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marin [14]
3 years ago
5

At the beginning of the year, Kullerud Manufacturing had a credit balance in its allowance for doubtful accounts of $10,670, and

at the end of the year it was a credit balance of $11,240. During the year, Kullerud made credit sales of $1,270,990, collected receivables in the amount of $1,240,830, and recorded bad debt expense of $42,550.
Required:

Compute the amount of receivables that Kullerud wrote off during the year.
Business
1 answer:
cluponka [151]3 years ago
3 0

Answer:

$41,980

Explanation:

Allowance for doubtful account records the yearly estimated charge of bad debt expense. It ahd credit nature because it is an contra account receivable account. A bad debt write off is also recorded in this account. Account recivable balance on balance sheet is reported after adjusting Allowance for doubtful account balance.

Allowance for doubtful account

Ending Balance = Beginning Balance + Bad debt Expense for the year - Receivable written off

$11,240 = $10,670 + $42,550 - Receivable written off

$11,240 = $53,220 - Receivable written off

Receivable written off = $53,220 - $11,240 = $41,980

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In 2003, the fraudulent accounting practices at ____________, a Houston-based energy company, was the largest of several busines
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Answer: Enron

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4 0
3 years ago
Wilder Company manufactures two models of its banjo, the Basic and the Luxury. The Basic model requires 10,000 direct labor hour
OLEGan [10]

Answer:

The inspecting costs should be allocated to the Basic model using ABC costing is $30,600

Explanation:

The computation of the inspecting cost is shown below:

= Total number of basic model inspection + the total number of inspection

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And, the total number of inspection equals to

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Now put these values to the above formula  

So, the value would equal to

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7 0
3 years ago
Malko Enterprises’ bonds currently sell for $1,050. They have a 6-year maturity, an annual coupon of $75, and a par value of $1,
scoundrel [369]

Answer:

Current yield = 7.14%

Explanation:

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this rate represents for an investor would expect to earn because face vale and market price of bonds differs so the investor much rely on that factor.

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Suppose a market is initially perfectly competitive with many firms selling an identical product. Over time, however, suppose th
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3 0
1 year ago
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