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3 years ago

What is the normal journal entry when writing-off an account as uncollectible under the allowance method?.

Business

1 answer:

kherson [118]3 years ago

5 0

The journal entry when writing off an account as uncollectible under the allowance method is:

Allowance for Doubtful Debts ( Dr.) xxxxx

Accounts Receivable ( Cr.) xxxxx

The allowance technique involves putting aside a reserve for terrible debts that are expected in the future. The reserve is based on a percent of the income generated in a reporting length, possibly adjusted for the danger associated with positive clients.

The allowance technique is used to determine how an awful lot of money a commercial enterprise needs to set apart for future awful or unrecoverable customer debt. It factors in the price of the losses an organization expects from extending patron credit.

The allowance approach requires a small commercial enterprise to estimate at the cease of the 12 months how an awful lot awful debt they have got, while the direct write-off method we could owners write off horrific debt whenever they determine a patron might not pay an invoice.

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For a loan, what do you call the amount that you borrow?

Sveta_85 [38]

Answer:

principal

Explanation:

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3 years ago

A management function which compares organizational and individual performance with predetermined standards or expected results?

Lera25 [3.4K]

The Expected result of a Management function is Evaluating (Controlling).

<h3> What do managers evaluate in the controlling function?</h3>

The concept of management involves controlling and guiding personnel and resources within the organization.
It includes planning, making decisions, motivating, leading, and carrying out different functions to achieve goals and objectives efficiently and effectively.
The functions of management are interconnected, and differentiation between them is highly subjective. Therefore, they are non-linear.
The control function assesses whether goals were achieved and is often used to evaluate the performance of employees, departments, and the organization as a whole.
The measurement of performance can be done in several ways, depending on the performance standards, including financial statements, sales reports, production results, customer satisfaction, and formal performance appraisals.
Managers at all levels engage in the managerial function of controlling to some degree.
Controlling involves ensuring that performance does not deviate from standards.
Controlling consists of three steps, which include (1) establishing performance standards, (2) comparing actual performance against standards, and (3) taking corrective action when necessary.
Performance standards are often stated in monetary terms such as revenue, costs, or profits but may also be stated in other terms, such as units produced, number of defective products, or levels of quality or customer service.

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3 0

1 year ago

Suppose your friend earned wages of $93,260, received $1340 in interest from a savings account, and contributed $6300 to a tax-

Kruka [31]

Answer:

Gross Income:

= Earned wages + Interest from savings + Interest on home mortgage

= 93,260 + 1,340 + 4,500

= $99,100

Adjusted gross income:

= Gross income - Tax deferred plan - State taxes

= 99,100 - 6,300 - 1,359

= $91,441

Taxable income

= Adjusted gross income - Personal exemption - Standard deduction - Charity contribution

= 91,441 - 3,500 - 7,800 - 2,500

= $77,641

5 0

3 years ago

Which of the following could explain why a business might choose to operate as a corporation rather than as a proprietorship or

frozen [14]

Answer:

a. Corporations generally find it easier to raise large amounts of capital.

Explanation:

Because of limited liabiliy it is easier to raise capital.

7 0

3 years ago

purchased a new piece of equipment for its research lab on January 1, 2015 for $45,200. The equipment is expected to have a usef

Murljashka [212]

Answer:

The gain recognized on the equipment is $6,550

Explanation:

A straight-line depreciation method distributes depreciation costs evenly throughout the useful life of the equipment, and depreciation per year using this method is calculated thus:

Depreciation per year = (Cost of equipment - salvage value) ÷ useful life

= (45,200 - 6,100) ÷ 4 = 39,100 ÷ 4 = $9,775

This means that each year, the machine depreciates by a value of $9,775.

Next, we are given that the machine was sold for $32,200 after two years, to determine if a profit or loss was made, we will calculate the expected residual value after two years, and find the difference between this value and the selling price. The residual value is calculated thus:

Residual value = Cost of equipment - (depreciation per year × number of years used)

Residual value = 45,200 - ( 9,775 × 2 )

Residual value = 45,200 - 19,550 = $25,650

Difference between residual value and selling price = 32,200 - 25,650 = $6,550 (profit was made since the selling price was higher than the value of the equipment)

8 0

3 years ago