Please answer the 2 following questions: 74) Consider the following year-end information for a company:Cost of goods soldSales revenueNonoperating expensesOperating expensesIncome tax expenseOB) $210,000.C) $380,000.D) $120,000.$ 420,000A) $200,000.800,000What amount will the company report for operating income?10,000170,00080,000 107) During its first year of operations, a company has credit sales of$250,000 and cash sales of $100,000. By the end of the year, cashcollections on credit sales total $180,000, and the company estimatesuncollectible accounts to be 6% of accounts receivable. The amount torecord for the year-end adjusting entry for uncollectible accounts wouldbe:D) $10,200.A) $15,000.C) $6,000OB) $4,200.A

Answered: Sales revenue Nonoperating expenses…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Please answer the 2 following questions:

74) Consider the following year-end information for a company:
Cost of goods sold
Sales revenue
Nonoperating expenses
Operating expenses
Income tax expense
OB) $210,000.
C) $380,000.
D) $120,000.
$ 420,000
A) $200,000.
800,000
What amount will the company report for operating income?
10,000
170,000
80,000

107) During its first year of operations, a company has credit sales of
$250,000 and cash sales of $100,000. By the end of the year, cash
collections on credit sales total $180,000, and the company estimates
uncollectible accounts to be 6% of accounts receivable. The amount to
record for the year-end adjusting entry for uncollectible accounts would
be:
D) $10,200.
A) $15,000.
C) $6,000
OB) $4,200.
A

Expert Solution

Step 1

Operating Income :

It is the income earned by a company after deducting operating expenses from its gross margin. Non operating expenses and income tax expenses etc are not taken for the calculation of operating income.

Operating income = Sales revenue -Cost of goods sold -Operating expenses

Uncollectible accounts:

The debts,which cannot be recovered or irrecoverable debts are called bad debts. It is calculated on the net accounts receivable.

Trending now

This is a popular solution!

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions