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Lostsunrise [7]
3 years ago
12

The records of Bramble Company at the end of the current year shows Accounts Receivable $74,500; Credit Sales $786,220; and Sale

s Returns and Allowances $42,810. (a) If Bramble uses the direct write-off method to account for uncollectible accounts and Bramble determines that Matisse’s $922 balance is uncollectible, what will Bramble record as bad debt expense? Bad debt expense $enter bad debt expense in dollars (b) If Allowance for Doubtful Accounts has a balance of $1,116 and Bramble concludes bad debts are expected to be 9% of accounts receivable, what will Bramble record as bad debt expense? Bad debt expense $enter bad debt expense in dollars
Business
1 answer:
Llana [10]3 years ago
5 0

Answer:

  • (a) If Bramble uses the direct write-off method to account for uncollectible accounts and Bramble determines that Matisse’s $922 balance is uncollectible, what will Bramble record as bad debt expense?  

Dr Bad Debt Expense $ 922

Cr Accounts Receivable  $ 922

  • (b) If Allowance for Doubtful Accounts has a balance of $1,116 and Bramble concludes bad debts are expected to be 9% of accounts receivable, what will Bramble record as bad debt expense?  

Dr Bad Debt Expense $ 5,589

Cr Allowance for Uncollectible Accounts $ 5,589

Explanation:

The direct write-off method is to directly cancel bad debts at the time it was decided that the credit is bad, the total amount reported as bad debt expenses negatively affect the income statement and the accounts receivable are reduced by the same amount, less assets

Dr Bad Debt Expense $ 922

Cr Accounts Receivable  $ 922

The other way is to determine a percentage of the total amount of accounts receivable as bad debts, there are many ways to analyze accounts receivable and calculate the value of bad debts.

When the company has the percentage of uncollectible accounts, the required journal entry is Bad Expenses (debit) with Reserve for Bad Accounts (credit)

At the time of cancellation, since the expenses were recognized before, we only use the Allowance for Uncollectible Accounts (Debit)  with accounts receivable (credit), with this we are recognizing the bad credit of the company.

Dr Bad Debt Expense $ 5,589

Cr Allowance for Uncollectible Accounts $ 5,589

If the company applies the allowance method, it means that the account Allowance for Uncollectible Accounts must show as balance the % of accounts receivables as CREDIT.

Because the company has a credit balance in that account it's necessary to register an entry that complement the credit value and reflect A CREDIT estimated as % of account receivable., this case it's 9% of accounts receivable.

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Alexandra [31]

Our culture has become accustomed to debt mainly because the capitalist system in which we find ourselves favors the management of loans for the acquisition of goods and services.

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Learn more in brainly.com/question/12299831

8 0
2 years ago
Suppose that the government imposes a commodity tax on alcohol. Assuming that both alcohol demand and supply are relatively elas
belka [17]

Answer:

c. Alcohol consumption decreases, whereas the alcohol market price increases if the tax is placed on the sellers or decreases if the tax is placed on the buyers.

Explanation:

Elastic demand is the situation that when the price of a good goes up the quantity demanded reduces. Since alcohol demand and supply are both elastic, If commodity tax is imposed on sellers then they decrease the supply and increase the price of alcohol. The increased price of alcohol will make buyers buy less of alcohol thereby reducing the consumption of alcohol.

6 0
3 years ago
SCC Co. reported the following for the current year:
Juli2301 [7.4K]

Answer:

a. The inventory turnover is 8.00 times

b. The days’ sales in inventory is 68 days

Explanation:

a. In order to calculate the inventory turnover we would have to use the following formula:

inventory turnover=cost of goods sold/average inventory

inventory turnover=$ 48,800/($3,100+$ 9,100)/2

inventory turnover=8.00 times

b.  In order to calculate thedays’ sales in inventory we would have to use the following formula:

days’ sales in inventory=(Ending invenory/cost of goods sold)*365

days’ sales in inventory=($9,100/$48,800)*365

days’ sales in inventory=68 days

5 0
3 years ago
Equivalent Units of Materials Cost The Rolling Department of Kraus Steel Company had 200 tons in beginning work in process inven
belka [17]

Answer:

The total equivalent units for direct materials for October is  4,200

Explanation:

The Concept of Equivalent Units measures the number of units completed in terms of input element introduced in the process.

The Equivalent Units are Calculated on the units ending that is on  the Units Completed and Units of Closing Work in Process

Note that materials are added at the beginning of the process

<u>Units Completed</u>

Are 100% complete in terms of Raw Materials

Equivalent units = 3900 × 100 % = 3900

<u>Units of Closing Work in Process</u>

Are 100% complete in terms of Raw Materials

Equivalent units = 30 × 100 % = 300

Total Equivalent Units = 3900+300 =  4,200

6 0
3 years ago
The roots of today's anthropology emerged from very early accounts of travelers in previous centuries. what about these accounts
NISA [10]
Early accounts of ethnic groups and their cultures and habits came from scientific travelers like George M. Dawson who became director of the Geological Survey of Canada. In his travels in Canada to explore its mineral potential, he encountered many native groups who he described and also wrote of their languages so this is an example of how early travelers laid the foundation for the studies of later anthropologists. 
5 0
3 years ago
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