Using the allowance method, is bad debt expense recognized in the period in which sales related to the uncollectible account are made.
One of the most typical types of bad debt is credit card debt. Lenders issue credit cards, which let you make purchases on credit. These credit cards frequently have exorbitant interest rates that can soon become out of control.
Bad debt costs are typically listed on the income statement as a sales and general administrative expenditure. Accounts receivable on the balance sheet are reduced when bad debts are recognized, but firms still have the right to collect money if the situation changes.
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Answer:
Annual depreciation (year 1)= $1,400
Explanation:
Giving the following information:
Buying price= $36,000.
Useful units= 300,000 units of product.
Salvage value= $6,000
During its first year, the machine produces 14,000 units of product.
To calculate the depreciation expense for the first year under the units of production method, we need to use the following formula:
Annual depreciation= [(original cost - salvage value)/useful life of production in units]*units produced
Annual depreciation= [(36,000 - 6,000)/300,000]*14,000
Annual depreciation= 0.1*14,000= $1,400
Answer:
Days sales in payable = 68.74 days(Approx)
Explanation:
Given:
Cost of goods sold = $44,621
Accounts payable = $8,403
Days sales in payable = ?
Computation of Days sales in payable :
Days sales in payable = ($8,403 / $44,621) × 365 days
Days sales in payable = 0.188319401 × 365 days
Days sales in payable = 68.7365814
Days sales in payable = 68.74 days(Approx)
Answer:
The Acquisition Program Baseline (APB) is developed by the Program Manager (PM) before the initiation of a program for all Acquisition Category (ACAT) programs and depicts the current condition of a program.
Explanation:
