debit to Bad Debt Expense for $3,800
<h3>What is
Bad Debt Expense ?</h3>
When a receivable is no longer collectible because a customer is unable to fulfil their obligation to pay an outstanding debt due to bankruptcy or other financial problems, a bad debt expense is recognised.
If a company with $2,000,000 in sales expects 2% of sales to be uncollectible, their bad debt expense would be $40,000 ($2,000,000 * 0.02). Consider a roofing company that agrees to replace a customer's roof on credit for $10,000.
Are bad debts a cost or a liability? Bad debts are an expense to the business rather than a liability because the amount expected to be received from the debtor is irrecoverable and has a negative impact on the books of accounts by reducing accounts receivable.
To know more about Bad Debt Expense follow the link:
brainly.com/question/18568784
#SPJ4
Answer:
Debit supplies expense $2,200
Credit office supplies $2,200
Explanation:
The beginning balance of $1,600 plus the purchases of $1,800 makes an available office supplies balance for the period in the amount of $3,400. A year-end physical count of $1,200 constitutes the remaining supplies balance at the period after they used up the $2,200 portion ($3,400 - $1,200). The appropriate journal entry at the year end is to recognize the expense portion of the supplies. Therefore, we have to debit supplies expense and credit office supplies in the amount of $2,200.
Answer:
a. 575 units
b. 107.83 orders
c. 3.38 days
Explanation:
a. The computation of the economic order quantity is shown below:
= 
where,
Annual demand = 62,000 disk
Ordering cost = $16
Carrying cost = $0.25 × 24% = $6
Now put these values to the above formula
So, the value would equal to
= 
= 575 units
b. The number of orders would be equal to
= Annual demand ÷ economic order quantity
= 62,000 ÷ 575 units
= 107.83 orders
c. The frequently order would be
= Total number of days in a year ÷ number of orders in a year
= 365 days ÷ 107.83 orders
= 3.38 days
