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ArbitrLikvidat [17]
3 years ago
14

In 2022, Company A had net credit sales of $2,250,000. On January 1, 2022, Allowance for Doubtful Accounts had a credit balance

of $54,000. During 2022, $90,000 of uncollectible accounts receivable were written off. Past experience indicates that the allowance should be 10% of the balance in receivables (percentage of receivables basis). If the accounts receivable balance at December 31 was $600,000, what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2022?
Business
1 answer:
Zielflug [23.3K]3 years ago
5 0

Answer:

A credit entry of $96,000

Explanation:

When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.  

To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.

Given that Past experience indicates that the allowance should be 10% of the balance in receivables

Allowance = 10% * $600,000

= $60,000

Amount written off of $90,000 would have made the  balance in  the allowance for doubtful debts to

= $90,000 - $54,000

= $36,000 (Debit)

However, the balance in the account at the end of the year should amount to $60,000 hence the adjustments required

= $60,000 + $36,000

= $96,000 (credit)

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Find the difference in height between the top of a hill 973 feet high and a crack caused by an earthquake 79 feet below sea leve
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The difference in height between the hill 973 feet above sea level and the crack 79 feet below sea level is:

 

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4 0
3 years ago
Kenseth Corp. has the following beginning-of-the-year present values for its projected benefit obligation and market-related val
levacccp [35]

Answer:

10%Corridor

2011 $0

2012 $250,000

2013 $295,000

2014 $360,000

Accumulated

2011 $0

2012 $280,000

2013 $367,000

2014 $372,000

Minimum Amortization of Loss

2011 $0

2012 $3,000

2013 $6,000

2014 $1,000

Explanation:

Calculation to determine the net gain or loss amortized and charged to pension expense under the corridor approach

Year, Projected Benefit Obligation (a) , Plan Assets, 10%Corridor, Accumulated d OCI (G/L) (a), Minimum Amortization of Loss

2011 $2,000,000 $1,900,000 $200,000 $ 0 $0

2012 $2,400,000 $2,500,000 $250,000 $280,000 $3,000(b)

2013 $2,950,000 $2,600,000 $295,000 $367,000(c) $6,000(d)

2014 $3,600,000 $3,000,000 $360,000 372,000(e) $1,000(f)

Calculation for 10%Corridor

2011 $0

2012 10%*$2,500,000 =$250,000

2013 10%*$2,950,000 =$295,000

2014 10%*$3,600,000 =$360,000

Calculation for Accumulated Depreciation and Minimum Amortization of Loss

a. As at the beginning of the year

b. ($280,000 – $250,000) ÷ 10 years = $3,000

c. $280,000 – $3,000 + $90,000 = $367,000

d. ($367,000 – $295,000) ÷ 12 years = $6,000

e. $367,000 – $6,000 + $11,000 = $372,000

f ($372,000 – $360,000) ÷ 12 years = $1,000

Therefore the net gain or loss amortized and charged to pension expense under the corridor approach are :

10%Corridor

2011 $0

2012 $250,000

2013 $295,000

2014 $360,000

Accumulated Depreciation

2011 $0

2012 $280,000

2013 $367,000

2014 $372,000

Minimum Amortization of Loss

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2012 $3,000

2013 $6,000

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2 years ago
According to the U.S. Census Bureau, 85% of Americans have health insurance. Which generalization might BEST account for why app
Anna007 [38]
I think the most appropriate answer would be A.



I hope it helped you!
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2 years ago
Read 2 more answers
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<h3>Answer Options:</h3>

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B. Calculate cost of goods sold, selling and administrative expenses, and net income as a percentage of net sales for James Jeans and the two largest competitors; draw conclusions from these results and highlight similarities and differences.

C. Identify the structure of the sales and marketing team of each company, gather information about customer product reviews, and review product warranty claims to understand the comparative performance.

D. Analyze the size of each company's balance sheet and income statement accounts by calculating how much larger or smaller the competitors are compared to James Jeans Co. summarize observations about what might be the reasons for these size differences.

Thus, the vertical analysis approach that will provide the most effective performance evaluation of James Jeans Co. and its two largest competitors is <u>Option B.</u>

<em>"Calculate the cost of goods sold, selling and administrative expenses, and net income as a percentage of net sales for James Jeans and the two largest competitors; draw conclusions from these results and highlight similarities and differences."</em>

<em />

Learn more about vertical analysis at brainly.com/question/15694796

#SPJ1

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2 years ago
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