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
SVEN [57.7K]
3 years ago
10

At the end of the current year, Accounts Receivable has a balance of $2,150,000; Allowance for Doubtful Accounts has a debit bal

ance of $10,500; and sales for the year total $51,850,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $110,000.
Business
1 answer:
pishuonlain [190]3 years ago
5 0

The amount for adjusting entry of uncollectible accounts is $120,500.

The adjusted balance of accounts receivable shall be $2,150,000.

The adjusted credit balance for the allowance of doubtful accounts is $110,000.

The adjusted debit balance of bad debts expense is $120,500.

The net realizable value of accounts receivable is $2,040,000.

<u>Explanation:</u>

step 1. The allowance for doubtful accounts = unadhusted balance plus adjusted balance

= $10500 plus $110000 = $120500

The amount of adjusting entry for uncollectible accounts is $120500

step 2. the adjusted balance of accounts receivable shall be $2150000

The unadjusted balance of accounts receivable will also be the adjusted balance of accounts receivable as there is no bad debt expense that is to be adjusted from accounts receivable. Therefore, the adjusted balance at the end of the current year is $2,150,000.

step 3. The allowance for doubtful accounst is as follows

Adjusted balance = bad debt minus unadjusted balance

= $120500 minus $10500 = $110000

The adjusted credit balance for the allowance of doubtful accounts is $110,000.

step 4. adjusted bad debt expense = $10500 plus $110000 = $120500

The adjusted debit balance of bad debts expense is $120,500.

step 5. net realizable value = $2150000 minus $110000 = $2040000

The net realizable value of accounts receivable is $2,040,000.

You might be interested in
The Pastel Paint Company recently loaned $300,000 to KIX 96, a local radio station. The radio station signed a noninterest-beari
VladimirAG [237]

Answer:

Following are the queries to these question:

Explanation:

Reporting entering for recording the note received

Permissible notes (face amount)........................................................  \$300,000

Cash................................................................................................... \$300,000

7 0
3 years ago
Percy Corporation was formed on January 1. The corporate charter authorized 100,000 shares of $10 par value common stock. During
dimulka [17.4K]

Answer:

paid in capital in excess of par value = $2000

and There will be a debit to Organisation expenses for $4,700

Explanation:

given data

charter authorized = 100,000 shares

common stock = $10 par value

issued  = 270 shares      

payment = $4,700        

solution

we know here that

Paid up value of the stock = $10 per share

and here shares issue to the attorney satisfying the organisation expenses is 270 shares

so common stock = 270 shares × $10

common stock =  $2700

so paid in capital in excess of par value = $2000

and There will be a debit to Organisation expenses for $4,700

8 0
3 years ago
Suppose that in 2010, the producer price index increases by 1.5 percent. as a result, economists most likely will predict that?
DiKsa [7]

Suppose in 2010, the producer price index increases by 1.5 percent. As a result, the economists are most likely to predict that the consumer price index will increase in the future.

The producer price index is used in order to measure inflation from the perspective of costs to industry. Thus, the producer price index measures the cost of a group of goods and services which are purchased by firms.

Whereas the consumer price index refers to an average of the prices received by producers of goods and services at all the stages of the production process. Thus, when the producer price index increases by 1.5 percent, this is the indication that consumer price index will increase in the future.

Hence, higher producer prices means that consumers will pay more when they buy.

To know more about producer price index here:

brainly.com/question/6335529

#SPJ4

3 0
2 years ago
Which of the following is an example of a hidden variable? Quality of life is a hidden variable because it cannot be measured di
My name is Ann [436]

Answer:

<u>Quality of life is a hidden variable because it cannot be measured directly but must be inferred from measurable variables such as wealth, success, and environment. </u>

Explanation:

<u>Hidden variable:</u> The term "hidden variable" is described as the proposition that specific "statistical models" of any physical systems, for example, Quantum mechanics are being incomplete inherently, and along with this the apparent randomness of a particular system is being dependent not on "collapsing functions" but instead it is due to any unmeasurable or unseen or hidden variables.

8 0
3 years ago
On April 1, 2016, the KB Toy Company purchased equipment to be used in its manufacturing process. The equipment cost $57,200, ha
Harman [31]

Answer:

2016 Depreciation

Dr depreciation expense $5720

Cr Accumulated depreciation               $5720

2017 Depreciation

Dr depreciation expense $5720

Cr Accumulated depreciation               $5720

Journal entries for 2018 expenditure

Dr repairs and maintenance   $2900

Dr Equipment account             $11850

Cr Cash account                                          $14750

2018 Depreciation

Dr depreciation expense          $4800.83

Cr Accumulated depreciation                     $4800.83

Explanation:

There are two policies for depreciating non-current asset  especially when it is acquired part-way through the year like we have here, namely full year depreciation in the year of purchase and none in the year of disposal or proportional depreciation throughout the useful life,I am adopting the former in this question.

Formula for depreciation=cost-residual value/useful life

Yearly depreciation is ($57200-$0)/10=$5720

However,after two years the book value is calculated thus:

Book value=$57200-($5720*2)=$45760

additional cost incurred in enhancing the capacity of the asset would be added :  $45760 +$11,850=$57610

Since the useful life has also been reviewed up to 12 years, the depreciation from now on is $57610/12=$4800.83

5 0
3 years ago
Read 2 more answers
Other questions:
  • Georgia Crane is allowed to create her own work hours on a limited basis. She must be a work from 9 a.m. to 11 a.m. and 1 p.m. t
    15·1 answer
  • The cleanest, most comfortable restaurant in town and the staff is always impeccably dressed and very courteous. Based on this f
    10·1 answer
  • To maximize profits, firms produce an output where marginal product of labor per dollar equals the marginal product of capital p
    11·1 answer
  • ​Noah's sporting goods is having difficulty attaining the credit it needs to expand. what should the company do in order to alle
    13·1 answer
  • Florida Keys Construction installs swimming pools. It calculates that warranty obligations are 3% of sales. For the year just en
    5·1 answer
  • Modern environmentalism works with businesses to promote sustainable development. Please select the best answer from the choices
    6·2 answers
  • By​ studying, Will can produce a higher​ grade, ​, on an upcoming economics exam. His production function depends on the number
    12·1 answer
  • Suppose you would like to make a global change to the font type and font color for all slides with the comparison layout. Which
    9·1 answer
  • Blue Dog Manufacturing Corp. just reported a net income of $7,000,000, and its current stock price is $23.00 per share. Blue Dog
    7·1 answer
  • Samantha is a single mother raising two young children. In 2015, she was let go from her assembly line job at the car plant wher
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!