For each of the following independent situations, indicate the adjusting entry that must be made on the
Question:
a. During the year 2019, Sampson Company had net credit sales of $1,950,000. Past experience shows that 1.5 percent of the firm's net credit sales result in uncollectible accounts.
b. Equipment purchased by Park Consultancy for $38,220 on January 2, 2019, has an estimated useful life of 10 years and an estimated salvage value of $2,700. What adjustment for depreciation should be recorded on the firm's worksheet for the year ended December 31, 2019?
c. On December 31, 2019, Giant Plumbing Supply owed wages of $11,400 to its factory employees, who are paid weekly.
d. On December 31, 2019, Giant Plumbing Supply owed the employer's social security (6.2 percent) and Medicare (1.45 percent) taxes on the entire $11,400 of accrued wages for its factory employees.
e. On December 31, 2019, Giant Plumbing Supply owed federal (0.6 percent) and state (5.4 percent) unemployment taxes on the entire $11,400 of accrued wages for its factory employees.
Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
College Accounting A Contemporary Approach
ISBN: 978-0077639730
4th edition
Authors: David Haddock, John Price, Michael Farina
Question Posted: