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vredina [299]
3 years ago
10

Domino Company uses the percent of receivables method to estimate uncollectible accounts expense. Domino began 2016 with balance

s in Accounts Receivable and Allowance for Doubtful Accounts of $47,850 and $3,800, respectively. During the year, the company wrote off $2,820 in uncollectible accounts. In preparation for the company's 2016 estimate, Domino prepared the following aging schedule:
Number of Days Past Due Receivables Amount % Likely to be Uncollectible
Current $82,000 1%
0-30 $29,500 5%
31-60 $ 7,960 10%
61-90 $ 4,220 25%
Over 90 $ 3,900 50%
Total $127,580
What will Domino record as Uncollectible Accounts Expense for 2016?

a. $6,096
b. $2,296
c. $5,116
d. $2,820
Business
1 answer:
olga_2 [115]3 years ago
3 0

Answer:

C.$5,116

Explanation:

Doubtful Accounts Closing Balance can be worked out as follows

(82,000*1%+29,500*5%+7,960*10%+4,220*25%+3,900*50%)=$6,096

Allowance for doubtful Accounts-Opening  A  $3,800

Allowance for doubtful Accounts-Closing   B    $6,096

For the year Expense  C=  (B-A)                                     $2,296

Written of Amount of A/R   D                                        $2,820    

Total  Uncollectible Accounts Expense=C+D              $,5,116

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goldenfox [79]

Answer: The appropriate entry for the note payable as at 31 December is $758,300.

Explanation: The interest expense on the note is calculated as: $1,000,000 *9/12 *3/12 months = $22,500. The amount paid for the first of the quarterly payment was $264,200. Therefore, note principal repayment can be derived by subtracting the interes accrued from the actual payment, that is, $264,200 minus $22,500 = $241,700. To get the principal note balance, you would subtract $241,700 from $1,000,000, leaving a balance of $758,300.

The appropriate adjusting entries would be:

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8 0
3 years ago
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n200080 [17]

Answer:

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Explanation:

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Budweiser is been advertised as the king of beers in america. this symbol has demonstrated its marketing strategy at identifying the peoples needs and thereby creating a value for it customers through its brand.

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Answer:

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I hope my answer helps you

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