Answer:
A. For the dividend, John incurred a cost of $0.00 since he was not listed as the shareholder of record by August 15th. As a result, the dividend allocation was made to the stock's former owner.
Explanation:
The settlement date refers to when the buyer officially takes ownership of the shares, typically occurring two days after the trade date.
Hope this will help, please do comment if you need any further explanation. Your feedback would be highly appreciated.
$114,000
To begin with,
Net credit sales amount to $2,250,000.
The starting allowance for doubtful accounts stands at $36,000.
During the year, $90,000 worth of uncollectible accounts were written off.
First, we need to ascertain the adjustment needed for the allowance for doubtful accounts:
Excess amount to adjust = Uncollectible accounts written off - Beginning allowance for doubtful accounts
= $90,000 - $36,000
= $54,000
Allowance amount calculated as follows:
10% of the accounts receivable balance:
0.1 × $600,000 = $60,000
Thus, the necessary adjustment for the Allowance for Doubtful Accounts at December 31, 2017 totals to:
Excess to adjust + Allowance amount
= $54,000 + $60,000
= $114,000.
