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Keith_Richards [23]
3 years ago
6

A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's una

djusted trial balance reported the following selected amounts: Accounts receivable $ 352,000 debit Allowance for uncollectible accounts 630 debit Net Sales 797,000 credit All sales are made on credit. Based on past experience, the company estimates that 0.5% of net credit sales are uncollectible. What amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared?
Business
1 answer:
wlad13 [49]3 years ago
5 0

Answer:

$3,355

Explanation:

Accounts receivables = $ 352,000

Debit Allowance for uncollectible accounts = 630

Net Sales = $797,000

The company estimates that 0.5% of net credit sales are uncollectible

Estimates of uncollectible receivables

= 0.5% × $797,000

=$3985

This is the total amount to be recognized at the end of the year as Bad Debts Expense. Since a debit of $630 has been recognized already, additional debit required

= 3985 - 630

= $3,355

The amount to be debited to Bad Debts Expense when the year-end adjusting entry is prepared is $3,355.

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Answer:

Secondary market.

Explanation:

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Hence, the security will be sold by the investor in the so-called secondary market.

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3 years ago
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3 years ago
The simple interest rate is 7% per year. if james deposits 10,000 at the end of 18 months coursehero
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4 0
1 year ago
Smith Corporation makes and sells a single product called a Pod. Each Pod requires 2.4 direct labor-hours at $10.60 per direct l
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Answer:

$585,120

Explanation:

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Answer:

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