Wellington Corp. has outstanding accounts receivable totaling $1.27 million as of December 31 and sales on credit during the yea
2 answers:
Answer:
$61,000 Cr.
Explanation:
There are two views to this answer:
First, where year end balance of allowance will be 1% of net credit sales.
Provided credit sales for the period = $6.4 million
Non-collectible amount = 1% of net credit sales.
Therefore at the year end balance for un-collectible allowance for doubtful debts shall be $6.4 million 1% = $64,000
Since balance is debit of $3,000
Entry shall be of $64,000 + $3,000 = $67,000 credit against bad debt expense account.
After year end adjustment entry of $67,000
Bad Debt Expense Account Dr. $67,000
To Allowance For Doubtful Debts $67,000
Balance of allowance for doubtful debts = $3,000 Dr + $67,000 Cr = $64,000 Cr.
Second view,
In this view we have the expense for the year to be $64,000 that is 1% of $6.4 million of sales.
Therefore, entry will be
Bad Debt Expense Account Dr. $64,000
To Allowance for doubtful debts A/c $64,000
Expense for current year recorded.
After this year end balance for allowance = $64,000 Cr - $3,000 Dr. = $61,000 Cr.
Since second view is more logical, it will be considered as the expense for the year shall be limited to 1% of sales = $64,000.
Thus, Final Answer = $61,000 Cr.
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Answer:
a. True
Explanation:
DOT stands for the Dictionary of Occupational Titles. It is the publication which was produced by the Department of Labor of the United States of America for the working people that helped the employers, the government officials, and the other workforce development professionals in order to define over different types of work from
to the late
s.
But now, due to the advancement in technologies and change in the nature of job of many works the previous publication was replaced by the new Occupational Information Network which suits with todays technology and development in the working conditions. It is shortly known as the O*NET.
Hence the answer is TRUE.