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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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Property, plant, and equipment (net) $3,200,000 Liabilities: Current liabilities $1,000,000 Note payable, 6%, due in 15 years 2,
nadya68 [22]

Answer:

a. Ratio of fixed assets to long-term liabilities

   = <u>Fixed assets  </u>            x 100

      Long-term liabilities

    = <u>$3,200,000</u>  x 100

       $2,000,000

    = 160%

b. Ratio of liabilities to shareholders' equity

     = <u>Total liabilities</u>              x 100

        Shareholders' equity

      = <u>$3,000,000</u>  x 100

         $5,000,000

      = 60%

c. Asset turnover

   = <u>Sales</u>

      Total assets

   = <u>$18,750,000</u>

       $7,000,000

   = 3 times

d. Return on total assets

   = <u>Net income</u>   x 100

      Total assets

   = $930,000     x 100

      $7,000,000

   = 13.29%

  Explanation:

The ratio of fixed assets to long term liabilities equals fixed assets divided by long-term liabilities multiplied by 100.

Ratio of liabilities to stockholders' equity equals total liabilities divided by total stockholders' equity multiplied by 100. The total liability is equal to current liabilities plus long-term liabilities.

Asset turnover equals sales divided by total assets.

Return on total assets equals net income divided by total assets multiplied by 100.

4 0
3 years ago
The Almer Group announced its decision to merge with Dover Global Solutions. This is an example of a(n):
Shalnov [3]

An example of firm merger is when Almer Group announced its decision to merge with Dover Global Solutions.

<h3>What is a firm merger?</h3>

A firm merger refers to an formal arrangement whereby two or more existing companies unites into one new company.

Therefore, when Almer Group announced its decision to merge with Dover Global Solutions, it is an example of firm merger.

Read more about firm merger

<em>brainly.com/question/1977165</em>

5 0
2 years ago
Ellen decides to study overweight celebrities. she designs her study as an in-depth investigation of the singer adele. she inter
True [87]

<span>Ellen’s research design employs a <u>case study method</u>. This method can be used to examine real-life situations, in this case, the issue about overweight celebrities. It aims to understand the behavioral conditions as observed from the object. It is also based on an in-depth investigation focused on a single person or a group. </span>

8 0
3 years ago
Read 2 more answers
The highest value of total cost was $ 710 comma 000 in June for Horchata​ Beverages, Inc. Its lowest value of total cost was $ 5
marta [7]

Answer:

A. $ 450 comma 000

Explanation:

In order to compute the fixed cost per month first we have to determine the variable cost per unit which is shown below.

Variable cost per hour = (High total  cost - low total cost) ÷ (High production volume - low production volume)

= ($710,000 - $550,000) ÷ (13,000 units - 5,000 units )

= $160,000 ÷ 8,000 units

= $20

Now the fixed cost equal to

= High total cost - (High production volume × Variable cost per unit)

= $710,000 - (13,000 units × $20)

= $710,000 - $260,000

= $450,000

We simply applied the above formula

6 0
3 years ago
Which of the following firms has a high-performance culture? a. Rexot Bron Inc., a start-up firm that neither focuses on achievi
dsp73

Answer:

"C"

Explanation:

A high performance culture is a set of laid down rules (culture ) that an organization observe to achieve outstanding results (performance ) with the primary aim of getting an edge over competitors. It guides the daily activities of employees.

The four major attributes of a high performance culture are Strong leaders , employees involvement , continuous learning environment and flexibility  .

The corporate values of the organization is paramount and every action must be directed towards its achievement.                                                                                                                                      

3 0
3 years ago
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