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Serhud [2]
3 years ago
8

On December 31 of the current year, the unadjusted trial balance of a company using the percent of receivables method to estimat

e bad debt included the following: Accounts Receivable, debit balance of $98,700; Allowance for Doubtful Accounts, credit balance of $1,111. What amount should be debited to Bad Debts Expense, assuming 6% of outstanding accounts receivable at the end of the current year are estimated to be uncollectible?
Business
1 answer:
Ymorist [56]3 years ago
3 0

Answer: $4,811

Explanation:

Assuming 6% of outstanding accounts receivable at the end of the current year are estimated to be uncollectible that would be,

= 6% * 98,700

= $5,922

The Allowance for Doubtful Accounts acts as a buffer for the business when bad debts are incurred.

Bad debts are taken from the Allowance as the Allowance has already been removed from the Receivables.

In cases where Bad debts exceed the buffer in the Allowance for Doubtful Debt Account we take everything in it and the remaining bad debt amount is debited to Bad Debt expense.

That would be,

= 5,922 - 1,111

= $4,811

$4,811 is the amount that should be debited to Bad Debts Expense.

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3 0
2 years ago
Coronado Company sells merchandise on account for $4600 to Wildhorse Company with credit terms of 2/10, n/30. Wildhorse Company
telo118 [61]

Answer:

$3,528

Explanation:

The computation of the amount of the check after considering the discount period is shown below:

= Sale value fo merchandise - returned goods - discount paid

= $4,600 - $1,000 - $3,600 × 2%

= $3,600 - $72

= $3,528

By applying the above formula we can get the amount of the check and the same is to be considered

hence, the amount of the check is $3,528

6 0
3 years ago
Ramos Company has the following unit costs: Variable manufacturing overhead$15 Direct materials 13 Direct labor 17 Fixed manufac
zhannawk [14.2K]

Answer:

Unitary cost= $56

Explanation:

Giving the following information:

Variable manufacturing overhead $15

Direct materials $13

Direct labor $17

Fixed manufacturing overhead $12

Fixed marketing and administrative $11

Under absorption costing, the fixed overhead is allocated to the product cost:

Unitary cost= direct material + direct labor + variable overhead + fixed overhead

Unitary cost= 13 + 17 + 15 + 11= $56

3 0
3 years ago
Select each of the tasks associated with opening a checking account.
garri49 [273]

Tasks associated with opening a checking account are:

  • Provide information such as name, address, date of birth, and Social Security Number.
  • Provide identification.
  • Deposit at least the minimum balance.
  • Sign an authorization card.

A checking account makes it simple to access your money for daily transactions while also keeping it safe. Typically, customers can pay their bills or make purchases using a debit card or a cheque. Different methods may be available for accounts to help avoid the monthly service charge.

A checking account's main function is to store your money in a safe location for a brief period of time, making it accessible when you need it to cover bills and other costs.

Customers who open checking account consent to make deposits into the account, and in return, the bank is obligated to carry out their payment instructions.

Before creating a checking account, it is important to weigh your options and find out whether or not the entity will charge you for maintaining the account and any related items. Being of legal age and fulfilling the conditions established by the chosen financial institution are the second prerequisites you must meet in order to open a checking account.

To know more about checking accounts refer to:  brainly.com/question/17014586

#SPJ1

5 0
2 years ago
Customers learn to trust companies that consistently demonstrate good behavior. Those same companies can lose this position with
Luden [163]

Answer: True.

Explanation:

A business brand earns a customer's trust gradually with time, by consistency and honesty on the part of the business brand. This customer trust can easily be lost, if the business brand is engaged in even a little scandal or reckless act.

3 0
3 years ago
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