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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

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The concept of ________ suggests that when a company has built significant value into its product offerings, trying to increase
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The answer is: Red Carpet should try to focus on niche market segments.

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3 years ago
A Japanese insurance company purchases U.S. government securities. From the perspective of the United States, the balance of tra
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Answer:

a. not change; improve

Explanation:

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3 years ago
Consider the following marginal cost function. a. Find the additional cost incurred in dollars when production is increased from
weqwewe [10]

Answer:   (a) $197,500

(b) $ 189,500

Explanation:

Given : The marginal cost function : C′​(x)=4000−0.4x

To find the cost function, we need to integrate the above function with respect to x.

Now, the additional cost incurred in dollars when production is increased from 100 units to 150 units will be:-

\int^{150}_{100}\ C'(x)\ dx\\\\=\int^{150}_{100} (4000-0.4x)\ dx\\\\=[4000x-\dfrac{0.4x^2}{2}]^{150}_{100}\\\\=[4000(150)-\dfrac{0.4(150)^2}{2}-4000(100)+\dfrac{0.4(100)^2}{2}]\\\\=[600000-4500-400000+2000]\\\\=197500

Hence, the additional cost incurred in dollars when production is increased from 100 units to 150 units= $197,500

Similarly,  the additional cost incurred in dollars when production is increased from 500 units to 550 units :-

\int^{550}_{500}\ C'(x)\ dx\\\\=\int^{550}_{500} (4000-0.4x)\ dx\\\\=[4000x-\dfrac{0.4x^2}{2}]^{550}_{500}\\\\=[4000(550)-\dfrac{0.4(550)^2}{2}-4000(500)+\dfrac{0.4(500)^2}{2}]\\\\=[2200000-60500-2000000+50000]\\\\=189,500

Hence, the additional cost incurred in dollars when production is increased from 500 units to 550 units = $ 189,500

4 0
3 years ago
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