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
Temka [501]
3 years ago
9

Smart Art is a new establishment. During the first year, there were credit sales of $40,000 and collections of credit sales of $

36,000. One account for $650 was written off. The company decided to use the aging method to account for bad debts expense. It has calculated an amount of $200 as its estimate of uncollectible amounts at year-end. Prepare the journal entry required to record Bad debts expense at the end of the year.
Business
1 answer:
mart [117]3 years ago
8 0

Answer:

Explanation:

The journal entry is shown below:

Bad debt expense A/c Dr $850

           To Allowance for doubtful debts $850

(Being the bad debt expenses recorded)

The computation of bad debt expense is shown below:

= Written off-balance + estimated amount at the end of the year

= $650 + $200

= $850

For recording the bad debt expense we debited the expense account and credited the contra asset account

You might be interested in
Which one of the following statements is correct?
-Dominant- [34]

Answer:

b. Financial statements are frequently the basis used for performance evaluations.

Explanation:

The financial statements are the accounting reports of an organization, through these documents it is possible to analyze what is the financial situation of a company in the internal and external environment, what are its greatest strengths and weaknesses.

They are instruments for evaluating organizational performance because they provide essential information about the general accounting situation of a company, which ensures greater reliability for a manager to make a decision directed to correct a problem or strategic implementation to achieve a certain result. It also allows stakeholders to analyze essential data and information when deciding to invest or do business with a particular company.

8 0
3 years ago
Renee, a project manager, is responsible for developing a project plan for her new project. To do so, she needs to consider all
Serggg [28]

Answer:

A) FMEA

Explanation:

the project is moced developing the make list

7 0
3 years ago
Juan spends all of his income on baseball cards and candy. At his current consumption bundle, the marginal utility of baseball c
Aleks [24]

Answer:

Juan should increase his consumption of candy and decrease his consumption of baseball cards.

Explanation:

Given that

The baseball cards marginal  utility is 20

And the candy marginal utility is 10.

Now If the baseball cards price is $10,

and the candy price is $2

So if we divide the marginal utility with the price so it will come 2 for baseball card and 5 for candy so the consumption of the candy should be increased while on the other hand the consumption of the baseball card should be decreased

7 0
4 years ago
In the current year, Hanna Company reported quality-assurance warranty expense of $190,000 and the warranty liability account in
Leona [35]

Answer:

210,000

Explanation:

=190,000+20,000

6 0
4 years ago
Zach has decided to start his own photography studio. To purchase the necessary equipment, Zach withdrew $10,000 from his saving
Serga [27]

Answer:

Zach's annual opportunity cost of the financial capital(implicit + explicit)that has been invested in the business is $700.        

Explanation:

opportunity cost = 3%($10,000) +8%($5,000)

                           = $300 + $400

                           = $700

Therefore, Zach's annual opportunity cost of the financial capital(implicit + explicit)that has been invested in the business is $700.        

   

3 0
3 years ago
Other questions:
  • XYZ Company purchased a new piece of equipment on January 1, 2022. The following information relates to the equipment purchased:
    5·1 answer
  • A unilateral contract is formed at the moment when the contract is performed.
    12·1 answer
  • QS 9-4 Interest-bearing note transactions LO P1 On November 7, 2017, Mura Company borrows $190,000 cash by signing a 90-day, 12%
    7·1 answer
  • Most informational reports are written a. using a formal writing style. b. for a neutral or receptive audience. c. using the ind
    8·1 answer
  • What are the 4 p's of marketing
    12·1 answer
  • What could happen if you do not keep track of your checks you write?
    14·1 answer
  • When customers around the world are willing to buy the same kind of product, or slight variations thereof, managers are more lik
    14·1 answer
  • A high-tech computer company reported the following information in a recent annual report (all dollar amounts are expressed in m
    13·1 answer
  • What is agriculture refer the attachment!​
    8·1 answer
  • A company has the following liabilities as of December 31:
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!