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3 years ago

During 2004, ABC Company had $750,000 of net credit sales. Accounts Receivable had a December 31, 2004, balance of $250,000.

Business

1 answer:

eimsori [14]3 years ago

8 0

Answer:

c. $24,500

Explanation:

The allowance for doubtful accounts is a contra-asset account that records the amount of receivables expected to be uncollectiblea, makes a reduction of the total amount of accounts receivable appearing on a company’s balance sheet. There are two way to estimate uncollectible accounts: the percentage of sales method and the accounts receivable aging method.

ABC Company uses the percentage of sales method - application a flat percentage to the total amount of net credit sales for the period.

Estimated uncollectible = 3% x $750,000 = $22,500

The company establishes an allowance for doubtful accounts for $22,500 while simultaneously reporting $22,500 in bad debt expense.

Before adjusting on December 31, 2004, the Allowance for Doubtful Accounts had a credit balance of $2,000.

The balance in the allowance for doubtful accounts after adjustment is $22,500 + $2,000 = $24,500

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Answer:

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Yanka [14]

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3 years ago

f there are two factors used in producing a good, the least-cost rule specifies that costs have been minimized when Group of ans

solniwko [45]

Answer:

Explanation:

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4 years ago

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Alina [70]

Thank you for posting your question here at brainly. I hope the answer will help you. Feel free to ask more questions.
Among the choices the one that has
potential benefit of inflation is More business profits

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4 years ago

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