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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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Hammond Lumber has just changed from prefabricating 8 gazebos to 10 gazebos (units). Their total costs changed from $9,500 to $1
AfilCa [17]

Answer:

MC = 750

Explanation:

Below is the given values:

Initial quantity = 8

Final quantity = 10

Initial total cost = $9500

Final total cost = $11000

Marginal cost = Change in total cost / Change in quantity

Change in total cost = 11000 - 9500 = 1500

Change in quantity = 10 - 8 = 2

Marginal cost = Change in total cost / Change in quantity

MC = 1500 / 2

MC = 750

3 0
3 years ago
Corporation M has $40,000 of current earnings and profits and $10,000 of accumulated earnings and profit. During the year Corpor
zzz [600]

Answer:

$40,000

Explanation:

Calculation to determine What amount of capital gain income will N recognize related to this distribution

Using this formula

N Capital gain income=N stock basis- M distribution

Let plug in the formula

N Capital gain income=$100,000-$60,000

N Capital gain income=$40,000

Therefore The amount of capital gain income that N will recognize related to this distribution is $40,000

6 0
3 years ago
Do u have a mil what would u do wit it<br> how would u invest
Sonja [21]

Answer:

I would save a quarter of it for university, I would pay off and debt then I would invest in shares and donate to charity. also buy a car.

Explanation:

this is a personal based question so it's what you would spend the mil on. this is what I would spend it on.

3 0
3 years ago
The following information is available from the accounting records of Manahan Co. for the year ended December 31, 2019: Net cash
diamong [38]

Answer:

See below

Explanation:

a. Operating income statement for the year ended December 31, 2019

Net sales $645,000

Less: Cost of goods sold ($367,650)

Gross profit $277,350

Less: Expenses

Selling, general, administrative expenses ($142,100)

Other selling expenses ($14,600)

Advertising expense ($47,600)

Operating income $73,050

b.

Operating income $73,050

Less:

Income tax expense ($25,568)

Income from continuing operations before taxes $47,482

Loss from discontinued operations, net of savings $38,133 ($14,400)

Net income $33,082

4 0
3 years ago
Cycle Wholesaling sold merchandise on account, with terms n/60, to Sarah’s Cycles on February 1 for $1,000 (cost of goods sold o
k0ka [10]

Answer:

Accounts Receivables 1000 debit

Sales Revenues  1000 credit

--to record sale--  

COGS  600 debit

Inventory  600 credit

--to record COGS of the previous sale--    

Sales Returns  155 debit

Accounts Receivables  155 credit

--to record returned goods--  

Inventory            155 debit

       COGS                     155 credit

--to record goods in good state returning to inventory--

Explanation:

The sale will be reocrded normally then, the return will have two impacts:

first it will decrease the amount of the receivables and make the net sames decrease therefore we will decrease net sales

Last, for the inventory as the godo are in good form and could be resale we record the reception of those good and reverse that portion of COGS sold

3 0
3 years ago
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