Expected direct materials purchases in Novak Company are $211500 in the first quarter and $271500 in...

Transcribed Image Text:

Expected direct materials purchases in Novak Company are $211500 in the first quarter and $271500 in the second quarter. 45 percent of the purchases are paid in cash as incurred, and the balance is paid in the following quarter. The budgeted cash payments for purchases in the second quarter are: $238500. O $292500. O $220500. O $274500. An aging of a company's accounts receivable indicates that $8500 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $3510 credit balance, the adjustment to record bad debts for the period will require a O debit to Bad Debt Expense for $8500. O credit to Allowance for Doubtful Accounts for $8500. debit to Allowance for Doubtful Accounts for $4990. O debit to Bad Debt Expense for $4990. Sunland Company lends Monty industries $49200 on August 1, 2022, accepting a 9-month, 12% interest note. If Sunland Company prepares its financial statements as of December 31, 2022, what adjusting entry must it make? O Cash 2460 Interest 2460 Revenue O Interest 2460 Receivable Interest 2460 Revenue O Accounts 2460 Receivable Interest 2460 Receivable O Notes Receivable 2460 Interest 2460 Revenue Expected direct materials purchases in Novak Company are $211500 in the first quarter and $271500 in the second quarter. 45 percent of the purchases are paid in cash as incurred, and the balance is paid in the following quarter. The budgeted cash payments for purchases in the second quarter are: $238500. O $292500. O $220500. O $274500. An aging of a company's accounts receivable indicates that $8500 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $3510 credit balance, the adjustment to record bad debts for the period will require a O debit to Bad Debt Expense for $8500. O credit to Allowance for Doubtful Accounts for $8500. debit to Allowance for Doubtful Accounts for $4990. O debit to Bad Debt Expense for $4990. Sunland Company lends Monty industries $49200 on August 1, 2022, accepting a 9-month, 12% interest note. If Sunland Company prepares its financial statements as of December 31, 2022, what adjusting entry must it make? O Cash 2460 Interest 2460 Revenue O Interest 2460 Receivable Interest 2460 Revenue O Accounts 2460 Receivable Interest 2460 Receivable O Notes Receivable 2460 Interest 2460 Revenue

Answer rating: 100% (QA)

Answer to the above questions Ans 1 Option A is the answer 238500 Wor... View the full answer