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
Marina86 [1]
3 years ago
11

Garla Company reports the following financial information before adjustments. Dr. Cr. Accounts Receivable $145,600 Allowance for

Doubtful Accounts $3,350 Sales Revenue (all on credit) 834,000 Sales Returns and Allowances 53,540
Prepare the journal entry to record bad debt expense assuming Carla Company estimates bad debts at (a) 4% of accounts receivable and (b) 4% of accounts receivable but Allowance for Doubtful Accounts had a $1,570 debit balance.
Business
1 answer:
Bond [772]3 years ago
8 0

Answer:

The following journal entries apply:

a) Debit Bad debt expense                                    $33,692.4  

   Credit Allowance for doubtful accounts           $33,692.4

b) Debit Bad debt expense                                    $38,612.4  

   Credit Allowance for doubtful accounts            $38,612.4

Explanation:

All the sales revenue are on credit to the tune of $834,000, however, there was sales return and allowance of $53,540, which has to be deducted from credit sales to arrive at the net credit sales of $780,460. This amount would be added to the accounts receivable of $145,600 to arrive at the total accounts receivable of $926,060.

a) 4% of $926,060 is $37,042.4. With credit balance of $3,350 in allowance for doubtful accounts, bad debt expense (addition) is $33,692.4  ($37,042.4 - $3,350).

b) 4% of $926,060 is $37,042.4 and there is a debit balance of $1,570 in allowance for doubtful accounts, bad debt expense (to reinstate allowance account to $37,042.4) is $38,612.4 ($37,042.4 + $1,570).

You might be interested in
The type of unemployment associated with recessions is called:
kherson [118]

Answer:

cyclical unemployment

5 0
3 years ago
Qué importancia tiene llevar contabilidad para las empresas en El Salvador? ayuda porfavorrr​
miv72 [106K]
La importancia de la contabilidad radica en que, sin ella, no sabrías cuánto dinero entra y sale de tu organización ni podrías planear para el crecimiento futuro
7 0
3 years ago
When the Fed buys​ $100 worth of bonds from a primary​ dealer, reserves in the banking system A. increase by more than​ $100. B.
ruslelena [56]

Answer:

The correct answer is D.

Explanation:

The fed buys $100 worth of bonds from a primary dealer. The fed will pay the dealer for these bonds. This will cause an increase in the total reserves by $100. The money supply will increase by more than $100. The extent of increase in the money supply depends on the required reserve ratio. This is an example of an expansionary monetary policy.

4 0
3 years ago
Suppose that the level of GDP increased by $100 billion in a private closed economy where the marginal propensity to consume is
____ [38]

Answer:

$50 billion

Explanation:

To find the change in aggregate expenditures, we need to find the change in consumption. For this, we will use the marginal propensity to consume formula:

MPC = ΔC/ΔY

Where:

MPC = Marginal propensity to consume

ΔC = Change in consumption

ΔY = Change in output (GDP)

We know that out MPC is 0.5, and our ΔY is $billion. We plug these amounts into the formula:

0.5 = ΔC / 100 billion

And we rearrange the equation to solve for ΔC

ΔC = $ 100 billion x 0.5

ΔC = $50 billion

So the change in consumption is $50 billion, which is also the change in aggregate expenditure.

3 0
3 years ago
Western Wear Clothing issues 1,600 shares of its $0.01 par value common stock to provide funds for further expansion. Assuming t
Kaylis [27]

Answer:

Journal Entry

Explanation:

The Journal Entry is shown below:-

Cash Dr, (1,600 shares × $13 per share) $ 20,800

          To Common Stock (1,600 shares × $ 0.01 par) $16

         To Additional Paid in Capital in excess of par-Common Stock $20,784

(Being Issuance of common stock is recorded)

Therefore for recording the issuance of common stock we debited cash and credited common stock and additional Paid in Capital in excess of par common stock

7 0
3 years ago
Other questions:
  • Carla Vista Co. issued $590,000, 10-year, 7% bonds at 101. Prepare the journal entry to record the sale of these bonds on Januar
    9·1 answer
  • Jake and janelle loved to prepare gourmet meals for friends and family. they started a business of preparing theme type dinners
    8·1 answer
  • How does the Small Business Administration (SBA) categorize some types of insurance needs?
    14·2 answers
  • Pecan Theatre Inc. owns and operates movie theaters throughout Florida and Georgia. Pecan Theatre has declared the following ann
    13·1 answer
  • Answer please help please
    15·1 answer
  • In which situations is a broker/seller NOT required to provide a written disclosure regarding the broker's license status?
    6·1 answer
  • When inventories go down in value, accountants adjust the value of the inventory that is recorded on the balance sheet. Sometime
    15·1 answer
  • Camping Out Co. manufactures down sleeping bags:
    15·1 answer
  • Hello can someone help me with this because i'm confused about it
    5·2 answers
  • To be considered an official record the document must be:
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!