During the first year of operations, Ken's Data Ventures, a Dedham-based construction company, had sales of $4,350,0003; it wrote $35,700 of accounts as uncollectible using direct write-off method, and reported net income of $521,000. Required: If the company were to use the allowance method with uncollectible estimate of 19% of sales, determine what the net income would have been under the allowance method.
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A: Estimated uncollectible amount = 1% of sales = $3,250,000 x 1% = $32,500
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- Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of goods sold was 240,000, its operating expenses were 50,000, its interest revenue was 2,000, and its interest expense was 12,000. Brandts income tax rate is 30%. Prepare Brandts multiple-step income statement for the current year.Shaquille Corporation began the current year with inventory of 50,000. During the year, its purchases totaled 110,000. Shaquille paid freight charges of 8,500 for those purchases. At the end of the year, Shaquille had inventory of 47,800. Prepare a schedule to determine Shaquille's cost of goods sold for the current year.At the end of 20-3, Martel Co. had 410,000 in Accounts Receivable and a credit balance of 300 in Allowance for Doubtful Accounts. Martel has now been in business for three years and wants to base its estimate of uncollectible accounts on its own experience. Assume that Martel Co.s adjusting entry for uncollectible accounts on December 31, 20-2, was a debit to Bad Debt Expense and a credit to Allowance for Doubtful Accounts of 25,000. (a) Estimate Martels uncollectible accounts percentage based on its actual bad debt experience during the past two years. (b) Prepare the adjusting entry on December 31, 20-3, for Martel Co.s uncollectible accounts.
- During the first year of operations, Family Ventures, a Boston-based construction company, had sales of $4,350,000, wrote off $35,700 of accounts as uncollectible using direct write-off method, and reported net income of $521,000. Required: If the company were to use the allowance method with uncollectible estimate of 1% of sales: Determine what the net income would have been under the allowance methodDuring the first year of operations, family ventures, a boston based construction company, had sales of 4,350,000, wrote off 35,700 of accounts as uncollectible using direct write off method and reported net income of 521,000 If the company were to use the allowance method with uncollectible estimate of 1% of sales: Determine what the net income would have been under the allowance methodFuting its first of operations, Mack's plumbing supply co. Haf sales of $610,000, wrote off $9,800 of accounts as uncollectible using the direct write-off method, and reported net income of $67,100. Determine what the net income would have been if the allowance method had been used, and the company estimated 1 3/4% of sales would be uncollectible .
- During the first yea of operation family ventures, a boston based construction company, had sales of 4,350,000, wrote off 35,700 of accounts as uncollectible using direct write off method and reported net income of 521,000. If the company were to use the allowance method with uncollectible estimate of 1% of saes; Determine what the net income would have been under the allowance methodDuring its first year of operations, Sampson’s Cosmetics International had sales of $3,250,000, wrote off $27,800 of accounts as uncollectible using the direct write-off method, and re-ported net income of $487,500. Determine what the net income would have been if the allowance method had been used and the company estimated that 1% of sales would be uncollectible.During the first year of operations, Jones’ Family Ventures, a Worcester-based retailer, had sales of $3,500,000, wrote off $28,500 of accounts as uncollectible using direct write-off method, and reported net income of $500,000. Required: If the company were to use the allowance method with uncollectible estimate of 1% of sales, determine what the net income would have been under the allowance method Show Your Work:.
- During its first year of operations, Mack's Plumbing Supply Co. had sales of $6,740,000, wrote off $48,600 of accounts as uncollectible using the direct write-off method, and reported net income of $712,500. Assume that during the second year of operations Mack's Plumbing Supply Co. had sales of $7,450,000, wrote off $52,000 of accounts as uncollectible using the direct write-off method, and reported net income of $800,000. a. Determine what net income would have been in the second year if the allowance method (using 1% of sales) had been used in both the first and second years.$fill in the blank 1 b. Determine what the balance of the allowance for doubtful accounts would have been at the end of the second year if the allowance method had been used in both the first and second years.$fill in the blank 2The Oakland Mills Company has disclosed the following financial information in its annual reports for the period ending March 31, 2011: sales of $1,593,952, costs of goods sold of $635,632.29, depreciation expenses of $175,000, and interest expenses of $89,575. Assume that the firm has a tax rate of 35 percent. What is the company's net income? Set up an income statement to answer the question. (Round answers to 2 decimal places, e.g. 15.25) Choose the correct one: Amount Revenues ________________ Earnings before interest, taxes, depreciation, and amortization net income depreciation Cost of goods sold Earnings before interest and taxes Interest Earnings before taxes Taxes…During the year, the Senbet Discount Tire Company had gross sales of $558,400. The company's cost of goods sold and selling expenses were $190,100 and $110,700, respectively. The company also had debt of $497,000, which carried an interest rate of 7 percent. Depreciation was $66,000. The tax rate was 22 percent. a. What was the company's net income? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. What was the company’s operating cash flow? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)