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Vikentia [17]
3 years ago
10

The Allowance for Bad Debts account has a credit balance of $ 3 comma 000$3,000 before the adjusting entry for bad debts expense

. The​ company's management estimates that 44​% of net credit sales will be uncollectible for the year 2019. Net credit sales for the year amounted to $ 290 comma 000$290,000. What is the amount of Bad Debts Expense reported on the income statement for​ 2019?
Business
1 answer:
Triss [41]3 years ago
8 0

Answer:

The bad debt expense which should be recorded in the income statement for the year 2019, amounts to $127,600

Explanation:

The bad debt expense which should be recorded in the income statement for the year 2019 is computed as:

= Net Credit Sales × Uncollectible credit sales for the year 2019

where

Net Credit Sales is $290,000

Uncollectible credit sales for the year 2019 is 44%

Putting the values in the above formula:

= $290,000 × 44%

= $127,600

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A company with a functional organization structure has more difficulty doing which of the following? Focusing on the goods, mana
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Answer:

Focusing on the goods

Explanation:

Functional Organization Structure  advantages includes enhancing of the work efficiency and productivity due to the specialized skills and technology. Employees are highly motivated as they see clearly their career path within the functional units. Functional specialization can minimize the cost of operation.

Therefore, Focusing on the goods is a clear challenge as the company is managed thinking on the roles of the different departments rather than focusing in the products&goods

7 0
3 years ago
Free rider problems are everywhere. For example, some restaurants let each food server keep his or her own tips. Other restauran
Gennadij [26K]

Answer:

Check the explanation

Explanation:

a. Gains from being nice = $60

reason: outcome for being nice = $100; outcome for being mean = $40 So the gains from being nice = 100 - 40 = 60

b. Average mean server earnings = $40 (given)

Average nice server earnings = $ 100 (given)

  Change in tips per server if all of the servers switch from being mean to being nice = $60 (100 - 40)

c. Individual payoff of my becoming nice = $6

reason: Total number of servers = 10

Change to the tip pool with my change in behavior from mean to nice = $60

My share in this change = 60/ 10 =6

d.  1-I am more likely to be nice when I keep my own tips.

reason: I can keep $100 if I am nice. But in a tip pool, some of the others may be mean. This will bring the pool amount lower, thereby my share may be less than $100. So I prefer to keep my own tips.

4 0
3 years ago
Blair Madison Co. issues $1.9 million of new stock and pays $281,000 in cash dividends during the year. In addition, the company
saw5 [17]

Answer:

$759,000

Explanation:

Given that,

New stock issues = $1.9 million

Dividend paid in cash during the year = $281,000

The net cash flow provided by financing activities is:

= Million new stock issue increase in cash - Cash dividend decrease in cash + Increase in cash - Decrease in cash

= $1,900,000 - $281,000 + $1,590,000 - $2,450,000

= $759,000

6 0
3 years ago
Curtis invests $250,000 in a city of Athens bond that pays 7 percent interest. Alternatively, Curtis could have invested the $25
Anna11 [10]

Answer:

7%

Explanation:

Interest income if Curtis invested

250,000 x 9% = 22,500

After tax interest income = 22,500 - (22,500 x 24%)

= 17,100

After tax rate of return = 17,100/250000

0.068

Approximately 7%

7 0
3 years ago
Read 2 more answers
If the company also has $1,000 of petty cash on hand (recorded in a separate account), what total amount should the company repo
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Answer:

Explanation: from the above question, the total of cash and cash equivalent to be recorded in the balance sheet includes all cash balances in the bank and cash balance in the petty cash account.

From the above question, the cash and cash equivalent balance as at April 30 is $1,000 plus all bank balances as at that date.

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3 years ago
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