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igomit [66]
3 years ago
11

Sanders Inc. is a small brick manufacturer that uses the direct write-off method to account for uncollectible accounts. At the e

nd of 2018, its balance for Accounts Receivable is $35,000. The company estimates that of this amount, $4,000 is not likely to be collected in 2019. In 2019, the actual amount of bad debts is $2,900. Record, if necessary, an adjustment for estimated uncollectible accounts at the end of 2018 and the actual bad debts in 2019.
Business
1 answer:
Eva8 [605]3 years ago
5 0

Answer:

no entry at the 2018 year-end. The Company uses direct method

bad debt expense              2,900 debit

        accounts receivable                      2,900 credit

--to record bad debt expense for 2019--

Explanation:

direct write-off method: we only do the adjustment of bad debt once it is determinated as uncollectible.

We do no entry at the end of 2018

on 2019 we recocgnize the bad debt expense and decrease account receivable.

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The act of starting and creating a business on one's own is called?​
Verdich [7]

Answer:

The process of setting up a business is known as entrepreneurship. The entrepreneur is commonly seen as an innovator, a source of new ideas, goods, services, and business/or procedures.

4 0
3 years ago
Read 2 more answers
Managers should be held responsible for only those cost, revenues, or assets over which they have substantial control.
lapo4ka [179]

Answer:

Managers should be held responsible for only those cost, revenues, or assets over which they have substantial control should be considered as a

FALSE Statement.

Explanation:

In order to understand this statement comprehensively, we need to know the following two views.

The Omnipotent View

The Symbolic View

The Omnipotent view

This view defines and makes managers wholly responsible for all the success and losses of an organisation. This view referred managers as completely liable for all the operations, causes and their resulting effects within an organisation. No matter what, they are held liable for the consequences. For example, when a football team performs, coaches and managers are held liable and they come under radar in case of bad performances.

The symbolic View

This view says that managers make decisions in the best interest of the firm on the base of available resources, assets, costs and revenues but there are certain things which are beyond their control, they have very less or little control over certain things like economy, political environment – rules and regulations, competitors actions, market conditions, having control over technology etc.

Consequently, mangers cannot be held completely responsible; they have limited impact and effect over the organisational performance.

7 0
3 years ago
During August, Boxer Company sells $348,000 in merchandise that has a one year warranty. Experience shows that warranty expenses
9966 [12]

Answer:

Dr Estimated Warranty Liability $8,600

Cr               Spare Parts Inventory  $8,600

Explanation:

The estimated warranty claim is worth $7,600 which means that the warranty claim must be debited by this amount as it was previously forecasted to be at $11,000 and in this month, the claim was worth $7,600. So decrease in warranty liability is necessary. Furthermore, the Spare Parts Inventory would be credited as the Spare parts would be used to fix the inventory which must be of $7,600 in value.

The double entry to record Warranty Repairs would be as under:

Dr Estimated Warranty Liability $8,600

Cr               Spare Parts Inventory  $8,600

3 0
3 years ago
Which of the businesses listed below is not a service-based business? car repair hotel house cleaning clothing
sergij07 [2.7K]

It would be Hotel/housing because it is a necessity, you need to sleep unlike repairing a car isn't needed to survive, it might help but you don't really need one. Same with clothes you can clean them yourself so if you don't have enough time to do it you take it to the cleaners.

3 0
3 years ago
13.) An investor is in a 30% combined federal plus state tax bracket. If corporate bonds offer 6% yields, what yield must munici
9966 [12]

Answer:

the yield that must offer for the investor in order to prefer them is 4.2%

Explanation:

The computation is shown below:

The after tax yield is

= Corporate bond yield × (1 - tax rate)

= 6% × (1 - 0.30)

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hence, the yield that must offer for the investor in order to prefer them is 4.2%

The same is relevant

4 0
3 years ago
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