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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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In addition to other costs, Grosha Telephone Company planned to incur $600,000 of fixed manufacturing overhead in making 500,000
Whitepunk [10]

Answer:

Please find the detailed answer as follows:

Explanation:

a) Predetermined overhead rate = Estimated manufacturing overhead cost   / Estimated total units in the allocation based

Predetermined overhead rate = 600,000 / 500,000 = 1.2 perunit

b) Total fixed cost spending variance = Actual fixed overhead cost - Estimated overhead cost

                                                         = 599,400 - 600,000

                                                         = 600 (F) Favourable

c) Total fixed cost volume variance = Actual fixed overheads - Estimated fixed overheads

  Actual fixed overheads = Estimated fixed overhead rate * Actual units produced

                                        = 1.2 * 508,000 = $609,600

Total fixed cost volume variance =$ 609,600 - $600,000 = $9600 (F) Favourable

4 0
3 years ago
The term monopoly refer most specifically to
Alisiya [41]
<span>the exclusive possession or control of the supply or trade in a commodity or service.</span>
8 0
3 years ago
The management of Leyton Electronics Inc. always favors market orientation over the other marketing management philosophies. In
vredina [299]

Answer:

C.

Explanation:

Market Orientation refers to a business approach that focuses on what the customers want and need and then creating the products to satisfy them. Therefore based on the information provided in this question it can be said that the likeliest answer is that Leyton Electronics Inc. satisfies its customers' wants and needs legally and responsibly.

6 0
3 years ago
Economic expansion throughout the rest of the world raises the world interest rate. Use the Mundell–Fleming model to illustrate
Kobotan [32]

Answer: The answer is provided below

Explanation:

The fiscal expansion in the rest of the world will lead to an increase in the world interest rate and a decrease in the domestic investment.

As a result, a rise in the world interest rate will lead to an increase in the national income and also lower the nominal exchange rate.

The diagram has been attached.

5 0
2 years ago
Market failures : a) are only a concern when they result in prices that are too high. b) apply exclusively to situations where p
ZanzabumX [31]

Answer:

d) result in overproduction or underproduction of a good.

Explanation:

Market failure occurs when market forces fails to allocate goods and services efficiently.

The government usually intervenes to correct market failure.

Externalities usually lead to market failure.

Positive externality is when the benefits of economic activities to third parties exceeds its cost. Research and development usually yield postive externality.

Goods that yield postive externality are usually underproduced. Government can intervene by giving subsidies and grants which encourages production.

A negative externality is when the cost of economic activities to third parties exceeds the benefit. Pollution is an example of negative externality. Goods that yield negative externality are usually overproduced. Government can intervene by taxing companies producing negative externality. This would increase the cost of production and discourage production.

I hope my answer helps you

4 0
2 years ago
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