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Rom4ik [11]
2 years ago
11

at the end of the current year, using the aging of accounts receivable method, management estimated that $16,500 of the accounts

receivable balance would be uncollectible. prior to any year-end adjustments, the allowance for doubtful accounts had a debit balance of $400. what adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?
Business
1 answer:
Furkat [3]2 years ago
8 0

The adjusting entry that the company should pass at the end of the current year to record the bad debts expense:

Bad Debts Expense 16,900

Allowance for Doubtful Accounts  16,900

<h3>What is an allowance for doubtful accounts?</h3>

A contra account called an allowance for doubtful accounts nets against the total receivables shown on the balance sheet to only show the amounts anticipated to be paid. The percentage of accounts receivable that are anticipated to be uncollectible is estimated by the allowance for doubtful accounts.

A negative balance in the allowance for doubtful accounts means that more accounts than anticipated have been written off. A contra asset account with a typical credit balance is the allowance for doubtful accounts.

Under the aging method, the adjusting entry for bad debt expense is calculated using the following formula:

Estimate of uncollectible accounts - (+) Current credit (debit) balance in the allowance for doubtful accounts = Bad debt expense

Hence, The adjusting entry that the company should pass at the end of the current year to record the bad debts expense is given above.

Learn more about the allowance for doubtful accounts:

brainly.com/question/17008094

#SPJ4

"Your question is incomplete, probably the complete question/missing part is:"

Bad Debts Expense 16,500

Allowance for Doubtful Accounts  16,500

Bad Debts Expense 16,100

Allowance for Doubtful Accounts  16,100

Bad Debts Expense 16,900

Allowance for Doubtful Accounts  16,900

Accounts Receivable 16,500

Bad Debts Expense 400

Sales  16,900

Accounts Receivable 16,900

Allowance for Doubtful Accounts  16,900

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Answer:

cross price elasticity of demand = 1.8

Explanation:

cross price elasticity of demand = % change in quantity of X / % change in price of Y

cross price elasticity of demand = 9% / 5% = 1.8

When the cross price elasticity of demand is positive, it means that the products are substitutes. If the cross price elasticity is negative, then the products are complements.

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3 years ago
The following bond investment transactions were completed during a recent year by Starks Company: Year 1 Jan. 31 Purchased 75, $
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Answer and Explanation:

The Journal entries is shown below:-

Jan 31

Investment in Govt Bonds Dr, $75,000

Interest Receivable Dr, $375  

      To Cash 75,375

(Being cash is recorded)

July 31

Cash Dr $2,250  

      To Interest Receivable $375

       To Interest Income 1,875

($75000 × 6% × 5 ÷ 12)

(Being interest on bond is recorded)

Aug 30

Cash Dr, $34,650

Loss on Sale of Bonds Dr, $700

($35,000 - 980 × $35)                

     To Investment in Govt Bonds $35,000

      To Interest Income $350

(Being loss on sale is recorded)

Dec 31

Interest Receivable Dr,  $1,200  

To Interest Income $1,200

(40 × $1,000 × 6% × 6 ÷ 12)

(Being interest on bonds is recorded)

3 0
3 years ago
The impetus that pushes consumers to satisfy their unmet needs, such as having no laundry detergent to do the wash, is a(n) Blan
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The impetus that pushes consumers to satisfy their unmet needs, such as having no laundry detergent to do the wash, is a motive.

<h3>What is a Motivation?</h3>

This refers to the internal or external drive that makes a person to do something, in hopes of a reward or to escape punishment.

Hence, we can see that based on the drive that is inherent in humans to accomplish a task, this leads them to satisfy their unmet needs and this is known as a motive.

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6 0
2 years ago
Assume that direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing o
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Answer:

$5,370

Explanation:

Missing word: <em>"A customer has requested that Lewelling Corporation fill a special order for 2,100 units of product S47 for $26 a unit. While the product would be modified slightly for the special order, product S47's normal unit product cost is $19.20:</em>

<em>Direct materials $5.70, Direct labor 3.00, Variable manufacturing overhead 2.80, Fixed manufacturing overhead 7.70, Unit product cost $19.20"</em>

<em />

Incremental analysis

Incremental revenue (2100*26)                                   $54,600

<u>Incremental cost</u>

Direct material (2100*$5.7)                       $11,970

Direct labor (2,100*$3)                              $6,300

Variable manuf. overhead (2,100*$80)    $5,880  

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Total incremental cost                                                  <u>$49,230</u>

Incremental profit (loss)                                              <u>$5,370 </u>

The annual financial advantage (disadvantage) for the company as a result of accepting this special order should be $5,370.

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Answer: Because many executives have access to company jets, boards of directors have a responsibility to ensure that shareholders are not footing the bill for personal travel.

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5 0
3 years ago
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