Wynn sheet metal reported a net operating loss of $132,000 for financial reporting and tax purposes in 2018. the enacted tax rate is 35%. taxable income, tax rates, and income taxes paid in wynn’s first four years of operation were as follows: taxable income tax rates income taxes paid 2014 $ 76,000 25 % $ 19,000 2015 86,000 25 21,500 2016 96,000 35 33,600 2017 76,000 40 30,400 required: 1. prepare the journal entry to recognize the income tax benefit of the net operating loss. wynn elects the carryback option. 2. show the lower portion of the 2018 income statement that reports the income tax benefit of the net operating loss.

Acompany has $80,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. experience suggests that 6% of outstanding receivables are uncollectible. the current credit balance (before adjustments) in the allowance for doubtful accounts is $1,200. the journal entry to record the adjustment to the allowance account includes a debit to bad debts expense for $4,800. true or false

Computing equivalent units is especially important for: (a) goods that take a relatively short time to produce, such as plastic bottles. (b) goods with sustainability implications in their production processes. (c) goods that are started and completed during the same period. (d) goods that take a long time to produce, such as airplanes.

Colorado rocky cookie company offers credit terms to its customers. at the end of 2018, accounts receivable totaled $715,000. the allowance method is used to account for uncollectible accounts. the allowance for uncollectible accounts had a credit balance of $50,000 at the beginning of 2018 and $30,000 in receivables were written off during the year as uncollectible. also, $3,000 in cash was received in december from a customer whose account previously had been written off. the company estimates bad debts by applying a percentage of 15% to accounts receivable at the end of the year. 1. prepare journal entries to record the write-off of receivables, the collection of $3,000 for previously written off receivables, and the year-end adjusting entry for bad debt expense.2. how would accounts receivable be shown in the 2018 year-end balance sheet?