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
Dennis_Churaev [7]
3 years ago
8

Using the income statement method for accounting for uncollectible accounts, a company estimates that 2.5% of credit sales will

eventually become uncollectible. If credit sales during the year are $400,000 and accounts receivable at the end of the year are $80,000, the adjustment for estimated uncollectible accounts will require
a: Credit to Accounts Receivable for $2,000.
b. Debit to Bad Debt Expense for $10,000.
c. Debit to Allowance for Uncollectible Accounts for $10,000.
d. Credit to Bad Debt Expense for $8,000.
Business
1 answer:
Digiron [165]3 years ago
7 0

Answer:

the adjustment for estimated uncollectible accounts will require

b. Debit to Bad Debt Expense for $10,000.

Explanation:

There are two primary methods for estimating bad-debt expense. The first is an income-statement approach that measures bad debt as a percentage of sales.

Accout receivable at the end_ 80000

Credit sales_______________400000

 

Estimate________________ 2,50%

Debit bas debt expense______10000

You might be interested in
''what type of goods includes raw materials used to produce other products?''
Ulleksa [173]
Industrial goods are type of goods that includes raw materials used to produce other products. They are physical items used by companies to produce other products. Derived demand is the consumer demand for consumer goods. On this  derived demand is based the d<span>emand for </span>industrial goods.

5 0
3 years ago
A marketing plan includes this marketing objective: "Create positive feelings about our brand." What is the main problem with th
Over [174]
I think is C.
it is not specific and measurable.
4 0
3 years ago
Read 2 more answers
The development costs were incurred after technological and commercial feasibility was established and after the future economic
Anarel [89]

Complete Question:

Pribuss Engineering prepares its financial statements according to International Financial Reporting Standards. During 2018, the company incurred the following costs related to a new product design:

Research for New Design $2.4M

DVMPT of New Product $1.3M

Patent Filing Fees $52K

The development costs were incurred after technological and commercial feasibility was established and after the future economic benefits were deemed probable. The project was successfully completed and the new product was patented before the end of the 2018 fiscal year. What amount should Pribuss expense in its 2018 income statement related to the above expenditures?

Answer:

The Research expenses of $2.4M that are written as expense in the Income statement and the Development costs of $1.3M and patent legal fees of $53k are capitalized.

Explanation:

The reason is that the International Standard IAS 38 Intangible Assets says that the expenditure incurred on the research that hasn't entered development phase must be written as expense in the year and the expenditure incurred on the development phase of the research outcomes must be capitalized to the extent it is ready for use. In this case $1.3M is clearly a development cost and patent legal fees of $53k is the expenditure that will prepare the asset and making it ready for use, so it must also be capitalized.

8 0
3 years ago
To be considered of high quality, a product must: Select one: a. meet high specifications b. meet customers' stated expectations
masha68 [24]

Answer:

D

Explanation:

meet safety standards

4 0
3 years ago
What is the most likely reason some people avoid all carbohydrates in order to lose weight?
liberstina [14]

Answer:

People avoid carbohydrates, because they have a high calory density.

6 0
3 years ago
Other questions:
  • Franklin has $2,500 in a savings account that pays interest at the rate of 4% annually. how much interest will he earn after one
    7·1 answer
  • What are the underlying reasons for the law to continue to make distinctions between real and personal property, intangible and
    12·1 answer
  • an assessment made against a property to pay for public improvement by which the assessed property is supposed to be especially
    10·1 answer
  • On August 1, 2018, Kira purchased 100 shares of ITC stock for $5,000. There were no subsequent adjustments to her basis. On Augu
    14·1 answer
  • The inefficiency associated with monopoly is due to a the monopoly's profits. b the monopoly's losses. c overproduction of the g
    9·1 answer
  • Rosenthal company manufactures bowling balls through two processes: Molding and Packaging. In the Molding Department, the uretha
    7·1 answer
  • During their first year, Austin and Associates bought $32,000 worth of supplies for their CPA firm. When purchased, the supplies
    12·1 answer
  • North Star prepared the following unadjusted trial balance at the end of its second year of operations ending December 31. Accou
    7·1 answer
  • The factors that affect worker productivity include
    15·1 answer
  • You are the manager of a monopoly, and your analysts have estimated your demand and cost functions as P = 200 − 2Q and C(Q) = 1,
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!