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EastWind [94]
3 years ago
5

By what amount would net income differ if bad debt expense was computed using the percentage-of-receivables approach? Assume tha

t accounts written off were for sales in a prior year. Net income would be $Entry field with incorrect answer 2323416 Entry field with correct answer under the percentage-of-receivables approach.

Business
1 answer:
Murljashka [212]3 years ago
5 0

Answer:

By following the Accountants Principle and Dicksons policy of debiting Bad debt accounts as Accounts are written off, the Net income would have been impacted negatively (reduced) by the write off from Prior period of $31,330 only

However, by following the % of receivables approach, a total of $31,330 (Write off from prior period) + $9,240 (current period provision for bad debt) will impact the Net Income negatively (reduced)  = $40,570

Explanation:

Accounts receivable balance = $77,000

12% projected uncollectible debt = $9,240

Provision for bad debt under the % of receivables approach = $9,240

Amount written off related to prior year = $31,330

You might be interested in
The journal entry to record direct labor used in process costing is a(n):___________
Degger [83]

Answer:

b. increase in assets and an increase in liabilities.

Explanation:

The journal entry to record the direct labor cost used is shown below:

Work in process Dr

   To wages payable

(Being the direct labor cost used is recorded)

Here the work in process is debited as it increased the assets and credited the wages payable as it also increased the liabilities

3 0
3 years ago
A random sample of 16 students selected from the student body of a large university had an average age of 25 years and a standar
Alla [95]
Not significantly different from 24
3 0
3 years ago
Jason is shopping for a new car. He completes new credit applications at four different dealerships. Will this affect his credit
trasher [3.6K]

Applying for a loan in each of the dealerships he visited will have negative consequences on his credit score.

The credit score is a term to refer to the score that people have toward the financial system. The credit score is a kind of business card for each person regarding their financial life.

One of the most common mistakes people make is when they make multiple credit applications when they intend to buy something because this is a bad practice for their credit score.

For example, if Jason completed credit applications in four different dealers, his score may drop because the entities that are going to lend him the money consider this activity as something negative.

In addition, people who apply for loans in different entities are generally forced to do so because they are denied the possibility of credit, that is, they have an unfavorable history to access a loan.

Learn more in: brainly.com/question/16663880

8 0
3 years ago
Maricopa's Success scholarship fund receives a gift of $ 165000. The money is invested in stocks, bonds, and CDs. CDs pay 5.75 %
Sergio [31]

Answer:

$ 65,000 were invested in stocks, $ 70,000 were invested in bonds, and $ 30,000 were invested in CDs.

Explanation:

Since Maricopa's Success scholarship fund receives a gift of $ 165000, and the money is invested in stocks, bonds, and CDs, and CDs pay 5.75% interest, bonds pay 5% interest, and stocks pay 6.8% interest, and Maricopa Success invests $ 40000 more in bonds than in CDs, if the annual income from the investments is $ 9645, to determine how much was invested in each account, the following calculation must be performed:

95,000 x 0.068 + 55,000 x 0.05 + 15,000 x 0.0575 = 10,072.5

75,000 x 0.068 + 65,000 x 0.05 + 25,000 x 0.0575 = 9,787.5

70,000 x 0.068 + 67,500 x 0.05 + 27,500 x 0.0575 = 9,716.25

65,000 x 0.068 + 70,000 x 0.05 + 30,000 x 0.0575 = 9,645

Therefore, $ 65,000 were invested in stocks, $ 70,000 were invested in bonds, and $ 30,000 were invested in CDs.

4 0
3 years ago
Harlen Company is involved in a competitive bidding situation. The following costs are anticipated for a project to be bid with
erica [24]

Answer:

C. $1,370,000

Explanation:

Calculation to determine the cost figures that should be used in setting a minimum bid price if Harlen has excess capacity

Direct material $340,000

Direct labor $610,000

Allocated variable overhead $420,000

Minimum bid price $1,370,000

($340,000+$610,000+$420,000)

Therefore the cost figures that should be used in setting a minimum bid price if Harlen has excess capacity is $1,370,000

4 0
2 years ago
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