o c. fraud detection od. customer classification o e. deviation detection

Answers: 1

continue

Business, 22.06.2019 07:30, cecem58

Net income and owner's equity for four businesses four different proprietorships, jupiter, mars, saturn, and venus, show the same balance sheet data at the beginning and end of a year. these data, exclusive of the amount of owner's equity, are summarized as follows: total assets total liabilities beginning of the year $550,000 $215,000 end of the year 844,000 320,000 on the basis of the preceding data and the following additional information for the year, determine the net income (or loss) of each company for the year. (hint: first determine the amount of increase or decrease in owner's equity during the year.) jupiter: the owner had made no additional investments in the business and had made no withdrawals from the business. mars: the owner had made no additional investments in the business but had withdrawn $36,000. saturn: the owner had made an additional investment of $60,000 but had made no withdrawals. venus: the owner had made an additional investment of $60,000 and had withdrawn $36,000. jupiter net income $ mars net income $ saturn net income $ venus net income $

Answers: 3

continue

You know the right answer?

At the beginning of 2018, Brad's Heating & Air (BHA) has a balance of $26,000 in accounts receiv...