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algol13
3 years ago
12

Daley Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following aging of rec

eivables analysis. a.Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 4.5% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method. Estimated balance of allowance for uncollectiblesb.Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $12,000 credit.c.Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $1,000 debit.
Business
1 answer:
makkiz [27]3 years ago
7 0

Answer:

$25,650

Journal entries

Explanation:

The computation and the journal entries are as follows        

The estimated balance of the allowance for Doubtful Accounts is shown below:

= Total account receivable × estimated percentage

= $570,000 × 4.5%

= $25,650

The journal entry is shown below:

a. Bad debt expense A/c Dr  $13,650           ($25,650 - $12,000)

  To Allowance for doubtful debts  $13,650

(Being bad debt expense is recorded)

b. Bad debt expense A/c Dr  $24,650          ($25,650 + $1,000)

  To Allowance for doubtful debts  $24,650

(Being bad debt expense is recorded)

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Explanation:

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It must allocate \$19000 for both the taxicab and \$41,000 for the rest of the license, the client list, and the company name registered.

Its cost of intangible material could be amortized for 180 months starting in April. (\frac{41,000}{180}) \times 9\ \ months = \$2,050 is her amortization deduction.

She could also use Section 179 to decrease her taxable money to \$17,890 (\$36,890 - \$19,000) but include her deduction.

Her taxable annual income is \$15,840 (\$17,890 - \$2,050).

In point b:

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(\frac{41,000}{180}) \times 9\ \ months = \$2,050  is her amortization deduction.

The taxable income here = \$0 (from \  \$17,100 -\$19,000) = -1,900.

Section 179 could be requested if another income is earned on the tax return (such as W-2 wages).

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Dividend yield is a financial metric that measures the rate of return that a stockholder receives every time a dividend is distributed. You can also calculate it by dividing dividends received by stock price.

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Know more about direct marketing here:

brainly.com/question/14457086

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