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BARSIC [14]
3 years ago
12

Abbott Company uses the allowance method of accounting for uncollectible accounts. Abbott estimates that 2% of credit sales will

be uncollectible. On January 1, Allowance for Doubtful Accounts had a credit balance of $3,300. During the year, Abbott wrote off accounts receivable totaling $2,300 and made credit sales of $113,000. There were no sales returns during the year. After the adjusting entry, the December 31 balance in Bad Debt Expense will be?
Business
1 answer:
kolezko [41]3 years ago
6 0

Answer:

$ 2,260

Explanation:

Since Allowance method is used,

Bad Debt Expense balance would be % estimated to be uncollectible.

Balance in Bad Debt Expense after adjusting entry would be

= $ 113,000 Credit sales x 2%

= $ 2,260

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"A firm finances itself with 30 percent debt, 60 percent common equity, and 10 percent preferred stock. The before-tax cost of d
Nutka1998 [239]

Answer:

WACC = Ke(E/V) + Kd(D/V)(1-T)  + Kp(P/V)

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Explanation:

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7 0
3 years ago
The government sector balance is equal to net taxes​ ________ government expenditure on goods and services. If that number is​ _
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less

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7 0
3 years ago
Journalise the followung transactions.
katovenus [111]

Answer:

Explanation:

S/No        Date        Transaction          Dr($)          Cr($)

1             Oct.1         Rent Expense      3,600

                                    Cash                                 3,600

2.           Oct.3        Advert. Expenses  1,200

                                    Cash                                   1,200

3.            Oct.5           Supplies              750

                                     Cash                                      750

4             Oct.6       Office equipment     8000

                                Accounts Payable                       8,000

5             Oct.10               Cash                1 4,800

                                Accounts receivable                    14,800

6              Oct.15    Accounts payable      7,110

                                      Cash                                         7,110

7.              Oct.27    Miscellaneous             400

                                        Cash                                        400

8               Oct.30    Utilities Expenses      250

                                       Cash                                          250

9               Oct 31     Accounts receivable   33,100

                                       Fees earned                             33,100

10              Oct.31          Utility Expense       1,050

                                           Cash                                        1050

11               Oct.31                Drawings           2,500

                                              Cash                                    2,500

3 0
3 years ago
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