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Anarel [89]
4 years ago
6

Allowance for Doubtful Accounts has a credit balance of $500 at the end of the year (before adjustment), and uncollectible accou

nts expense is estimated at 2% of sales. If sales are $600,000, the amount of the adjusting entry to record the provision for doubtful accounts is
Business
2 answers:
Rudik [331]4 years ago
6 0

Answer:

The amount of the adjusting entry to record  the provision of doubtful accounts  = $700

Explanation:

Allowance for doubtful accounts (before adjustment) = $500

sales = $600000

uncollected accounts expenses ( bad debit ) = 2% of sales

                                                                            = 0.02 * $600000

                ∴ estimated bad debit                           = $1200

The amount to be adjusted ( the amount of the adjusting entry to record the provision for doubtful accounts )

= ( estimated bad debit - allowance before adjustment )

=  $1200 - $500

= $700

Svetllana [295]4 years ago
3 0

Answer:

Bad Debts Expense  $ 700 Debit.

Allowance for  Doubtful Accounts $ 700 Credit

Explanation:

Sales     $600,000

Uncollectible accounts expense is estimated at 2% of sales

Uncollectible accounts expense= $ 600,000 * 2%=  $ 1200

Unadjusted Balance = $ 500 Credit

Estimated Balance =   $ 1200 Credit

Required Adjustment $ 700 Credit

Adjusting Entry to record the provision for doubtful accounts is

Bad Debts Expense  $ 700 Debit.

Allowance for  Doubtful Accounts $ 700 Credit

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Answer:

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5 0
3 years ago
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goblinko [34]

A company's plan for the acquisition of long-lived assets, such as buildings and equipment, is commonly called a Capital Budget.

<h3>What is a Capital Budget?</h3>
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7 0
2 years ago
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crimeas [40]

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7 0
3 years ago
An increase in the price of oranges would lead to
Art [367]

Answer:

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