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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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Answer:

a

Explanation:

Opportunity costs refers to the options that are lost when making a choice between many options. According to my research on opportunity costs in different situations, I can say that based on the information provided within the question the opportunity cost of this exchange the total value of the television, headphones, and bicycle. This is because by choosing the printer he is ultimately losing out on the opportunity of choosing any of the other three items.

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3 years ago
Production records show that there were 440 units in the beginning inventory, 30% complete, 1,440 units started, and 1,600 units
Nimfa-mama [501]

Answer and Explanation:

The computation is shown below:

a. The number of units processed is

= Beginning work in process units + completed and started units - transferred out units

= 440 units + 1,440 units - 1,600 units

= 280 units

b. The material cost per unit is

= Total cost ÷ equivalent units

where,

Total cost is

= Opening work in process + material cost

= $2,220 + $6,610

= $8,830

And, the equivalent units is

= Units transferred out + ending work in process

= 1,600 + 280

= 1,880

So, the material cost per unit is

= $8,830 ÷ 1,880 units

= $4.70

c. The conversion cost per unit is

= Total cost ÷ equivalent units

where,

Total cost is

= Opening work in process + labor cost + overhead cost

= $1,720 + $4,800 + $1,300

= $7,820

And, the equivalent units is

= Units transferred out + ending work in process × completion percentage

= 1,600 + 280 × 40%

= 1,712

So, the material cost per unit is

= $7,820 ÷ 1,712 units

= $4.57

8 0
3 years ago
Firms issue callable bonds to give them financing flexibility in case future interest rates. True or False
AURORKA [14]

true is the answer for sure !!

7 0
3 years ago
Read 2 more answers
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Nookie1986 [14]

Answer:

Margin of safety= $12,000

Explanation:

Giving the following information:

Moe's Pizza Shop sells a large pizza for​ $12.00. Unit variable expenses total​ $8.00. The breakeven sales in units are​ 7,000 and budgeted sales in units are​ 8,000

To calculate the margin of safety in dollars, we need to use the following formula:

Margin of safety= (current sales level - break-even point)

Margin of safety= (8,000*12) - (7,000*12)= $12,000

3 0
3 years ago
Cash Flows. Quick Computing currently sells 10 million computer chips each year at a price of $20 per chip. It is about to intro
Tema [17]

Answer:

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Explanation:

For calculating the present value, all the cost and revenue will be considered.

Original revenue = Sale of 10 million chips

10 million \times $20 = $200 million

Less: Cost = 10 million \times $6 = $60 million

Net Revenue = $140 million

In case of introducing new chips

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Net Revenue = $360 - 114 = $246 million

Since net revenue has increased from $140 million to $246 million = $106 million by considering all costs thus all the costs and revenue shall be considered.

3 0
2 years ago
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