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Nat2105 [25]
3 years ago
9

On December 31, 2021, Coolwear Inc. had balances in Accounts Receivable and Allowance for Uncollectible Accounts of $44,000 and

$1,300, respectively. During 2022, Coolwear wrote off $775 in accounts receivable and determined that there should be an allowance for uncollectible accounts of $4,100 at December 31, 2022. Bad debt expense for 2022 would be:
Business
1 answer:
faust18 [17]3 years ago
3 0

Answer: $3,575

Explanation:

Opening balance for Allowance for Noncollectable Accounts for 2022 is closing balance for 2021 = $1,300.

Cool wear wrote off $775 during the year which would come out of the allowance;

= 1,300 - 775

= $525

An allowance of $4,100 was determined for the year which means that the Bad debt expense is the difference between the determined allowance and the current balance because this is the amount that the account had to be increased by to cater for the bad debt expense.

= 4,100 - 525

= $3,575

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Explanation:

that should help

5 0
3 years ago
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6 0
3 years ago
Santino bought a book for $23.54 the price of the book was $22. what was the sales tax rate
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Hi there! The answer is 7%

The price of the book is $ 22.
Santino bought it for $ 23.54.
Therefore, the amount of tax is $ 1.54

Now we can find the sales tax rate by using the following formula:
tax \: rate = \frac{tax}{price \: excluding \: tax} \times 100\%

Filling in gives:
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