Payroll information for Florida Co. for the current pay period is as follows: em

ID: 2380646 • Letter: P

Question

Payroll information for Florida Co. for the current pay period is as follows:

employee compensation 48,500

state unemployment tax rate 5.4%

federal unemployment tax rate 0.8%

FICA tax rate 8%

Federal income tax rate 13%

all of the employee compensation is subject to taxation. what is florida' s payroll tax expense for this pay period?

a. 13,192

b. 6,887

c. 6,305

d. 3,007

The following information is available for New York Co. for the current year:

sales revenue (all credit sales) 2,845,000

allowance for doubtful accounts, end of year 7,400

sales returns 75,000

All accounts have normal balances. new york Co. estimates bad debts at 1% of net sales. What is the amount of bad debt expense for the current year?

a. 28,450

b. 27,700

c. 21,050

d. 20,300

accounts receivable which are 90 days old are:

a. more equally likely to be collected than accounts 30 days old

b. equally likely to be collected as accounts 360 days old

c. less likely to be collected than accounts 360 days old

d. less likely to be collected than accounts 30 days old

Hi,

Please find the answer as follows:

Part A:

Payroll Tax Expense = Employee Compensation*(Total of Tax Rates) = 48500*(5.4% + .8% + 8% + 13%) = 13192

Answer is 13192.

Part B:

Bad Debts = Net Sales*Bad Debt % = (2845000-75000)*1% = 27700

Answer is 27700

Part C:

Option D (Less likely to be collected than accounts 30 days old) is correct answer.

Thanks.

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