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lakkis [162]
3 years ago
13

The T- account for Cash had 3 transactions entered into it. It was increased by $400 and decreased by $100 and by $30, respectiv

ely. Its balance at the end of the period would be a (debit/credit) balance of $
Business
1 answer:
AleksandrR [38]3 years ago
5 0

Answer:

Debit balance of $270

Explanation:

The cash account is an asset account hence a debit entry to it increases the account balance while a credit entry reduces it.

If the account balance was increased by $400 and reduced by $130 (i.e $100 + $30), the net balance in the account

= $400 - $130

= $270

This is a debit balance.

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Uncollectible accounts; allowance method estimating bad debts as percentage of net sales vs. direct write-off method [LO7-5, 7-6
worty [1.4K]

Answer:

1. Bad debt expense = $97,500

2. Accounts receivable written off = $109,500

3. Bad debt expense for 2021 = $109,500

Explanation:

Bad debts expense refers to an uncollectible accounts expense that occurs because goods or services are delivered on credit a company to a customer who did not paid the amount owed.

The questions can be answered as follows:

1. What is bad debt expense for 2021 as a percent of net credit sales?

Under this, bad debt can be calculated using the following formula:

Bad expense = Net credit sales * Estimated bad debt percentage ....... (1)

Where;

Net credit sales = $6,500,000

Estimated bad debt percentage = 1.50%

Substituting the values into equation (1), we have:

Bad debt expense = $6,500,000 * 1.50% = $97,500

2. Assume Ervin makes no other adjustment of bad debt expense during 2021. Determine the amount of accounts receivable written off during 2021.

This can be calculated using the following formula:

Accounts receivable written off = Beginning uncollectible balance + Bad debt expenses - Ending uncollectible balance ............ (2)

Where;

Beginning uncollectible balance = $62,000

Bad debt expenses = $97,500

Ending uncollectible balance = $50,000

Substituting the values into equation (2), we have:

Accounts receivable written off during 2021 = $62,000 + $97,500 - $50,000 = $109,500

3. If the company uses the direct write-off method, what would bad debt expense be for 2021?

Under the direct write-off method, the exact amount of uncollectible accounts as they are specifically identified are recorded.

Based on this explanation, bad debt expense for 2021 is equal to the accounts receivable written off during 2021 calculated in part 2 above. Therefore, we have:

Bad debt expense for 2021 = $109,500

7 0
3 years ago
A cash payment of $130 on account was recorded as a $310 debit to accounts payable and a $310 credit to cash. the necessary corr
dexar [7]

(310-130=180)

debit cash $180; credit Accounts Payable, $180

Hope this helped :) !

8 0
3 years ago
Read 2 more answers
Select the correct answer. Parker is designing the compensation package for a candidate selected for the position of a software
zmey [24]

Answer:

C. candidate’s skill set

Explanation:

7 0
3 years ago
Which of the following statements explain(s) how the accounting equation applies to business?( check all the apply)
JulijaS [17]

The statements that explain how the accounting equation applies to business are:

  • The equation reflects that the total of what a business owns at any point in time will equal the total of what it owes creditors and owners.
  • The equation applies to all monetary business transactions.
  • The relation of assets, liabilities and equity is reflected in the equation.
  • The equation states that Assets = Liabilities +Equity

<h3>How does the accounting equation apply in business?</h3>

The accounting equation is given as:

Assets = Equity + Liability

This shows that everything that a business owns (assets) is only acquired thanks to the amounts that the owners ( equity) and creditors (liability) give.

It also shows how assets, liabilities and equity are related and therefore applies to all the monetary transactions in the business as it shows how the cash is affected when it is spent or received.

Find out more on the accounting equation at brainly.com/question/24401217

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5 0
1 year ago
Marlon wants to save money over a long period of time. He does not need to have easy access to the money, and he is worried abou
Ne4ueva [31]

Answer:

Bonds

Explanation:

Bonds fit all of Marlon's needs since:

  1. He can know the interest rate up front, e.g. the coupon rate of the bond, or  the market rate if the bond is purchased at a premium or discount.
  2. Some bonds have a very remote maturity date, up to 30 years (e.g. US securities) and that is a long period of time.
  3. Even though Marlon can cash his money before the bond matures (he can sell them), it is something that takes a few days and must be done by a broker.
  4. Bonds are very secure investments, specially US securities which are considered the most secure investment in the world, but even corporate bonds are considered secure. In case the firm goes is liquidated, bondholders receive their money before preferred stockholders and common stockholders.

8 0
3 years ago
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