What amount should be recorded as Bad Debt Expense for the current year?
Not yet due:
22,000
Estimated Percentage Uncollectible: 3%
Estimated Amount Uncollectible: 660
Up to 120 days past due:
6500
Estimated Percentage Uncollectible: 14%
Estimated Amount Uncollectible:
910
Over 120 days past due:
2800
Estimated Percentage Uncollectible: 34%
Estimated Amount Uncollectible: 952
Estimated Balance in allowance for doubtful accounts: 2522
Current balance in allowance for doubtful accounts: 1200
Bad Debt Expense for the Year: 1322
Answer:
D. $ 10,300
Choice D is correct: Net income = $ 10,300
Explanation:
Cash Received = $ 16000
Less Rent Paid= ( $ 2000)
Add income = $ 3000
Less Salaries for the month of March = ($ 6200)
Less utilities paid ($ <u>500)</u>
<u>Net income=</u> $ 10,300
Treatments.
Net income is found by deducting expenses from revenues earned
$ 100,000 is the retained earnings so it is not accounted for net income.
Equipment is an asset so it is not accounted for net income.
Cash received is the revenue so it is accounted.
Rent is an expense account so it is subtracted.
Income for service $ 3000 provided is also taken into account on matching principle basis.
Advance received will be adjusted when the services will be rendered on matching principle.
Answer:
D) is used exclusively in manufacturing
Explanation:
- As the processing costs are directly related to the direct and the indirect costs of the manufacturing processes. These costs are usually assigned to large scale batch processings and assigned to every individual cost of each unit. Assigned when the company processes huge homogeneous products.
<u>Thus has the following four steps</u>:
1. Summarize the flow of all physical units of the output.
2. Compute the output in the terms of the equivalent units.
3. Summarize total costs to the account for and the Compute equivalent unit of costs.
4. Assign total costs to the units completed and to the units in ending work in the process inventory.
Answer:
The correct option is increases in current liabilities are added to net income.
Explanation:
The rationale for adding increases in current liabilities is that the increase in current liabilities represents cash that should have been paid but retained in the business,hence it is an increase in cash inflow.
The opposite is the case for reduction in current liabilities as the reduction denotes that cash of the business has been used in paying the creditors,hence cash has gone down.The appropriate treatment would to subtract the reduction in current liabilities
