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
WARRIOR [948]
3 years ago
11

Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $302,000 and credit sa

les are $1,000,000. An aging of accounts receivable shows that approximately 4% of the outstanding receivables will be uncollectible. What adjusting entry will Tanning Company make if the Allowance for Doubtful Accounts has a credit balance of $1,800 before adjustment?
Business
1 answer:
mr Goodwill [35]3 years ago
8 0

Answer:

Allowance for Doubtful Accounts has a credit balance of $1,800 before adjustment and has to be adjusted up to $12,080 by $10,280. by debiting 'Provisions for doubtful debts' and crediting 'Account Receivable'

Explanation:

If Tanning Company analyzes its receivables to estimate bad debt expense and the accounts receivable balance is $302,000 and the aging of accounts receivable shows that approximately 4% of the outstanding receivables will be uncollectible. Therefore the adjusting entry that Tanning Company will make if the Allowance for Doubtful Accounts has a credit balance of $1,800 before adjustment will be an 'increment to the current balance of $1,800 to be adjusted up to $12,080 by $10,280. This is done by debiting 'Provisions for doubtful debts' and crediting 'Account Receivable'

JOURNAL ENTRIES

Debit ..Provision for Doubtful Debts.......10,280

Credit.....Account Receivable..........................10,280

You might be interested in
Nordstrom, an upscale department store, has a well-known reputation for going the extra mile to serve its customers. This reputa
Flura [38]

Answer:

a sustainable competitive advantage

Explanation:

A sustainable competitive advantage -

It refers to the practice which the company need to inculcate , in order to sustain in the upcoming global market , is referred to as a sustainable competitive advantage .

The company need to have a good reputation along with good services for each of his customer , so that everyone enjoys the service without any discrimination , and this practice help the company to grow flourish in future .

Hence , from the given scenario of the question ,

The correct term is a sustainable competitive advantage .

5 0
3 years ago
Some estimates have been presented to Charlene, the Director of Operations (DO) at Holly Farms, which is considering alternative
Marina CMI [18]

Answer:

Answer is explained in the explanation section below.

Explanation:

Solution:

First, we need to sort out the data given properly, so that we can answer to the best.

Data Given:

For Chamber D103:

Installed Cost = -400,000 USD

Annual Operating Cost Per Year = -4000 USD

Salvage Value 10% of P = 40,000 USD

Life = 3 years

Similarly,

For Chamber 490G:

For Chamber D103:

Installed Cost = -250,000 USD

Annual Operating Cost Per Year = -3000 USD

Salvage Value 10% of P = 25,000 USD

Life = 2 years

a.

For Chamber D103

AW Chamber D103 = -400,000 x (A/P, 10%, 3) + 40000 x (A/F,10%, 3) - 4000

So,

(A/P, 10%, 3) = 0.40211    (from the compound interest table )

(A/F,10%, 3) = 0.30211

AW Chamber D103 = -400,000 x 0.40211 + 40000 x 0.30211 - 4000

AW Chamber D103 = -152,760 USD

For Chamber 490G:

AW Chamber 490G = -250,000 x (A/P,10%,2) + 25000 x (A/F,10%, 2) - 3000

So,

(A/P,10%,2) = 0.5762

(A/F,10%, 2) = 0.4762

AW Chamber 490G = -250,000 x 0.5762 + 25000 x 0.4762 - 3000

AW Chamber 490G = -135,143 USD

So, after evaluating both the chambers using the AW method, more economical is the chamber 490G.

b.

