The amount that should be debited to Bad Debts Expense, assuming 3% of outstanding accounts receivable at the end of the current year are estimated to be uncollectible is $1,913
<h3>What is bad debts expenses?</h3>
Bad debt are debts owned to a business which cannot be recovered. Here, the customer has chosen not to pay this amount.
Computation of amount to be debited to Bad Debts Expense:
= Accounts Receivable, debit balance of $97,800 * 3% of outstanding accounts receivable at the end of the current year
= $97,800 * 3%
= $2,934
Then,
= $2,934 - $1,021
= $1,913
Hence, the amount that should be debited to Bad Debts Expense, assuming 3% of outstanding accounts receivable at the end of the current year are estimated to be uncollectible is $1,913
Learn more about bad debts expenses here : brainly.com/question/18568784
Answer:
the average collection period for accounts receivables is 41.2 days
Explanation:
Average Collection Period measures the amount of time it takes to collect credit from accounts owing.
Average Collection Period = Average Accounts Receivables / (Sales/365)
=(($27600+ $56400)/2) / ( $372000/365)
= $42,000/1019.178082
= 41.20967742
= 41.2 days
Answer:
The amount recognized as a provision for loss contingency is $220,000
Explanation:
According to the United States Generally Accepted Accounting Principles (US GAAP), the provision for loss contingency should be recognized based on the estimated amount. If the range is given then we should report the lower amount or minimum amount
In the given question, two amounts are given i.e $220,000 and $250,000
So $220,000 should be reported
This is called "convertible debt", or "convertible bonds"
Convertible debt can be converted to equity, or a piece of ownership in the company. It's worth noting that Bell Ltd will need to inform any buyers of convertible debt that it plans to go out of business, since this is a major piece of information for any creditors or would-be shareholders.
