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
Keith_Richards [23]
2 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]2 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.

You might be interested in
A corporation issued $580000, 10%, 5-year bonds on January 1, 2020 for $626400, which reflects an effective-interest rate of 7%.
ioda

Answer:

The correct answer is option (B).

Explanation:

According to the scenario, the given data are as follows:

For Jan.1,2020 value = $626,400

Interest rate = 7%

So, we can calculate the amount of bond interest expense by using following formula:

Interest Expense = Carrying Value × Market Interest Rate

By putting the value of following

Interest expense = $626,400 × 7%

= $626,400 × 0.07

= $43,838

Hence, the amount of bond interest expense to be recognized on December 31, 2020, is $43,838.

7 0
3 years ago
A the production possibilities frontier (PPF) is bowed outward as a result of:_________
vodomira [7]

Answer: 2) increasing opportunity costs.

Explanation:

The Production Possibilities frontier is bowed out as it shows that for one more unit of a good to be produced, an additional unit of the other good must be given up.

This represents increasing opportunity costs because opportunity cost is the cost we incur for choosing one alternative over another. By producing more and more of one good, we give up more and more of the other good which means that our opportunity cost rises.

8 0
3 years ago
Jerry's company is beginning a new project, and he has been assigned to find a telecommunications tool that will improve operati
lions [1.4K]

true because you need to look and evaluate the details provided

8 0
3 years ago
Read 2 more answers
A study has been conducted to determine if one of the departments in MSU Company should be discontinued. The contribution margin
SOVA2 [1]

Answer:

c. decrease by $10,000 per year.

Explanation:

The contributing margin of a business is sales revenue less the variable cost to produce the product

Contributing margin refers to the profit that is free to be used by the business to pay fixed costs and reserve as net profit.

In this scenario if the department is discounted the fixed expense will reduce by $40,000

This implies that the net income will increase by $40,000 if the department is discontinued.

If the department is discontinued income from the department will reduce by $50,000. That is -$50,000

Net income= -50,000 + 40,000= -$10,000

4 0
3 years ago
Tower Inc. owns 30% of Yale Co. and applies the equity method. During the current year, Tower bought inventory costing $66,000 a
Murrr4er [49]

Answer:

the amount deferred by tower as intra-entity gross profit: 3,240

Explanation:

120,000 sales with a cost of 66,000

remains at year-end:

 24,000 with a cost of:  66,000/120,000 x 24,000 = 13,200

gross profit: 24,000 - 13,200 = 10,800

For this rgoss profit we are going to deferre the 30%;

10,800 x 30% =  3,240

4 0
2 years ago
Other questions:
  • Someone who wants the credentials of skilled training, but in less time than a four-year degree should consider
    13·1 answer
  • Factor Co. can produce a unit of product for the following costs: Direct material $ 8 Direct labor 24 Overhead 40 Total product
    11·1 answer
  • Which of the following is not one of the reasons to document your secondary sources? It shows your audience that you have suffic
    9·1 answer
  • Why wouldn’t investment and saving flows at full employment always be equal?
    9·1 answer
  • Roland Company uses special strapping equipment in its packaging business. The equipment was purchased in January 2016 for $10,0
    11·1 answer
  • Under current accounting practice, intangible assets are classified as specifically identifiable or goodwill-type. limited-life
    14·1 answer
  • A monthly water bill (in dollars) is a linear function of the amount of water the hose uses (in hundreds of cubic feet, HCF) the
    7·1 answer
  • Johnstone’s Realty is a new discount, menu-based brokerage firm. Its approach usually results in a lower listing commission rate
    12·1 answer
  • A bond par value is $1,000 and the coupon rate is 5.1 percent. The bond price was $946.02 at the beginning of the year and $979.
    6·1 answer
  • Lance contributed investment property worth $640,000, purchased three years ago for $245,000 cash, to Cloud Peak LLC in exchange
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!