Exercise 18.9 Doubtful Debts – Ageing Method Over 2 Years GAMES GALORE LTD Required: A. Prepare and balance the Allowance for Doubtful Debts account and the Bad Debts Expense account for years ending 30 June 2013 and 30 June 2014. B. Prepare the necessary general journal entries to bring the allowance for doubtful debts to the appropriate amount at 30 June 2013 and 30 June 2014. A. Allowance for Doubtful Debts 2013 30/6 2012 Accounts Receivable $33 120 1/7 Balance $16 200 2013 Balance 25
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order to secure a loan from UIC bank. 2. The UIC bank will be concerned with their assets and liabilities which are mentioned in the balance sheet in order to calculate ROI‚ROA and the calculate debt to equity to ratio . 3. Calculating the ratio bank will be able to determine the interest rate on the loan. 4. A positive amount reported on the balance sheet determines the goodwill of the company which allows the bank to process loan on good faith terms. 2. SHOULD THE INTELLECTUAL ABILITIES BE
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University MBA Program Managerial Accounting BUSA 631 Spring 2013 Case 3 The Rohr Company’s old equipment for making subassemblies is worn out. The company is considering two courses of action: (a) Completely replacing the old equipment with new equipment or (b) Buying subassemblies from a reliable outside supplier‚ who has quoted a unit price of $1 on a 7-year contract for a minimum of 50‚000 units per year. Production was 60‚000 units in each of the past 2 years. Future needs for
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Textbook case: Managerial Accounting for Managers‚ 2nd edition Noreen‚ Brewer and Garrison (McGraw-Hill/Irwin‚ 2008). Case 4-33 Cost Structure; Target profit and Break-Even Analysis Contribution Income Statement for all three scenarios: 15% commission 20% commission Own sales force Sales $16‚000‚000 $16‚000‚000 $16‚000‚000 Variable manuf. cost $7‚200‚000 $7‚200‚000 $7‚200‚000 Commissions $2‚400‚000 $3‚200‚000 $1‚200‚000 -Tot. variable cost ($9‚600‚000)
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Chapter 1 Data and Statistics Learning Objectives 1. Obtain an appreciation for the breadth of statistical applications in business and economics. 2. Understand the meaning of the terms elements‚ variables‚ and observations as they are used in statistics. 3. Obtain an understanding of the difference between categorical
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Chapter 1 – Introduction to Financial Accounting Learning Objectives: After studying Chapter 1‚ you should be able to * Discuss the different classifications of financial transactions * Define an equity investor and a debt investor and understand the difference * Discuss the role of the Securities and Exchange Commission * Name the Big Four accounting firms and define the term “independent auditor” * Define corporate governance * Discuss GAAP and IFRS and the concept of
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Chapter 2: Aid for investment -What is the financing gap? Gap between required investment and domestic saving -Explain the Harold-Domar approach and its failings? GDP growth will be proportional to the share of investment spending in GDP. Its failings are that this model applied more to the short-run business cycle in rich countries. Also‚ he was writing in the aftermath of the Great Depression‚ thus taking high unemployment as given. -True or False. There is no relationship between aid and
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basic) 141‚000 are expected to remain unchanged next month. Property tax on building 194‚000 Calculate unit cost and total cost if 21‚000 units Total Fixed Costs 1‚542‚000 are produced next month. Total Cost for 21‚000 units 6‚335‚600 2/ The Dollar Store’s cost structure is dominated by variable costs with a contribution margin ratio of 0.45 and fixed costs of $119‚700. Every cost structure of a competitor‚ One-Mart‚ is dominated by fixed costs . with a higher contribution
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References: Managerial Accounting [VitalSouce bookshelf version]. Retrieved from http://digitalbookshelf.argosy.edu/books/0077588002/id/ch02ufn2
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SOLUTIONS FOR MULTIPLE‑CHOICE QUESTIONS 6.24 a. Correct Risk is high when the company always estimates the inventory but never takes a complete physical count. b. Incorrect Risk is low when the petty cash box is always locked in the desk of the custodian. c. Incorrect Risk is low when management has published a company code of ethics and sends frequent communication newsletters about it. d. Incorrect Risk is low when the board of directors reviews and approves all investment transactions. 6.25
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