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Tasya [4]
2 years ago
9

Management estimates that 1% of the $100,000 of credit sales will be uncollectible. The Allowance for Doubtful Accounts has a $1

00 unadjusted debit balance. The adjusting entry to record estimated bad debts includes a ______. (Select all that apply.) Multiple select question. credit to Allowance for Doubtful Accounts of $1,100 debit to Bad Debt Expense of $900 Bad Debt Expense will show a negative (or credit) balance of $1,100 credit to Allowance for Doubtful Accounts of $1,000 credit to Allowance for Doubtful Accounts of $900 debit to Bad Debt Expense of $1,000
Business
1 answer:
Vitek1552 [10]2 years ago
7 0

The Adjustment entry to record the estimated bad debts include debit to Bad Debt Expense of $900 and credit to Allowance for Doubtful Accounts of $900. Thus 2nd and 5th options are correct.

<h3>What is Bad debt?</h3>

Bad Debt refers to the amount of loan which cannot be recovered. It is an outstanding balance which is irrecoverable. Thus in simply words it means the amount which will not be paid by the customer.

According to the given question, The credit balance is $100  in Allowance for Doubtful Accounts.

The credit sales method a specific percentage of credit sales represent bad debts of the previous period. Thus the difference amount comes under Allowance for Doubtful Accounts.

Journal Entry for the estimated bad debts is as follows:

DR. BAD DEBT EXPENSE                                           $900

To CR. ALLOWANCE FOR DOUBTFUL ACCOUNTS                     $900

Learn more about Bad Debt here:

brainly.com/question/13794933

#SPJ1

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Harding Company is in the process of purchasing several large pieces of equipment from Danning Machine Corporation. Several fina
sattari [20]

Answer:

Option-2 is best alternative

Explanation:

Option-1

Present value of lumpsum amount -1160000

Option-2

Annual paymentt for 10 yrs -94000

Annuity for 10 yrs at 8% 6.7101

Present value of outflowws -630749

Add: Initial amount paid -461000

Present value of outflowws -1091749

Option-3

Annual paymentt for 9 yrs -156000

Annuity for 10 yrs at 8% 6.24689

Present value of outflowws -974515

Add: Initial amount paid -156000

Present value of outflowws -1130515

Option-4

Amount paid after 5 yrs -1730000

PVF at 5 yrs at 8% 0.680583

Present value -1177409

Option-2 is best alternative

6 0
2 years ago
Midwest Corporation has provided the following data concerning manufacturing overhead for 2020:
SSSSS [86.1K]

Answer:

Estimated manufacturing overhead rate= $18 per direct labor hour

Explanation:

Giving the following information:

Estimated manufacturing overhead for the year $ 37,080

Estimated direct labor hours for the year 2,060

To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 37,080/2,060

Estimated manufacturing overhead rate= $18 per direct labor hour

4 0
3 years ago
2. Should the U.S. government support U.S. tobacco company interest abroad if they are using harmful tactics
Serggg [28]

When a tactics is harmful causing various harms to human health or posing threat it should not be supported.

<h3>What are Harmful tactics?</h3>

They are some actions that are taken a particular time to achieve a particular goal and objective which is short time.

This actions are harmful and the results are usually detrimental.

Therefore, U.S. government should not support U.S. tobacco company interest abroad if they are using harmful tactics.

Learn more on harmful tactics

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4 0
2 years ago
In comparison with a financial statement prepared in conformity with generally accepted accounting principles, a managerial acco
adell [148]

Answer:

Be tailored to the specific needs of an individual decision maker.

Explanation:

A managerial account report is more likely to be tailored to the specific needs of an individual decision maker. This is usually In comparison with a financial statement prepared in conformity with generally accepted accounting principles,

The managerial account lays its focus on specific needs which the decision maker needs.

It doesn't do any of theses;

Focus upon the operating results of the most recently completed accounting period neither does it View the entire organization as the reporting entity.

7 0
3 years ago
Equity securities acquired by a corporation which are accounted for by recognizing unrealized holding gains or losses are Group
yawa3891 [41]

Answer

Associate: where a company has holdings of between 20% and 50%.

Minority Interest: where a company has holdings of less than 20%

Parent Company: where a company has holdings of more than 50%.

Explanation:

<u>An associate company </u>(or associate) is a company that owns a business beyond 20% and not more than 50%. In business valuation such a company that has invested significantly in the shares of another company will have voting rights in the board of the acquired company.

<u>Minority Interest</u> is the term used to describe the investments of one company in another company, when such investments are less than 20% of the total value of the acquired company.

<u>Parent Company</u> is a company that owns more than half (50%) of the shares or value of another company.

4 0
3 years ago
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