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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:

Threaten to tell- is correct

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4 0
4 years ago
One autumn day, a woman and man appear at Carrie Franklin’s door. They introduce themselves as chimney sweeps who would like to
k0ka [10]

The things which Carrie Franklin can do to<em> protect herself </em>from possible scam include:

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  • Next thing would be to enquire if the office sent anybody to her home.
  • Next thing would be to ask for their ID cards.

Based on the given question, we can see that Carrie Franklin received some visitors who claimed to be chimney sweepers from a company and she would<em> have to pay them</em> for cleaning her chimney.

It is important that she verifies that they are a legitimate company then look them up in the telephone listing and if she has any additional suspicions she can call the police just to be safe.

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6 0
3 years ago
Marshall has received an inheritance and wants to invest a sum of money today that will yield $4,300 at the end of each of the n
anastassius [24]

Answer:

$2,639.83  

Explanation:

The value expected in the next 10 years is known as the future value while the amount to be invested today is the present value amount, hence, using the formula below which relates the present value to the future value, we can determine the present value as appropriate:

PV=FV/(1+r)^n

PV=present value=the unknown

FV=future value=$4,300

r=rate of return=5%

n=number of years that investment would last =10

PV=$4,300/(1+5%)^10

PV=$4,300/1.05^10

PV=$4,300/1.62889463

PV=$2,639.83  

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4 0
3 years ago
John Gercke is an employee of The Woolson Company. During the first part of the year, he earned $6,800 while working in State A.
-Dominant- [34]

Answer: Option (a) 285.60 is correct.

Explanation:

Given that,

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and Woolson company's tax rate in state A = 4.2%

Hence,

John will have to pay tax on $6800 at a rate of 4.2%

⇒ \frac{4.2}{100} \times 6800

= 285.60 ⇒  This is the SUTA tax that the company paid to State A.

Therefore, Option (a) is correct.

7 0
4 years ago
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