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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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Identify which are goals of monetary policy, and which are not. Goals of monetary policy Not goals of monetary policy Answer Ban
kondor19780726 [428]

Answer:

goals of monetary policy

financial market stability

economic growth

high employment

price stability

Not goals of monetary policy

increasing the size of the financial market

high inflation

improving banks' profits

Dual mandate :  high employment

price stability

Explanation:

Monetary policy are policies taken by the central bank of a country to increase or reduce aggregate demand.

There are two types of monetary policy :

Expansionary monetary policy : these are polices taken in order to increase money supply. When money supply increases, aggregate demand increases. reducing interest rate and open market purchase are ways of carrying out expansionary monetary policy

Contractionary monetary policy : these are policies taken to reduce money supply. When money supply decreases, aggregate demand falls. Increasing interest rate and open market sales are ways of carrying out contractionary monetary policy

Goals of monetary policy include

  • financial market stability
  • economic growth
  • high employment
  • price stability

The dual mandate of the Federal Reserve was birthed as a result of the stagflation of the 1970s. Stagflation is a period of high unemployment and high inflation levels

The dual mandate are : high employment, stable prices and moderate long-term interest rates.

4 0
3 years ago
All of the following are arguments against an explicit inflation targeting rule for monetary policy except:
White raven [17]

Answer:

C. An explicit target is easier to understand by households and firms which makes monetary policy more transparent.

Explanation:

Explicit inflation targeting is a monetary policy used by central banks to check inflation rate is under control for medium term. However, critics target this policy as they believe that instead central bank should have monetary policy for long term inflation control and economic growth for long term. Product price targeting or nominal income targeting would create more economic stability.

3 0
3 years ago
Alpha Company manufactures Product P and sells it in packs of 10 units. The actual results for the first week in January are as
kaheart [24]

Answer:67500

The right solution is "13,675 U".

Explanation:

According to the question,

The standard material cost will be:

= 25000\times (\frac{90000}{30000} )\times 0.90

= 25000\times 30000\times 0.90

= 67,500

The actual material cost will be:

= 95500\times 0.85

= 81,175

hence,

The total material price variance will be:

= Actual \ cost - Standard \ cost

= 81175-67500

= $13,675 (Unfavorable)

3 0
3 years ago
A(n) ____________________ is a contractual provision that says a seller of a business will not engage in a similar business with
Marysya12 [62]

Answer: licensing clause

Explanation:

8 0
2 years ago
The Galindo family plans to start a small business in our neighborhood. The father
dmitriy555 [2]

Answer:

$2,625

Explanation:

Interest is calculated using the formula

I = p x r x t

For Galindo family

I= interest,

P = principal amount : $10,000

r= Interest rate: 7.5 % or 0.075

t= times in years : 3.5 years( 42 months /12)

I= $10,000 x 0.075 x 3.5

I=750 x 3.5

I=$2,625

3 0
3 years ago
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