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mrs_skeptik [129]
3 years ago
5

The Allowance for Doubtful Accounts account has a year-end credit balance, prior to adjustment, of $450. The bad debts are estim

ated at 3% of $650,000, the net credit sales. After the appropriate adjusting entry for bad debts, what will be the balance of the Allowance for Doubtful Accounts account?
Business
1 answer:
Eddi Din [679]3 years ago
5 0

Answer:$19500

Explanation:

The provision for doubtful debts accounts is an account that shows the amount of estimated debts that are expected to go bad at the end of the year. The estimated amount at the end of a year is debited to income account, credited to debtors account and left as a credit balance on the provision for doubtful debts accounts.

If at the end of a new year a new estimate is made which differs from the current estimated figure, then the account is adjusted to show the entire new estimate and that is why the answer to the question is 3% of $650,000 = $19,500.

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1 year ago
Janson Corporation Co.'s trial balance included the following account balances at December 31, 2021: Accounts receivable $14,000
11111nata11111 [884]

Answer:

$88,450 should be included in the current assets section of Janson’s December 31, 2021, balance sheet

Explanation:

Current Assets: The current assets are those assets which are converted into cash within one year.

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The computation of the total current assets is shown below:

= Accounts receivable + Inventory + Prepaid insurance + Short term investment

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= $88,450

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3 years ago
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1 year ago
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3 years ago
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nexus9112 [7]

Answer: 8%

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