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never [62]
3 years ago
8

An aging of Bicycle Company's accounts receivable indicates that $20,000 is estimated to be uncollectible. If Allowance for Doub

tful Accounts has a $3,000 credit balance, the adjustment to record bad debts for the period will require a:
Business
1 answer:
V125BC [204]3 years ago
4 0

Answer:

The adjustment to record bad debts for the period will be:

Debit Bad debt expense ($20,000 - $3,000)                    $17,000

Credit Allowance for doubtful accounts                            $17,000

<em>(Bad debt expense required)</em>

Explanation:

Bicylce Company adopts the aging of accounts receivable method. The aging of accounts receivable is a criterion for apportioning the balance in the accounts receivable into different buckets (aging), for example: Not due, 1 - 30 days, 30 - 60 days, over 60 days, based on historical information and assigning a credit loss percentage to each bucket.

Since the Allowance for Doubtful Accounts has a $3,000 credit, to calculate the required bad debt expense, we need to back out this amount from the amount that is deemed uncollectible, that is $20,000 - $3,000 = $17,000.

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True or False: Banks are required to make electronically deposited funds available on the same day of the deposit
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Banks are required to make electronically deposited funds available on the same day of the deposit. False.

Banks are not required to make same day deposits available. The amount deposited and the bank all have different rules for for when they need to have funds available. Since each bank and type of account decide whether or not the funds need to be available and for how much, this varies from bank to bank.

4 0
3 years ago
Read 2 more answers
Cullumber Company had a 40 percent tax rate. Given the following pre-tax amounts, what would be the income tax expense reported
Nataliya [291]

Answer:

$101,520

Explanation:

Income statement will be made as follows:

                                                   $

Sales Revenue                     1100000

Less: COGS                          (617000)

Gross Profit                            483000

Less: Salaries & Wages         (80400)

Less: Depreciation exp.         (119000)

Less: Utilities exp.                   (10600)

Less: Interest expense            (19200)

Earning before tax                  253800

<u><em>Less:</em></u><u><em> </em></u><u><em>Tax(40%)</em></u><u><em>                          </em></u><u><em>(101520)</em></u>

<u><em></em></u>

Hope this helps.

Good luck buddy.

3 0
3 years ago
On hot summer days, electricity-generating capacity is sometimes stretched to the limit. At these times, electric companies may
anygoal [31]

Answer:

b. excludable and rival in consumption

Explanation:

For categorizing the goods as private or public, the two terms we need to understand i.e.  rivalry and excludability

The rivalry refers only one person could consume it no other has the right to consume the same thing

While on the other hand, the excludable arise when you stop someone from using a particular thing

So here in the given case, the option b is most appropriate as it is fit to the scenario

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3 years ago
State the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cash fl
Ivanshal [37]

Answer:

    Effect of Transaction on Cash Flows

     Effects                     Amount

1.   Cash Payment         $239,000

2.  Cash Receipt           $252,000 (12000*$21)

3.  Cash Receipt           $91,400

4.  Cash Payment         $491,000

5.  Cash Payment         $86,000

6.  Cash Receipt           $188,100 (190,000*0.99)

7.  Cash Payment         $353,400 (6,200*$57)

8.  Cash Payment         $36,100 [1.90*(23,000-4,000)]

5 0
3 years ago
A business owner makes 60 items by hand in 45 hours. She could have earned $35 an hour working for someone else. Her total expli
Nezavi [6.7K]
The Answer Is : $-720
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