1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
marin [14]
3 years ago
7

In the balance sheet at the end of its first year of operations, Dinty Inc. reported an allowance for uncollectible accounts of

$82,000. During the year, Dinty wrote off $31,800 of accounts receivable it had attempted to collect and failed. Credit sales for the year were $2,340,000, and cash collections from credit customers totaled $1,910,000. What bad debt expense would Dinty report in its first-year income statement? 1.$82,000.2. $50,200. 3.$113,800.
Business
1 answer:
Vlada [557]3 years ago
7 0

Answer:

The correct option is 2. $50,200

Explanation:

Please see below the required journals for the transactions that occurred:

Debit Allowance for doubtful accounts             $31,800

Credit Accounts receivable                                $31,800

(<em>To record write-off of accounts receivable)</em>

Debit Accounts receivable                           $2,340,000

Credit Sales revenue                                    $2,340,000

<em>(To record credit sales during the year)</em>

Debit Cash                                                      $1,910,000

Credit Accounts receivable                           $1,910,000

<em>(To record collection on account)</em>

  • The effect of the above journals on allowance for doubtful account is a reduction. Since Dinty already assessed its allowance for doubtful account to be $82,000, bad debt expense required will be $50,200 ($82,000 - $31,800).
  • The balance in accounts receivable will be $2,340,000 - $1,910,000 - $31,800 = $398,200.
You might be interested in
Carol and leslie enter into a contract stating that carol will pay leslie $650 per month for the next 20 years. carol will live
igomit [66]

They are in Installment Sales Contract.

<h3>What is an Installment Sales contract?</h3>

Any contract or agreement, including a contract for deed, bond for deed, or any other sale or legal device whereby a seller agrees to sell and the buyer agrees to buy residential real estate, in which the consideration for the sale is payable in installments for a period of at least one year after the date of sale, and the seller retains an interest or security for the purchase price or otherwise in the property, is referred to as an "installment sales contract" or simply as "contract."

Revenue recognition using the installment sales technique is postponed until the sale's cash is received. Because revenue is not immediately recognized at the moment of sale, the installment sales method is a conservative way to recognize revenue.

Only when partial ownership is transferred at the time of sale is the installment sales technique used. The technique is also applied when there is some doubt regarding the amount that will be collected (therefore, it would be inappropriate to recognize all revenue at the time of sale).

Therefore, Carol and Leslie are in Installment Sales Contract.

For more information on Installment Sales Contract, refer to the given link:

brainly.com/question/24178410

#SPJ4

8 0
2 years ago
Suppose Jim worked 62 hours during this payroll period and is paid $14.00 per hour. Assume FICA is 6.2%, Medicare is 1.45% and w
lara31 [8.8K]

Answer:

1. $714.798

2. $66.402

3. $141.484

Explanation:

1. Gross pay = 62 hours worked x $14.00 per hour

= $868

Net paycheck = Gross pay - Tax

= 868 - [(868) x (6.2%+1.45%+10%)

= $868 - $153.202

= $714.798

2. Employer's payroll tax expense = (6.2%+1.45%) x 868

= $66.402

3. Jim's employer's total payroll tax liability for the period.

868*6.2% (FICA taxes - Employee) + 868*6.2% (FICA taxes - Employer's share) + 868*1.45% (Medicare taxes - Employee) + 868*1.45% (Medicare taxes - Employer's share) + 868*10% (Withholding tax).

= 53.816 + 53.816 + 12.586 + 12.586 + 8.68

Total = $141.484

5 0
3 years ago
Please help!!
KonstantinChe [14]

Incomplete question. Answered from a general perspective.

<u>Explanation:</u>

The following two circumstances may warrant a professional response to an online post:

  • when the comment constitutes misleading/false information about the company.
  • the comment indicates a sincerely confused customer wanting to solve an issue or get answers to their query.

Guidelines:

  • Maintain formality in reply
  • Be polite in reply
  • Express appreciation for the feedback.
  • Apologize where necessary.
  • Reinstill trust.
5 0
3 years ago
FAS 13 sets forth four criteria for determining whether or not a lease must be classified as a capital lease. How many of these
storchak [24]

Answer:

xszxszxs

Explanation:

xsxzxszxsz

4 0
3 years ago
A professor decides to save paper by posting her syllabus on the university's web-based course application program instead of pr
LenaWriter [7]

Answer:

<u>Feedback</u>

Explanation:

In this question there is an example of feedback. This communication model occurred because after receiving the e-mail, the students asked the teacher about the message received via e-mail.

When a message is sent to a recipient and answered, feedback occurs. This answer is important for clear communication and for measuring the effectiveness of a message.

4 0
3 years ago
Other questions:
  • Which of the following is an advantage of using the Clipboard task pane?
    12·2 answers
  • Personal possession of currency is prohibited in U.S. prisons, although, in practice, prisoners still exchange goods and service
    14·1 answer
  • Leighton has spent the last two hours going over customer surveys to see how well her company is achieving its goal of improving
    15·2 answers
  • The fair value of net identifiable assets of a reporting unit of Y Company is $270,000. The carrying value of the reporting unit
    11·1 answer
  • Calculate how much each of the following items is worth in terms of today's dollars using 180 as the price index for today.
    12·1 answer
  • On her way to work, Emma reaches an intersection without signs or signals. After stopping completely, what should she do?
    9·1 answer
  • Which one of the following is an example of the circular flow model and shows the interdependence of households and firms? a. Th
    10·1 answer
  • Suppose Stan owns a piece of property with a large lake. Initially, Stan and his family were the only people who swam in the lak
    8·1 answer
  • A relevant cost ______. Multiple select question. differs between alternatives is always an opportunity cost pertains to the fut
    5·1 answer
  • Which of the following is an example of a consumer service?
    9·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!