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Yakvenalex [24]
1 year ago
5

at the end of the first year of operations, gaur manufacturing had gross accounts receivable of $251,000. gaur's management esti

mates that 6% of the accounts will prove uncollectible. what journal entry should gaur record to establish an allowance for uncollectible accounts?
Business
1 answer:
Butoxors [25]1 year ago
8 0

The journal entry to establish an allowance for uncollectible accounts is as follows

Bad debt expense A/c Dr  $15,060

 To Allowance for doubtful debts  $15,060

(Being bad debt allowance recorded)

The bad debt expense is calculated as shown below, as 6% of the accounts are proven uncollectible.

$251,000x 6/100

$2510x 6

=$15,060

In order to make the proper posting, we debited the bad debt expense and credited the allowance for doubtful debts account.

A bad debt expense is recognized when a receivable is no longer collectable as a result of a customer's inability to pay an outstanding debt due to bankruptcy or other financial troubles.

To know more about bad debt  refer here:

brainly.com/question/28993708#

#SPJ4

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What is the term given to mortgage loan costs such as pest inspections, survey fees, and title insurance?
vichka [17]

Answer:

Services the borrower did shop for, that the buyer may find on his own.

Explanation:

Services such as a pest inspection or title insurance are services that the buyer of a house usually want, but are not mandatory for them to purchase. Therefore usually buyers must search for them on their own since they are not required by a bank.

They are different than services that a lender requires like home insurance, which a buyer must purchase.

3 0
3 years ago
Which of the following statements about income taxes is not correct?
Anastaziya [24]

The correct statement regarding the income tax is Deductible temporary differences give rise to deferred tax liabilities, meaning that more tax is payable in the future. hence option C is correct

<h3>What is income tax?</h3>

A tax placed on people or organizations in relation to their income or profits is known as an income tax. Tax rates multiplied by taxable income are typically used to calculate income taxes. Tax rates might change depending on the taxpayer's attributes and source of income.

The complete part of the question is below:

A) Review Later Income tax expense includes both the amount of tax payable in the current period and the amount of tax due in future periods.

B)Income taxes are based on taxable income and not accounting income.

C)Deductible temporary differences give rise to deferred tax liabilities, meaning that more tax is payable in the future.

D)Deferred taxes arise because of temporary differences between the tax base and the carrying amount of assets and liabilities on the balance sheet.

Hence option C is correct.

Learn more about income tax:

brainly.com/question/17075354

#SPJ1

7 0
2 years ago
Willingness to pay Group of answer choices measures the value that a buyer places on a good. is the amount a seller actually rec
gtnhenbr [62]

Answer:

measures the value that a buyer places on a good.

Explanation:

A product can be defined as any physical object or material that typically satisfy and meets the demands, needs or wants of customers. Some examples of a product are mobile phones, television, microphone, microwave oven, bread, pencil, freezer, beverages, soft drinks, etc.

Willingness to pay measures the value that a buyer places on a good or product. Thus, when this value is high, the customer would ultimately buy a product and vice-versa.

5 0
2 years ago
you have $6000 to invest in two stock funds. The first fund pays 5% annual interest and the second account pays 9% annual intere
stira [4]

Answer:

Amount of money invested is $2,000 and $4,000

Explanation:

In this question, we are asked to calculate how much was invested in two different accounts given the amount of money invested in both accounts.

Let the amount of money invested in both accounts be a and b respectively.

Mathematically;

A + B = 6000 ......I

Now we use the formula for simple interest to check the amount that is supposed to be made on Both accounts if he end of a year.

Formula for simple interest is I = PRT/100

Let’s apply this to what is on ground:

5*1* a/100 = 5a/100

Second is

9*b*1/100 = 9b/100

That is 5a + 9b = 38,000. ........ii

Solving Both simultaneously as follows:

Let A = 6000-b from 1

Substitute this into 2

5(6000-b) + 9b = 38,000

30,000 -5b + 9b = 38,000

4b = 8,000

b =$2000

This means a would be 6000 - 2,000 = $4000

8 0
3 years ago
Concord Company has recently tried to improve its analysis for its manufacturing process. Units started into production equaled
Readme [11.4K]

Answer:

the material cost per unit is $4.60 per unit

Explanation:

The computation of the material cost per unit is shown below:

= Total material cost ÷ equivalent units of material

= $86,940 ÷ (18,900 - 1,000) × 100% + 1,000 × 100%

= $86,940 ÷ (17,900 + 1,000)

= $86,940 ÷ 18,900

= $4.60 per unit

Hence, the material cost per unit is $4.60 per unit

The same should be considered and relevant

5 0
3 years ago
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