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Aleksandr [31]
3 years ago
6

Allegheny Company ended Year 1 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $54,000 and $2,400, r

espectively. During Year 2, Allegheny wrote off $4,200 of Uncollectible Accounts. After aging its receivables, Allegheny estimates that the ending Allowance for Doubtful Accounts balance should be $4,000. What will Allegheny report as Uncollectible Accounts Expense on its Year 2 income statement
Business
2 answers:
MakcuM [25]3 years ago
7 0

Answer:

Allegheny will report $5,800 as Uncollectible Accounts Expense on its Year 2 income statement.

Explanation:

Bad debt Expense will be calculated using the percentage of debt loss. The expense will be calculated using the account receivable balance.

Allowance for Doubtful Accounts is estimated as $4,000 for year 2

Before Adjustment year 2

Allowance for Doubtful Accounts Balance = $2,400 credit - $4,200 = $1,800 debit

Account receivable balance = $54,000 - $4,200 = $49,800

As Allowance for Doubtful Accounts already have debit balance of $1,800, we need to adjust the remainder to make the closing balance of Allowance for Doubtful Accounts $4,000 at the year end.

Adjustment Value = $4,000 + $1,800 = $5,800

tamaranim1 [39]3 years ago
5 0

Answer:

<u><em>Uncollectible Accounts Expense for year 2:</em></u> 5,800

Explanation:

                         Allowance

                    <u>DEBIT         CREDIT</u>

BEG                                    2,400

Write-offf       4,200

Adjusmtent <u>                       </u><u>XXX </u><u>    </u>

Ending                              4,000

The aging method determined the ending balance we must solve for the adjustment made against uncollectible account expense:

beginning - write-off + adjustment = ending

2,400 - 4,200 + X = 4,000

X = 4,000 + 4,200 - 2,400 = 5,800

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4 0
3 years ago
A manufacturer shipped units of a certain product to two locations. The equation above shows the total shipping cost TTT, in dol
andriy [413]

Answer: 2,200 units.

Explanation:

The complete exercise is:

T = 5c + 12 f

A manufacturer shipped units of a certain product to two locations. The equation above shows the total shipping cost T, in dollars, for shipping c units to the closer location and shipping f units to the farther location. If the total shipping cost was $47,000 and 3,000 units were shipped to the farther location, how many units were shipped to the closer location?

Given the following equation:

T = 5c + 12 f

You know that "T" is the total shipping cost (in dollars), "c" is the number of units shipped to the closer location and "f" is the number of units shipped to the farther location.

Based on the information given in the exercise, you can identify that, in this case:

T=47,000\\\\f=3,000

Then, knowing those values, you need to substitute them into the given equation:

47,000 = 5c + 12(3,000)

And finally, you must solve for "c" in order to calculate the number of units that  were shipped to the closer location.

You get that this is:

47,000 = 5c + 12(3,000)\\\\47,000-36,000 = 5c\\\\11,000=5c\\\\\frac{11,000}{5}\\\\c=2,200

3 0
3 years ago
Read 2 more answers
A manufacturing company has a beginning finished goods inventory of $15,400, raw material purchases of $18,800, cost of goods ma
cupoosta [38]

Answer:

$30,900

Explanation:

The beginning finished goods is $15,400

Raw materials purchased is $18,800

The cost of goods manufactured is $34,100

Ending finished goods is $18,600

Therefore the cost of gods can be calculated as follows

= 15,400+34,100-18,600

= 49,500-18,600

= 30,900

Hence the cost of goods sold by the company is $30,900

8 0
3 years ago
During the past year, a company reported net income of $230,000. Depreciation expense was $22,000. In December the company recei
tamaranim1 [39]

Answer: $259000

Explanation:

Based on the information provided in the question, the amount of cash provided by operating activities that should appear on a statement of cash flows would be:

Net income = $230,000

Add: Depreciation expense = $22,000

Add: Rent = $7000

Total = $259,000

8 0
3 years ago
Weaver Company's predetermined overhead rate is $21.00 per direct labor-hour and its direct labor wage rate is $15.00 per hour.
Misha Larkins [42]

Answer:

1. $590

2. $9.83

Explanation:

1.

Total Number of Direct Labor Hours:

= Total Labor Cost ÷ Labor Rate Per Hour

= 150 ÷ 15

= 10 Hours

Total Overheads:

= Total Number of Direct Labor Hours*Predetermined Overhead Rate

= 10 × 21

= 210

Total Manufacturing Cost = 230 + 150 + 210

                                           = $590

2.

Average Cost:

= Total Manufacturing Cost ÷ Number of Units

= 590 ÷ 60

= $9.83

3 0
3 years ago
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