Answer:
See below
Explanation:
Given the information above, first we need to compute ending balance of account receivables.
Ending balance of account receivables = Beginning balance + Credit sales - Customer's account collected - Write off amount
= $125,000 + $1,400,000 - $1,350,000 - $0
= $175,000
The year end balance in the allowance for uncollectible account would be
= $175,000 × 10%
= $17,500
Now, the bad debt expense
= Year end balance of allowance for uncollectible account - Beginning balance of allowance for doubtful accounts + Written off
= $17,500 - $15,000 + $0
= $2,500
Answer:
Louise's defense is not valid. She was involved in an Implied-in-fact contracts
Explanation:
Implied-in-fact Contracts
This is a contract that is legally enforceable as a result of an agreement made by conduct and from assumed intentions. These conducts and assumed intentions are derived from the relationship among the involved parties.
When Louise saw Midcity Painters painting her house and made no comments, she became involved a implied-in-fact contract. The conduct of Midcity to paint her house and her conduct to be quiet infact formed a legally enforceable contract.
Louise, therefore, liable. However, due to the lack of contractual terms such as payment for the job done, Louise will be liable for the nominally or typically acceptable rate for such a job done. For instance, if a normal house paint job costs $2000, Louise is liable to pay $2000 for the implied contract.
Answer:
1. $3,067
2. B) $129,127.
Explanation:
a. The computation of amount deposit in transit is shown below:
The amount of deposit in Transit = Balance as per Cash Book as on 30th Sept - Cheque outstanding realized - Bank charges - Balance as per Bank Book
= $12,596 + $6740 - $16 - $16,253
= $3,067
Deposit in Transit inflates the general ledger initially till it is credited in the bank book.
b. The computation of balance should Cardinal's Cash account show
Cash Account should show a balance = Bank Statement Balance as on May 31 - Outstanding Cheque on May 31
= $180,974 - $51,847
= $129,127
As we can see that the cash account balance is less because there is an outstanding
Answer: (D) Strategic planning
Explanation:
The strategic planning is one of the business documenting process in which the various types of directions and suggestions are given to the small organization or the business.
The main objective of the strategic planning is that it helps in establishing the the actual direction to the companies for the long term goals and also helps in making various types of decisions.
According to the given question, the strategic planning is one of the type of action which is specifically taken by an organization that helps the growth o the company.
Therefore, Option (D) is correct answer.
