1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
jarptica [38.1K]
2 years ago
12

Haven Company uses the percentage of receivables method for recording bad debt expense. The accounts receivable balance is $600,

000 and credit sales are $2,700,000. Management estimates that 4% of accounts receivable will be uncollectible.
Required:
1. What adjusting entry will Haven Company make to record bad debt expense if the Allowance for Doubtful Accounts has a $5,000 credit balance before adjustment?
Business
1 answer:
Katena32 [7]2 years ago
7 0

Answer:

Debit Bad debt expense   $19,000

Credit Allowance for doubtful debt   $19,000

Explanation:

When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.  

To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.

Where a debit that had previously been determined to have gone bad gets settled, debit cash and credit bad debt expense.

Amount that may be uncollectible

= 4% *  $600,000

= $24,000

Given that the Allowance for Doubtful Accounts has a $5,000 credit balance before adjustment, the additional amount to be adjusted for

= $24,000 - $5,000

= $19,000

You might be interested in
About how many people in the u.s. claim arab ancestry?
jenyasd209 [6]

About three million people in the u.s. claim Arab ancestry

Who are Arabs?

  • A sizable ethnic group, the Arabs are also referred to as the Arab people, and they are mostly found in the Arab world, which includes parts of Western Asia, North Africa, the Horn of Africa, and the western Indian Ocean islands (including the Comoros).
  • A sizable number of Arabs have also emigrated to other parts of the world, including the Americas, Western Europe, Turkey, Indonesia, and Iran.
  • The word "Arab" is often used in modern contexts to describe people who are both speakers of Arabic and members of that ethnic group.
  • Arabs are also referred to as a socio-ethnic group in a source that contrasts Arabs in Europe with other socio-ethnic communities.
  • This contrasts with the more limited conventional meaning, which only refers to the offspring of Arabian tribes.

To learn more about Arab, refer to the following link:

brainly.com/question/7414837

#SPJ4

4 0
1 year ago
How much total interest will she pay over the course of the mortage for this house
Novosadov [1.4K]

Answer:

How are we suppose to know??????

Explanation:

4 0
3 years ago
Read 2 more answers
Contingency costs in the project costs estimate, also referred to as ____, are to cover unexpected situations that may come up d
slega [8]

Answer:

Reserves

Explanation:

Risk is any uncertain event with positive or negative consequences on a project. Contingency costs are related to risks, and therefore cannot be disregarded in risk management within a project. It is essential that management plan and prevent for the project to occur in a predictable and effective manner.

7 0
3 years ago
What is the main purpose of evaluating the career choices that you have researched?
Veseljchak [2.6K]
To chose the right career that fits you
8 0
3 years ago
Jane currently has $5,300 in her savings account and $2,000 in her checking account at the local bank. Instructions:
mrs_skeptik [129]

Answer:

A

  • M1 change = $500
  • M2 change = $0

B

  • M1 change = -$340
  • M2 change = -$180

Explanation:

A. M1 includes actual liquid cash in hand as well as cash in checking deposits.

M2 includes M1 as well as savings deposits and time deposits amongst others.

M1 change = +$500

$500 went from the Savings account which was not part of M1 to M1.

M2 change = $0

The money went from Savings to Checking which are both part of M2.

B.

M1 change = -$-180 - ( 500 - 180 -160 ) = -$340

Tax of $180 went out of the supply as tax. Jane deposits the remaining cash after paying $160 for goods into the savings account which is not part of M1. That remaining cash is = 500 - 180 - 160 = $160.

M2 change = -500 + 160 + 160 = -$180

For M2, only taxes will reduce money from it because the rest goes to checking deposits and savings accounts both of which are part of M2

4 0
3 years ago
Other questions:
  • A sweater is on sale for 40% off the original price of $68. the sales tax rate is 7%. what is the tax on the sale price?
    10·1 answer
  • A model for a​ company's revenue from selling a software package is ​r(p)equals=minus−2.52.5p2plus+850850​p, where p is the pric
    9·1 answer
  • During the year, Cheng Company paid salaries of $24,000. In addition, $8,000 in salaries has accrued by the end of the year but
    15·1 answer
  • Elements within the requirements listing tables that should be reviewed annually under the internal control program will include
    7·2 answers
  • Which of the following is not an attribute of every leader?
    6·2 answers
  • Bayside Coatings Company purchased waterproofing equipment on January 2, 20Y4, for $190,000. The equipment was expected to have
    6·1 answer
  • A company with shallow product line depth and broad product line breadth would have which of the following? Select one: a. few p
    13·2 answers
  • Sau khi thực hiện kiểm toán, KTV xác định là:
    12·1 answer
  • Buying insurance and investing in the future requires spending less in the present. Why is this a hard choice for many people? W
    10·2 answers
  • Peyton earns $1,700 every other week, but only brings home $1,100 due to deductions, what is Peyton’s gross pay?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!