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iVinArrow [24]
3 years ago
11

On December 31, 2018, the balance in Megan's Products Accounts Receivable was $680,000 and net credit sales amounted to $3,800,0

00 during 2018. An aging analysis of the accounts receivable indicated that $40,000 in accounts are expected to be uncollectible. Prepare the adjusting entries to record estimated bad debt expense using the percentage-of-receivables basis under each of the following independent assumptions:

Business
1 answer:
Andru [333]3 years ago
7 0

Answer and Explanation:

The Journal entry is shown below:-

a. Bad Debt Expense Dr, $36,800            ($40,000 – $3,200)

                    To Allowance for Doubtful Accounts $36,800

(Being the bad debt expense is recorded)

For recording this we debited the bad debt expense as it increased the expenses and at the same time it reduced the assets so the allowance for doubtful accounts is credited

b. Bad Debt Expense Dr, $40,730          ($40,000 + $730)

     To Allowance for Doubtful Accounts $40,730

For recording this we debited the bad debt expense as it increased the expenses and at the same time it reduced the assets so the allowance for doubtful accounts is credited

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Answer:

Increase in income= $2,965.6

Explanation:

Giving the following information:

Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 23,600 golf discs is:

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Fixed overhead 47,200

Total $117,764

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Total variable cost= (12,036 + 35,400 + 23,128)= 70,564

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3 years ago
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Answer:

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During contraction, the unemployment rate rising as employers lay-off workers due to reduced demand. Incomes and profits decline, and the GDP value decreases to low or negative values. The contraction period starts with a recession, which is a decline in GDP value for two consecutive quarters.

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