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Bond [772]
3 years ago
14

A company ages its accounts receivables to determine its end of period adjustment for bad debts. at the end of the current year,

management estimated that $15,750 of the accounts receivable balance would be uncollectible. prior to any year-end adjustments, the allowance for doubtful accounts had a credit balance of $375. what adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?
Business
2 answers:
lakkis [162]3 years ago
5 0

Answer:

Debit Bad Debt expense $ 15,375

Credit Allowance fro doubtful accounts $ 15,375

Explanation:

For the purpose of recording of bad debts expense on objective basis (i.e. using receivables aging), the closing balance amount of uncollectible allowance is to be <u>maintained</u> at certain amounts and the entry in the books of accounts is passed with the differential of the amounts.

In the given question, the company needs to have a closing balance of allowance for doubtful accounts against the receivables amounting to $ 15,750. However, the same account already shows a balance of $ 375. Therefore, an entry shall be passed with the difference of the above amounts i.e. $ 15,750 - $ 375 = $ 15,375

denis-greek [22]3 years ago
3 0
<span>Bad Debt Expense:  Debit; $16,125.00
Allowance for Doubtful Accounts:  Credit; $16,125.00

$15,750.00 + $375.00 = $ 16,125.00</span>
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Vadim26 [7]

Answer:

d) The change to the equilibrium price of French chocolate souffle is ambiguous and the equilibrium quantity of French chocolate souffle falls

Explanation:

Inferior goods are those goods whose demand falls with the rise in the income of the consumer.

As per the given case, French chocolate souffle is an inferior good. When income of the consumer rises, his demand for French chocolate souffle will fall.

Similarly, when producers of such an inferior good decrease, the supply of French chocolate souffle shall fall.

With respect to the original equilibrium level, the demand curve shall experience a leftward shift i.e decrease whereas the supply curve too experiences a leftward shift i.e supply falls.

At the new equilibrium level, definitely the equilibrium quantity shall fall, but the change in equilibrium price cannot be ascertained as per the given information.

4 0
3 years ago
Oceans inc., a seafood distributor, agrees to buy from paul, a commercial fisherman, any "overstock" of fish that paul catches i
Ede4ka [16]

Oceans inc., a seafood distributor, agrees to buy from paul, a commercial fisherman, any "overstock" of fish that paul catches in excess of his legal limit. This agreement is most likely void.

the act of agreeing or of coming to a mutual association. the kingdom of being in accord. An arrangement is ordinary with the aid of all events to a transaction. An agreement or different record delineating such an association. The unanimity of opinion; harmony in feeling: settlement of some of the individuals of the school.

An agreement is a promise between entities to grow mutual obligations with the aid of regulation. segment 2(e) of the Indian contract Act, 1872 defines an agreement as 'each promise and each set of promises, forming the attention for every other, is an agreement.

The definition of agreement manner is the act of coming to a mutual selection, position, or arrangement. An instance of an agreement is the choice among two human beings to percentage the lease in an apartment.

Learn more about agreements here brainly.com/question/1835508

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8 0
2 years ago
Parsons Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last
arsen [322]

Answer:

option (C) 32,750 hours

Explanation:

Data provided in the question:

Actual manufacturing overhead cost = $250,000

Overapplied overhead = $12,000

Predetermined overhead rate = $8.00 per direct labor-hour

Now,

The total Manufacturing Overhead applied last year

= Actual manufacturing overhead cost + Overapplied overhead

=  $250,000 + $12,000

= $262,000

Therefore,

Direct Labor Hours worked last year = \frac{\textup{Total Manufacturing Overhead applied}}{\textup{Predetermined overhead rate}}

or

=  \frac{\textup{262,000}}{\textup{8}}

= 32,750 hours

Hence,

The correct answer is option (C) 32,750 hours

6 0
3 years ago
Glumhoff​'s Packaging Department had the following information at July 31. All direct materials are added at the end of the conv
katovenus [111]

Answer:

Explanation:

The total equivalent units of direct materials and conversion costs for the month has been computed and attached.

Note that the conversion cost for the ending work in process was calculated as:

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Check the attachment for further analysis.

6 0
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In the given case, Kristin is also managing the information that is useful to the organisation.

Hence the correct option is B.

4 0
3 years ago
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