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Anarel [89]
3 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]3 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]3 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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Current assets are assets that are expected to be sold, used, or exhausted through standard business operations with one year.

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5 0
2 years ago
The diagram shows an aspect of fiscal policy.
storchak [24]

Answer

C. The government spending to strengthen the economy

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6 0
3 years ago
Read 2 more answers
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Eastport Inc. was organized on June 5, Year 1. It was authorized to issue 470,000 shares of $9 par common stock and 65,000 share
Ann [662]

Answer and Explanation:

a. The journal entries are shown below:

1) Cash Dr  (16,000 shares × $14) $224,000

        To Common stock (16,000 shares × $9) $144,000

        To Additional paid in capital - common  (16,000 shares × 5) $80,000

(Being the issuance of the common stock is recorded)

2 Cash Dr  (15,000 shares × $30) $450,000

        To Preferred stock (15,000 shares × $25) $375,000

        To Additional paid in capital - preferred  (15,000 shares × $5) $75,000

(Being the issuance of the preferred stock is recorded)

3) Cash Dr  (52,000 shares × $17) $884,000

        To Common stock (52,000 shares × $9) $468,000

        To Additional paid in capital - common  (52,000 shares × $8) $416,000

(Being the issuance of the common stock is recorded)

We debited the cash to record this journal entries as it raised the assets and credited the common stock and additional paid in capital, as it also raised the equity of the stockholder

b. The preparation of the stockholder equity section of the balance sheet is presented below:

                          Stockholders' equity section of the balance sheet

Common stock  $612,000    ($144,000 + $468,000)

preferred stock $450,000

Additional paid in capital - preferred $75,000

Additional paid in capital - common   $496,000   ($80,000 + $416,000)

Total $1,633,000

4 0
3 years ago
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