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suter [353]
3 years ago
8

Johnson Company uses the allowance method to account for uncollectible accounts receivable. Bad debt expense is established as a

percentage of credit sales. For 2013, net credit sales totaled $4,500,000, and the estimated bad debt percentage is 1.5%. The allowance for uncollectible accounts had a credit balance of $42,000 at the beginning of 2013 and $40,000, after adjusting entries, at the end of 2013.
Required:
1. What is bad debt expense for 2013?
2. Determine the amount of accounts receivable written off during 2013.
3. If the company uses the direct write-off method, what would bad debt expense be for 2013?
Business
1 answer:
MArishka [77]3 years ago
4 0

Answer:

1. The Bad debt expense for 2013 is $67,500

2. The amount of accounts receivable written off during 2013 is $69,500

3. If the company uses the direct write-off method, the bad debt expense for 2013 would be $69,500

Explanation:

1.  In order toCalculate the bad debt expense for 2013 we would have to make the following calculation:

Bad debt expense=1.5% of Net Credit Sales

=1.5%×$4,500,000

=$67,500

The Bad debt expense for 2013 is $67,500

2. In order to Determine the amount of accounts receivable written off during 2013 we would have to make the following calculation:

amount of accounts receivable written off=$42,000+$67,500-$40,000

amount of accounts receivable written off=$69,500

The amount of accounts receivable written off during 2013 is $69,500

3. Using direct write off method, the bad debt expense is recognized only when the actual bad debt is incurred. The actual bad expense would be the amount of accounts receivable written off during the year. Accounts receivable written off during the year would be same in both the methods.

Thus, the bad debt expense for the year 2013 would be $69,500.

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neonofarm [45]

Answer:

In some instances ,BPM will lead to a paradigm shift that transforms the nature of the business itself.it is false.

Explanation: BPM means business process management. Paradigm shift means a drastic change.A massive change in standards ,thinking patterns and values.

BPM brings changes in business .It is an approach to execute and control various processes to achieve the results according to the goals of the organisation.BPM do bring changes in business but it does not lead to a paradigm shift that transforms the nature of business.

4 0
3 years ago
A $200 petty cash fund has cash of $20 and receipts of $177. The journal entry to replenish the account would include a credit t
nalin [4]

Answer:

a. Cash for $180

Explanation:

The receipts from the petty cash fund indicate that the owner of the box made purchases adding up to $177. Therefore that money is no longer part of the fund. Since the fund holds $200 and currently only has $20 then to replenish the account the journal entry would need to include a credit to cash for $180 ... ($200-$20=$180)

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

6 0
3 years ago
WesternBioLabs Inc. is in the process of laying off 10% of its shipping and receiving employees. At the same time, it is hiring
igomit [66]

Answer:

A. Churning

Explanation:

Employee Churning is also known as employee turn-over which is an act of laying off employees while recruiting new ones. It is a measure always taken to conserve a company's limited resources. The turnover rate is given as the percentage of employees being laid off or leaving workers over a period of time. There are a lot of factors contributing to churning such as downsizing through attrition either due to recession or scarcity of company's resources.

5 0
3 years ago
6. Many supermarkets carry plain packages that only identify the name of the product that is inside. For example, a label may re
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Answer:

generic goods.

Explanation:

Generic goods -

It refers to the type of packaging , where only the type of product present inside the packet is written , rather than specifying the name of the brand , is referred to as generic goods .

For example ,

Mentioning the package with rice , cola , beans etc. , is the example of generic food .

Hence , from the given scenario of the question ,

The correct answer is generic goods .

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3 years ago
On October 1, Black Company receives a 6% interest bearing note from Reese Company to settle a $20,000 account receivable. The n
Ivanshal [37]

Answer:

B. $300

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The interest revenue is computed below:

= Principal × rate of interest × number of months ÷ (total number of months in a year)  

= $20,000 × 6% × (3 months ÷ 12 months)

= $300

The 6 months is calculated from October 1 to December 31

Simply we use the simple interest formula by considering the principal amount, rate of interest and time period so that the correct revenue can be computed

7 0
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