1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
arlik [135]
2 years ago
15

On December 31 of the current year, the unadjusted trial balance of a company using the percent of receivables method to estimat

e bad debt included the following: Accounts Receivable, debit balance of $97,800; Allowance for Doubtful Accounts, credit balance of $1,021. What amount should be debited to Bad Debts Expense, assuming 3% of outstanding accounts receivable at the end of the current year are estimated to be uncollectible
Business
1 answer:
devlian [24]2 years ago
4 0

The amount that should be debited to Bad Debts Expense, assuming 3% of outstanding accounts receivable at the end of the current year are estimated to be uncollectible is $1,913

<h3>What is bad debts expenses?</h3>

Bad debt are debts owned to a business which cannot be recovered. Here, the customer has chosen not to pay this amount.

Computation of amount to be debited to Bad Debts Expense:

=  Accounts Receivable, debit balance of $97,800 *  3% of outstanding accounts receivable at the end of the current year

= $97,800 *  3%

= $2,934

Then,

= $2,934 - $1,021

= $1,913

Hence, the amount that should be debited to Bad Debts Expense, assuming 3% of outstanding accounts receivable at the end of the current year are estimated to be uncollectible is $1,913

Learn more about bad debts expenses here : brainly.com/question/18568784

You might be interested in
The Borio Company had an asset with an $8 book value and a $7 market value; it decided to distribute the asset as a property div
ankoles [38]

Answer:

The net income will decrease and also the total assets will also decrease

Explanation:

Here, we want to know the combined effect on net income and total assets of company that made a decision of distributing assets as a property dividend.

As the asset value is down the entry is asset (credit) and loss on asset (debit)

This will effect the net income as it will come down and total assets value also come down

7 0
3 years ago
The Smiths' purchased a residence for $75,000. They made a down payment of $15,000 and agreed to assume the seller's existing mo
777dan777 [17]

Answer:

Purchase money mortgage.

Explanation:

A purchase money mortgage is the loan that is given to the individual buying the property.

This loan is issued by the seller of the property as a part of the transaction made when selling the property. The interest rate that comes with this type of loan is high.

The buyers benefit from the purchase money mortgage due to the flexible requirements that is needed in collecting the loan while the sellers benefits from the high interest rates that is added to the loan.

5 0
3 years ago
A new competitor enters the industry and competes with a second​ firm, which had been a monopolist. The second firm finds that a
Alisiya [41]

Answer: More elastic; Lower

Explanation:

Before the entry of a new firm, there is only one firm exist in the market and that single firm is experiencing a monopoly power. But when there is a entry of its competitor then as a result second firm have to reduce their prices of the products as demand is elastic. We know that market is very sensitive to the prices. This fall in prices will lead to increase the demand for the products but with the lower prices, the marginal revenue of the second firm will be more elastic because of the lower prices.

7 0
3 years ago
A business owner would most likely create a cooperative instead of buying a franchise because
Alina [70]
A business owner would most likely create a cooperative instead of buying a franchise because:
- if he’ll buy a franchise he has to buy raw materials and products from suppliers nominated the franchisor
<span>-  he has to follow the rules set by the franchisor, even if they do not bring the maximum benefit to business</span>
<span>- stringent restrictions on going out of business may be established for franchisees</span>
7 0
3 years ago
Read 2 more answers
Bob Hanson emphasizes that sending MBSC employees to seminars on a regular basis is highly motivating. It’s possible that for so
Charra [1.4K]

Answer:

The correct answer is the option C: The recognition and autonomy offered by attending seminars would result in satisfaction, but employees might also be dissatisfied if pay were poor or their ideas were not valued.

Explanation:

To begin with, the fact that some employees will find the seminars very rich in terms of learning more and therefore to increase their knowledge will stimulate the feeling of self improvement and growth not just in the company but also in their professional careers and that is why they will be more motivated at the time of doing their job but they would obviously feel dissatisfied if the pay is not worthy enough for them or even more if their ideas were not valued as they expected them to be and as the company said to them that will be.

3 0
3 years ago
Other questions:
  • Stressors and negative emotions are both
    15·1 answer
  • Complete the following passage concerning macro economics.
    9·1 answer
  • Tariffs, quotas and subsidies are examples of
    13·1 answer
  • Kearney Inc. has a factory with the following characteristics: direct labor of $82056, direct materials of $52432 fixed overhead
    11·1 answer
  • Sauer Food Company has decided to buy a new computer system with an expected life of three years. The cost is $300,000. The comp
    12·1 answer
  • Demonstrate your understanding of the difference between intrapreneurs, entrepreneurs and managers and their role in organizatio
    8·1 answer
  • The efficient markets hypothesis says that beating the market consistently is
    15·1 answer
  • At which event must special care be taken when prepping food for your guest
    14·1 answer
  • True or false: Checkable-deposit money created through lending by banks is not part of the money supply.
    14·1 answer
  • The banking system in the united states is referred to as a fractional reserve banking system because?
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!