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Alina [70]
4 years ago
10

At December 31, Hawke Company reports the following results for its calendar year. Cash sales $ 1,285,070 Credit sales $ 3,610,0

00 In addition, its unadjusted trial balance includes the following items. Accounts receivable $ 1,093,830 debit Allowance for doubtful accounts $ 15,160 debit Required: 1. Prepare the adjusting entry to record bad debts under each separate assumption. Bad debts are estimated to be 3% of credit sales. Bad debts are estimated to be 2% of total sales. An aging analysis estimates that 6% of year-end accounts receivable are uncollectible.
Business
1 answer:
Lady_Fox [76]4 years ago
7 0

Answer:

Explanation:                                              Dr                      Cr

1)

Allowance for doubtful account

3%*3610000                                                                    108300

Bad debt expense                                  108300

2)Allowance for doubtful account

2%*(1285070+3610000)                                                 146,852.10

Bad debt expense                                 146,852.10

3)Allowance for doubtful account

1093830*6%                                                                       65,629.80

Bad debt expense                                    65,629.80                

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Answer: Option(d) is correct.

Explanation:

Other things remains constant, an increase in the interest rate will generally reduces the demand for loanable funds because loanable funds become more expensive for the borrowers. This increase in interest rate also shift the demand curve towards left for the loanable funds.

With increased interest rate, borrowers have to pay more for the loans. Conversely, if there is a fall in an interest rate then as a result demand for the loanable funds increases, as it will become cheaper for the borrowers.

4 0
3 years ago
For each of the following separate transactions,
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Answer: The answer is provided below

Explanation:

a. The reconstructed journal entry has been prepared and attached.

b. The following are the effects it has on the investing section or the financing section of the statement of cash flows.

The first transaction will lead to a cash inflow of $8,000 from the investing activities.

The second transaction is non-cash transaction therefore, it will not be reported in either the financing or the investing activities.

The third transaction will lead to a cash inflow of $2,000 from the financing activities.

The fourth transaction will lead to a cash outflow from the financing activities.

Thw diagram has been attached.

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4 years ago
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Answer:

Paradox of Power

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7 0
3 years ago
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Explanation:

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The balance in accounts receivable at the beginning of 2021 was $690. During 2021, $3,200 of credit sales were recorded. If the
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Answer:

$3,620

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Therefore:

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