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
Art [367]
3 years ago
8

In 2017 Wilkinson Company had net credit sales of $2250000. On January 1, 2017, Allowance for Doubtful Accounts had a credit bal

ance of $36000. During 2017, $90000 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 $600000, what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2017
Business
1 answer:
mamaluj [8]3 years ago
4 0

Answer:

$114,000

Explanation:

Given that,

Net credit sales = $2,250,000

Opening allowance for Doubtful Accounts = $36,000

Uncollectible accounts receivable written off = $90,000

Firstly, we need to find the excess amount to be adjusted to allowance for Doubtful Accounts. It is calculated as follows:

= Uncollectible accounts receivable written off  - Opening allowance for Doubtful Accounts

= $90,000 - $36,000

= $54,000

Allowance amount:

= 10% of the balance in receivables

= 0.1 × $600,000

= $60,000

Therefore, the required adjustment to the Allowance for Doubtful Accounts at December 31, 2017 is determined by summing up the excess amount and  allowance amount.

= Excess amount to be adjusted to allowance for Doubtful Accounts + Allowance amount

= $54,000 + $60,000

= $114,000

You might be interested in
During a contractionary phase of the business cycle, which of the following most likely occurs?
Zielflug [23.3K]
more tax revenues are remitted
6 0
3 years ago
Read 2 more answers
Producers believe the economy is headed for a recession, so they reduce their purchases of machinery and equipment.
Firlakuza [10]

Answer:

A - The Short Run Aggregate Supply curve shifts to the right. 

Explanation:

The Short Run Aggregate Supply curve plots aggreagrate price against aggreagrate quantity.

If producers believe a recession is imminent and they reduce the amount of machinery purchased, the quantity supplied would reduce shifting the Short Run Aggregate Supply curve to the left.

I hope I was able to help you.

7 0
3 years ago
ABC Manufacturing has total fixed costs of $460,000. A unit of product sells for $20 and variable costs per unit are $11. Prepar
labwork [276]

Answer:

Net Income (Loss) = $440,000

Explanation:

Total Fixed Cost = $460000

Total Variable Cost =  $11 * 100,000 unit =  $1100000

Total Revenue = $20 * 100,ooo unit = $2000000

Contribution Margin =  TR- TVC = ($200,000 - $1,100,000)  = -$900,000

Net Income = Contribution margin - Total Fixed cost

Net Income (Loss) = $900,000 - $460,000

= $440,000

3 0
3 years ago
Atlanta​, ​Inc., planned and actually manufactured 180,000 units of its single product in 2017​, its first year of operation. Va
steposvetlana [31]

Answer:

Net operating income= 1,080,000

Explanation:

Giving the following information:

Units produced= 180,000

Variable manufacturing cost was $ 17 per unit produced.

The variable operating​ (nonmanufacturing) cost was $ 10 per unit sold.

Planned and actual fixed manufacturing costs were $ 900,000. Planned and actual fixed operating​ (nonmanufacturing) costs totaled $ 360,000.

Atlanta sold 120, 000 units of a product at $ 44 per unit.

The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.

Unitary fixed overhead= 900,000/180,000= $5

Unitary production cost= 17 + 5= 22

Sales= 120,000*44= 5,280,000

COGS= 22*120,000= (2,640,000)

Gross profit= 2,640,000

The variable operating​ ocsts=  120,000*10= (1,200,000)

Fixed operating​ costs= (360,000)

Giving the following information:

Units produced= 180,000

Variable manufacturing cost was $ 17 per unit produced.

The variable operating​ (nonmanufacturing) cost was $ 10 per unit sold.

Planned and actual fixed manufacturing costs were $ 900,000. Planned and actual fixed operating​ (nonmanufacturing) costs totaled $ 360,000.

Atlanta sold 120, 000 units of a product at $ 44 per unit.

The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.

Unitary fixed overhead= 900,000/180,000= $5

Unitary production cost= 17 + 5= 22

Sales= 120,000*44= 5,280,000

COGS= 22*120,000= (2,640,000)

Gross profit= 2,640,000

The variable operating​ ocsts=  120,000*10= (1,200,000)

Fixed operating​ costs= (360,000)

Net operating income= 1,080,000

5 0
2 years ago
How does the use of credit influence businesses and the economy?
Anarel [89]
A credit company will look at your history with credit and either accept you or deny you based on your credit score

i hope this helps..;)


5 0
3 years ago
Read 2 more answers
Other questions:
  • Which type of payment has the most consistent earnings?
    10·2 answers
  • According to the business week article, "how to get a life and do your job" the most important aspect when pursuing a career in
    8·1 answer
  • Your boss gives you a very large project to complete. She will allow you to pick the colleagues you want to work with. Knowing t
    5·1 answer
  • Monique has a balance of $5440 on a credit card with an apr of 17.7%. paying off her balance in which of these lengths of time w
    7·2 answers
  • When a company declares a stock dividend, the declaration will
    10·1 answer
  • The embargo created an artificial drop in the supply of oil. how would a natural shortage differ from an embargo situation
    11·1 answer
  • You asked two of your friends to give you their opinions of a business proposal you have written. Now you have received two sepa
    11·1 answer
  • Why has the use of teams in the workplace increase so dramatically
    8·2 answers
  • Assume that laws have been passed that require the federal government to run a balanced budget. During a recession, the governme
    11·1 answer
  • Favaz began business at the start of this year and had the following costs: variable manufacturing cost per unit, $9; fixed manu
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!