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Alenkinab [10]
1 year ago
12

An aging of a company's accounts receivable indicates that $4920 are estimated to be uncollectible. If Allowance for Doubtful Ac

counts has a $940 credit balance, the adjustment to record bad debts for the period will require a debit to Bad Debt Expense for $4920. credit to Allowance for Doubtful Accounts for $4920. debit to Allowance for Doubtful Accounts for $3980. debit to Bad Debt Expense for $3980.
Business
1 answer:
Ronch [10]1 year ago
6 0

debit to Bad Debt Expense for $3,800

<h3>What is Bad Debt Expense ?</h3>

When a receivable is no longer collectible because a customer is unable to fulfil their obligation to pay an outstanding debt due to bankruptcy or other financial problems, a bad debt expense is recognised.

If a company with $2,000,000 in sales expects 2% of sales to be uncollectible, their bad debt expense would be $40,000 ($2,000,000 * 0.02). Consider a roofing company that agrees to replace a customer's roof on credit for $10,000.

Are bad debts a cost or a liability? Bad debts are an expense to the business rather than a liability because the amount expected to be received from the debtor is irrecoverable and has a negative impact on the books of accounts by reducing accounts receivable.

To know more about Bad Debt Expense  follow the link:

brainly.com/question/18568784

#SPJ4

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Question 8 of 10
kirill115 [55]

Answer:

A. A balance sheet shows the total assets, liabilities, and owner's

equity at the end of the period

Explanation:

As we know that

The income statement recognized only the income earned and expenses incurred of an organization

While on the other hand the balance sheet shows the financial position, profitability of the company. It involves assets, liabilities and stockholder equity

So according to the given options, the option A is correct

hence, the rest of the options would be incorrect

6 0
3 years ago
In calculating a predetermined overhead rate, a recent trend in automated manufacturing operations is to choose an activity base
iragen [17]

Answer: c. machine hours.

Explanation:

In reference to Automated Operations, the Activity base that is usually used to in determining a pre-determined overhead rate are Machine hours.

It is standard practice to relate overhead to the Direct Labor involved in the production of a commodity and since in this case the direct Labor mostly consists of Machines (Automated) then it is best to relate activities to the Machine hours involved instead.

7 0
3 years ago
Which of the following terms refers to a practice of allowing the addition of new employees and jobs to existing bargaining unit
Serjik [45]

Answer:

d. accretion

Explanation:

Accretion is the process by which new employees are added to a bargaining unit where they have common interest. It involves the gradual growth of business units. For example when unions transfer workers to a new employer.

Accretion occurs without election and is usually an operation of the law.

It helps preserve industrial stability by filling new jobs without going through an adversarial election process.

5 0
3 years ago
The deadweight loss associated with output less than the competitive level can be determined by A. subtracting the consumer surp
SSSSS [86.1K]

Answer:

C. subtracting the competitive level producer surplus from the producer surplus associated with less output

Explanation:

A deadweight loss refers to a cost to society created as a result of market inefficiency. Market inefficiency occurs when supply and demand are out of equilibrium. It is also known as excess burden.

Deadweight loss is also created due to taxes as they prevent people from purchasing things that they would otherwise as the final price of the product increases.

The deadweight loss associated with output less than the competitive level can be determined by subtracting the competitive level producer surplus from the producer surplus associated with less output

7 0
2 years ago
Activity-based costing uses Group of answer choices departmental pools and a single cost driver. numerous cost pools and numerou
avanturin [10]

Answer:

numerous cost pools and numerous cost drivers.

Explanation:

Costing is the measurement of the cost of production of goods and services by assessing the fixed costs and variable costs associated with each step of production.

In Financial accounting, a direct cost can be defined as any expense which can easily be connected to a specific cost object such as a department, project or product. Some examples of direct costs are cost of raw materials, machineries or equipments.

On the other hand, any cost associated with the running, operations and maintenance of a company refers to indirect costs. Some examples of indirect costs are utility bill, office accessories, diesel etc.

An activity-based costing (ABC) can be defined as a method of costing that identifies the numerous activities in a business firm and assigns the cost of each activity to their respective drivers based on their consumptions.

Activity-based costing (ABC) uses numerous cost pools and numerous cost drivers.

Generally, an activity-based costing uses multiple cost pools such as manufacturing cost or customer services and multiple cost drivers such as direct labor hours worked, number of changes used in engineering department, etc.

Cost pool is simply the amount of money spent by a firm on a particular activity.

In activity-based costing, the activity rate for an activity cost pool is calculated by using the following formula;

Activity rate = total overhead cost/activity for the activity cost pool.

7 0
3 years ago
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