Answer: The adjusting entry would be: Debit Bad debt expense $24,380; Credit Allowance for doubtful accounts $24,380.
Explanation: Since aging of the accounts receivable shows that 7% approximately of the outstanding receivable of $374,000 will be uncollectible. It then means $26,180 (7%*$374,000) will be uncollectible. Meanwhile, Tanning Company already has a credit balance of $1,800 in the allowance for doubtful accounts, therefore, an adjustment of $24,380 ($$2,180 - $1,800) has to be made.
Answer:
yes I would agree why does this need to be 20 characters
Answer:
E). Cash 5,194
Sales discounts 106
Accounts receivable 5,300
Explanation:
Preparation of the journal entry that Vander makes on September 18
Preparation of the journal entries made that Vander made earlier
Sep. 12
Dr Accounts receivable 5800
Cr Sales revenue 5800
(Being to record sales on account)
Sep. 14
Dr Sales returns and allowances 500
Cr Accounts receivable 500
(Being to record sales returns)
Preparation of the Journal entry that Vander makes on September 18
Sep. 18
Dr Cash 5194
[($5,800 -$500)- $106]
Cr Sales discount 106
[($5,800-$500) - (2% x $5,300)]
Cr Accounts receivable 5,300
($5,800 - $500)
(Being to record collection on account)
Based on the information given the transaction will be recorded T-accounts as: Debit Cash; credit Common stock.
T-accounts:
Since $1,000 was invested in the business in exchange for common stock which means that we are going to debit cash with the amount of $1,000 and credit common stock with the amount of $1,000.
Hence, the T-account will show:
Debit Cash $1,000
Credit Common stock $1,000
Inconclusion the transaction will be recorded T-accounts as: Debit Cash; credit Common stock.
Learn more about T-account here:brainly.com/question/14279491
Answer and Explanation:
b. any tax benefits that would be credited to additional paid-in capital
