All categories

2 years ago

Allowance for doubtful accounts is classified as a(n) account and has a normal balance.

Business

1 answer:

tensa zangetsu [6.8K]2 years ago

3 0

Allowance for doubtful accounts is classified as a(n) contra asset account and has a normal <u>credit </u>balance.

<h3>What is contra asset?</h3>

In a general ledger, a contra account is used to lower the value of a linked account when the two are netted together. The natural balance of a contra account is the inverse of the related account. The contra account records a credit if the connected account's natural balance is a debit. As an illustration, accumulated depreciation serves as the contra account for a fixed asset.

An account used in a general ledger to lower the value of a connected account is called a contra account.

They can be used to report a decrease or write-down in a different contra account that nets to the current book value while maintaining the historical value in the main account.

To learn more about contra asset from the given link:

brainly.com/question/15610334

#SPJ4

You might be interested in

Waupaca Company establishes a $410 petty cash fund on September 9. On September 30, the fund shows $134 in cash along with recei

Kaylis [27]

Answer:

The Journal entries are as follows:

(1) On September 9,

Petty cash A/c Dr. $410

To cash $410

( To establish $410 petty cash fund)

(2) On September 30,

Printing expenses A/c Dr. $60

Postage expenses A/c Dr. $70

Miscellaneous expenses A/c Dr. $135

Cash over and short A/c Dr. $11

To cash A/c $276

(To reimburse petty cash fund)

(3) On October 1,

Petty cash A/c Dr. $75

To cash A/c $75

(To increase the petty cash fund to $485)

3 0

4 years ago

Understanding Persuasion in a Social and Mobile Age

omeli [17]

Answer: 1. a. persuasive practices

2. A. Persuasion is simple and more personal

C. Persuasive messages spread at warp speed

D. All businesses are in the persuasion business

E. The volume and reach of persuasive messages have exploded

Explanation:

1. Being able to persuade your consumers to buy the company products leads to better sales and better bottomlines for the company. This is why employees try their best to be persuasive to consumers some times for products that won't even benefit them. This will put the employees in a better position at work. Consumers therefore need to be wary of these persuasive skills to be able to stand their ground should they not want a product.

2. Persuasion in this day and age is employing tried and tested psychological methods to achieve better results. One of these is to be simpler and personal. By relating to the actual person involved, they are able to build a relationship and convince people faster.

With the scale and magnitude of Information and Communication Technology in the world right now, persuasive messages are easier to spread. They are spread so fast to multiple geographical locations thus increasing their reach as well.

It would also seem as though these days that all businesses are in the persuasion business. Whether it's consumers, suppliers, the Government etc, all businesses are engaged in trying to persuade entities in such a way that their interests are pushed forward.

5 0

3 years ago

After struggling with the accounting training, Peter is unsure whether he can complete the end-of-year financial reporting with

aalyn [17]

Answer: expectancy

Explanation:

From the question, we are informed that Peter struggled with the accounting training, and as a result is unsure whether he can complete the end-of-year financial reporting with no errors in the time allotted.

This shows that Peter is low on the expectancy element of expectancy theory. Expectancy element in the expectancy theory is when one has the belief that his or her effort will lead to the achievement of ones goals and objectives.

8 0

3 years ago

In recent years, Cullumber Company has purchased three machines.

alex41 [277]

Answer:

Cullumber Company

The depreciation expense for machine 2 in 2016 is:

$16,200

Explanation:

a) Data and Calculations:

Machine Acquired Cost Salvage Value Useful Life Depreciation

(in years) Method

1 Jan. 1, 2015 $134,000 $34,000 10 Straight-line

2 July 1, 2016 81,000 11,100 5 Declining-balance

3 Nov. 1, 2016 77,500 8,500 6 Units-of-activity

Total machine hours expected = 34,500

Actual hours of use in the first 3 years were:

2016 730

2017 5,900

2018 7,600

Double-declining method:

Depreciation expense for machine 2 = $16,200 ($81,000 * 40% *6/12)

8 0

3 years ago

The following information is available for Quality Book Sales's sales on account and accounts receivable:

meriva

Answer:

1) Amount of uncollectible accounts expenses is $ 2,750

2) Net realizable value of receivables at the end of Year 2 is $65,040

Explanation:

Accounts Receivable Balance, January 1, Year 2 = $ 78,500

Allowance for Doubtful Accounts, January 1, Year 2 = $4,710

Sales on Account, Year 2 = $550,000

Collections of Accounts Receivable, Year 2 = $556,000

1) Amount of uncollectible accounts expenses = $550,000 ×0.5% = $ 2,750

2) Allowance for doubtful accounts, beginning balance = $4,710

Less: Write off = $ -2,850

Add: Uncollectible accounts expense for the year = $2,750

Allowance for doubtful accounts, ending balance = $4,610

Accounts receivable, Beginning balance =$78,500

Add: Credit sales = $550,000

Less: Collections = $-556,000

Less: Write off = $-2,850

Accounts receivable, Ending balance = $69,650

Less: Allowance for doubtful accounts, ending balance = $-4,610

Net realizable value = $65,040

4 0

3 years ago

Allowance for doubtful accounts is classified as a(n) ______ account and has a normal ______ balance.

Allowance for doubtful accounts is classified as a(n) account and has a normal balance.