Shelli's Ski Super has sales of $670, net fixed assets of $210, total assets of $305, and current assets of $25. What is the tot
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<u>Given:</u>
Annual property tax = $1,140
Number of days = 91
<u>To find:</u>
Seller's credit for property tax
<u>Solution:</u>
The following is the calculation of the seller credit for property taxes,
On plugging-in the values we get,
Therefore, the seller's credit for property taxes is $288.
Answer and Explanation:
The Journal entry is shown below:-
a. Bad Debt Expense Dr, $36,800 ($40,000 – $3,200)
To Allowance for Doubtful Accounts $36,800
(Being the bad debt expense is recorded)
For recording this we debited the bad debt expense as it increased the expenses and at the same time it reduced the assets so the allowance for doubtful accounts is credited
b. Bad Debt Expense Dr, $40,730 ($40,000 + $730)
To Allowance for Doubtful Accounts $40,730
For recording this we debited the bad debt expense as it increased the expenses and at the same time it reduced the assets so the allowance for doubtful accounts is credited
