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frez [133]
3 years ago
6

Assume Simple Co. had credit sales of $249,000 and cost of goods sold of $149,000 for the period. Simple uses the percentage of

credit sales method and estimates that 2 percent of credit sales would result in uncollectible accounts. Before the end-of-period adjustment is made, the Allowance for Doubtful Accounts has a credit balance of $240. What amount of Bad Debt Expense would the company record as an end-of-period adjustment
Business
1 answer:
ella [17]3 years ago
5 0

Answer:

$5,220

Explanation:

The computation of the bad debt expense for the period end adjustment is shown below:

= Allowance of bad debts + credit balance of  Allowance for Doubtful Accounts

where,

Allowance of bad debts = 2% × $249,000 = $4,980

And, the credit balance of  Allowance for Doubtful Accounts is $240

Now put these values to the above formula  

So, the value would equal to

= $4,980 + $240

= $5,220

The journal entry is shown below:

Bad debt expense A/c Dr $5,220

   To Allowance for Doubtful Accounts $5,220

(Being bad debt is recorded)

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pishuonlain [190]

This isn't really a business question, but generally vegetables would be a healthier choice for a pizza topping instead of meats and cheeses.

7 0
2 years ago
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A farmer raises wheat and pays a portion of it as a tax that is collected by government agents and sent to a central storage fac
Alisiya [41]

Answer: redistribution

                                         

Explanation: In simple words, redistribution refers to the process in which something is distributed in way to achieve a specific objective like equality etc.

In other words, it can be seen as transfer of wealth or resources from one section of the society to the other sections. Redistribution is  performed by governments of the country and is implemented using tools such as taxes, charity and public services etc.

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8 0
3 years ago
EA4.
mart [117]

Answer:

$1,000

Explanation:

As we know that

Cost of material used = Beginning balance of inventory + purchase made during the month - ending balance of inventory

$900 = $200 + purchase made during the month - $300

$900 = -$100 + purchase made during the month

So, the purchase made during the month would be

= $900 + $100

= $1,000

We simply added the purchase to the beginning inventory and deduct the ending inventory

8 0
3 years ago
Current operating income for Bay Area Cycles Co. is $34,000. Selling price per unit is $100, the contribution margin ratio is 25
leonid [27]

Answer:

break even point in unit =5440 units

break even point in sales = $544000

total sale = $680000

Explanation:

given data

Current operating income = $34,000

Selling price = $100

margin ratio = 25%

to find out

Bay Area Cycle’s break even point in units and total sales dollars

solution

we get here first break even point that is express as

break even point in unit =  \frac{fixed\ cost}{contribution\ per\ unit}   ..................1

break even point in unit =  \frac{136000}{100*0.25}

break even point in unit =5440 units

so

break even point in sales =  \frac{fixed\ cost}{margin\ ratio}   ..................2

break even point in sales = \frac{136000}{0.25}

break even point in sales = $544000

and

total sales will be

total sale =  \frac{operating\ income+ fixed\ expense}{margin\ ratio}   ..................3

total sale =  \frac{34000+136000}{0.25}

total sale = $680000

3 0
3 years ago
How would increased benefits paid by employers affect worker's wages?
Vanyuwa [196]

Answer:

it would lower the wages

Explanation:

7 0
2 years ago
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