Now, we need to change the values to check whether the chamber selection can be changed or not:

so, New values for Chamber D103

P = -300,000 and Salvage value of 30,000

For Chamber D103

AW Chamber D103 = -300,000 x (A/P, 10%, 3) + 30000 x (A/F,10%, 3) - 4000

So,

(A/P, 10%, 3) = 0.40211    (from the compound interest table )

(A/F,10%, 3) = 0.30211

AW Chamber D103 = -300,000 x 0.40211 + 30,000 x 0.30211 - 4000

AW Chamber D103 = -115,570 USD

New Values for Chamber D103

P = -500,000 and the Salvage Value = 50,000

AW Chamber D103 = -300,000 x (A/P, 10%, 3) + 30000 x (A/F,10%, 3) - 4000

So,

(A/P, 10%, 3) = 0.40211    (from the compound interest table )

(A/F,10%, 3) = 0.30211

AW Chamber D103 = -500,000 x 0.40211 + 50,000 x 0.30211 - 4000

AW Chamber D103 = -189,950 USD

Hence,

At P = 300,000 will definitely change the selection to D103 Chamber.

8 0
3 years ago
Which of the following is most likely to be considered a profit center?
likoan [24]

Answer:

A. The grocery department of a Walmart Supercenter or Target Superstore

Explanation:

  • A profit center is a type of business where the business is expected to make into valuable contributions, a profit center can be treated as a separate business of the company.  
  • The profits and losses for that center are calculated separately. Examples of profit centers include the store, sales organization, or consulting organization.
3 0
3 years ago
Massena Corporation reported the following data for the month of February:
Elodia [21]

Answer:

$186,700

Explanation:

The computation of adjusted cost of goods sold is shown below:-

Before that we need to do the following calculations

Raw material consumed = Beginning raw material + Raw material purchases - Ending raw materials - Raw materials included in  manufacturing overhead costs  as indirect materials

= $40,000 + $63,000 - $24,000 - $5,000

= $74,000

Total manufacturing cost = Beginning work in progress + Raw material consumed + Direct labor cost + Manufacturing overhead cost - Ending work in progress

= $23,000 + $74,000 + $73,700 + $48,000 - $17,000

= $201,700

Unadjusted Cost of goods sold = Raw materials + Total manufacturing cost - Ending finished goods

= $50,000 + $201,700 - $72,000

= $179,700

Adjusted COGS = Unadjusted Cost of goods sold + Underapplied overhead

= $179,700 + ($55,000 - $48,000)

= $179,700 + $7,000

= $186,700

6 0
3 years ago
If the structural unemployment rate is 3%, the frictional unemployment rate is 2%, and the cyclical unemployment rate is 4%, the
Damm [24]

Answer:

False

Explanation:

In this scenario, the natural rate of unemployment would be 5% = 3% of frictional unemployment plus 2% of cyclical unemployment. The other type of unemployment that is part of the natural rate is not referenced in the question (surplus unemployment).

Cyclical unemployment is not added up because it is not part of natural unemployment.

In fact, what natural unemployment basically is, is unemployment that does not depend on business cycle, that is not cyclical. In that sense, cyclical unemployment is totally the opposite to natural unemployment, and you only reach a rate of natural unemployment, when cyclical unemployment is eliminated in a healthy economy.

5 0
3 years ago
Other questions:
  • Clean N Green is a two-year-old company that makes wind turbines. The business owner, Janelle, is struggling to compete. Finding
    11·1 answer
  • Ajax Inc. is one of the customers of a well-known linenmanufacturing company. Ajax has not ordered linen in some time, but when
    14·1 answer
  • The best description of a strong leader is someone who?
    12·2 answers
  • You are a U.S.-based treasurer with $1,000,000 to invest. The dollar-euro exchange rate is quoted as $1.60 = €1.00 and the dolla
    8·1 answer
  • When a corporation issues its capital stock in payment for services, the least appropriate basis for recording the transaction i
    11·1 answer
  • At the heart of every economic system is:
    5·2 answers
  • Process X has fixed costs of $10,000 and variable costs of $2.40 per unit. Process Y has fixed costs of $9,000 and variable cost
    6·1 answer
  • HELP ME PLEASE
    13·2 answers
  • As a holder of a share of common stock, you are A) entitled to a portion of the firm's revenues. B) entitled to a portion of the
    7·1 answer
  • Your firm needs a computerized machine tool lathe which costs $51,000 and requires $12,100 in maintenance for each year of its 3
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!