1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
azamat
3 years ago
14

Blain Company has $10,000 of accounts receivable that are current, $5,000 that are between 0 and 30 days past due, $3,000 that a

re between 30 and 60 days past due, and $800 that are more than 60 days past due. Bain estimates that 2% of the receivables that are current will be uncollectible, 5% of those between 0 and 30 days past due will be uncollectible, 10% of those between 30 and 60 days past due will be uncollectible, and 50% of those more than 60 days past due will be uncollectible. Just prior to recognizing uncollectible accounts expense, Blain's allowance for doubtful accounts account has a $100 positive balance. Assuming Blain uses the aging method to estimate uncollectible accounts expense, the amount of uncollectible expense will be ________
a. $1,300.
b. $1150
c. $900.
d. $1050.
Business
1 answer:
True [87]3 years ago
8 0

Answer:

d. $1050.

Explanation:

We multiply each account balance by the expected uncollectible amount and then addd them to get the expected total for doutful accounts

\left[\begin{array}{cccc}Date&Amount&Expected&uncollectible\\$not due&10000&0.02&200\\$up to 30&5000&0.05&250\\$up to 60&3000&0.1&300\\$more than 61&800&0.5&400\\&&Total&1150\\\end{array}\right]

Balance of the allowance account:  100

The expense will be the adjustment made on the allowance to get the expected balance of 1,150

1,150 - 100 = 1,050

we increase the allowance bu 1,050 to get our expected uncollectible fro maccounts receivable agaisnt the bad debt expense ofthe period.

You might be interested in
What is the purpose of cost accounting iss?
vitfil [10]

The main purpose of cost accounting is to find out the cost of the various processes in the business so that selling prices can be fixed appropriately.

<h3>What is cost accounting?</h3>

This is an accounting method that allows companies to find out the cost of various processes and transactions they embark on.

Knowing these costs will enable the company to know the price it can charge on goods so that it can recoup these costs and make profits.

Find out more on cost accounting at brainly.com/question/24516871.

#SPJ12

3 0
1 year ago
How is the price elasticity of demand​ measured? A. by multiplying the percentage change in the​ product's price by the percenta
Lapatulllka [165]

Answer:

How is the price elasticity of demand​ measured?

c. by dividing the percentage change in the quantity demanded of a product by the percentage change in the product's price

Explanation:

Price elasticity of demand (PED or Ed) is a measure used in economics to show the responsiveness, or elasticity, of the quantity demanded of a good or service to a change in its price when nothing but the price changes. More precisely, it gives the percentage change in quantity demanded in response to a one percent change in price.

8 0
2 years ago
Read 2 more answers
Swifty's Market used the perpetual method to record the following events involving a recent purchase of inventory:
butalik [34]

Answer:

Inventory balance will be of 73,318

Explanation:

Inventory                     75,400

     Account payable                75,400

to record goods received

Account payable           1,300

           Inventory                          1,300

to record return of goods

Inventory                          700

            Cash                                  700

to record payment of freight

Account Payable        74,100

            Inventory                         1,482

            Cash                              72,618

to record payment of invoice within discount period

75,400 - 1,300 = 74,100

74,100 x 2% = 1,482

Inventory balance:

<em>   DEBIT         CREDIT</em>

 75,400

                       1,300

      700

                       1,482

<u><em>balance: </em></u>

  73,318

8 0
2 years ago
The amount of a good that must be given up to produce another good is the concept of:
Vesna [10]
E.) Opportunity cost is the cost associated with giving up one opportunity for the benefit earned by another.
3 0
3 years ago
Wild Swings Inc.’s stock has a beta of 2.5. If the risk-free rate is 6% and the market risk premium is 7%, what is an estimate o
Bess [88]

Answer:

r = 0.235 or 23.5%

Explanation:

Using the CAPM, we can calculate the required/expected rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.  

The formula for required rate of return under CAPM is,

r = rRF + Beta * rpM

Where,

  • rRF is the risk free rate
  • rpM is the market return

r = 0.06 + 2.5 * 0.07

r = 0.235 or 23.5%

3 0
3 years ago
Other questions:
  • In the united states, about _____ of employees work a traditional work schedule
    6·1 answer
  • A city government imposes a proportional income tax on all people who earn income within its city limits. In​ 2004, the​ city's
    14·1 answer
  • If you are required to show proof of financial responsibility for the future, for how many years must the proof be kept? 1 year
    7·1 answer
  • Explain why accurate measurement is so important in baking.
    7·1 answer
  • Marketing research conducted by a consumer products producer reveals that some consumers buy toothpaste to whiten their​ teeth,
    15·1 answer
  • Pluralistic ignorance efffect. How to apply in business administration? Give example
    15·1 answer
  • According to Okun's law, when cyclical unemployment increases by one percentage point, the recessionary gap ______ by ______ per
    7·1 answer
  • Prepare journal entries to record each of the following four separate issuances of stock.
    15·1 answer
  • 1. The advantage of trade is a very important concept in economics. In examining trade between two individuals or two countries,
    6·1 answer
  • Country a specializes in the production of rice because it can do so efficiently, but it imports electronics because it is not a
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!