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Bogdan [553]
3 years ago
5

All sales are made on credit. Based on past experience, the company estimates that 0.6% of net credit sales are uncollectible. W

hat amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared?
Business
1 answer:
RideAnS [48]3 years ago
4 0

Answer:

$4,800

Explanation:

the company estimates that 0.6% of total sales will be bad credit, so to determine the amount of bad debts expenses debited at the end of the year: total sales x 0.6% = $800,000 x 0.6% = $4,800

When a company uses the percent of sales method to estimate bad debts, all we need to do is multiply the total amount of credit sales times the estimated percent. In this case, the company sells all its goods on credit, so credit sales = total sales

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Limerick, Inc. has budgeted total sales for January, February, and March of $800,000, $900,000, and $950,000 respectively. Cash
Naya [18.7K]

Answer:

$905,000

Explanation:

February Collection will be as follows :

<em>February Collection = Cash Sales + Credit Sales </em>

                                  =  $900,000 x 25 % + $900,000 x 40 % + $800,000 x 60 %

                                  = $905,000

the amount of cash received from sales during the month of February is $905,000.

7 0
3 years ago
Parwin Corporation plans to sell 30,000 units during August. If the company has 11,500 units on hand at the start of the month,
raketka [301]

Answer:

Production = 31000 Units

Explanation:

To calculate the production requirement for the month of August to meet the required sales and desired ending inventory, we will use the following formula,

Sales = Opening Inventory + Production - Closing Inventory

Plugging in the values we have for sales, opening inventory and closing inventory, we calculate the production to be,

30000 = 11500 + Production - 12500

30000 + 12500 - 11500 = Production

Production = 31000 Units

6 0
3 years ago
_____ are any aspects of a good or service that a customer must believe in but cannot personally evaluate even after purchase an
stiv31 [10]

Answer:

<u>c. Credence attributes</u>

Explanation:

  • Credence is a good that has attributes that cannot be observed by the consumer even after purchasing the thus makes it difficult for them to access its utility such as expert services and medical procedures, automobile repairs, etc.
  • Here the seller has the option to change the quality ad quantity of the price by using his tactics and hence can cheat buyers with an inferior good. Like the automobile repair may be insufficient.
7 0
3 years ago
When marketers target future buyers with sampling, coupons, and rebates while using publicity to target all customers in a parti
Akimi4 [234]

They are exhibiting management of the promotion mix in marketing.

To achieve a specific marketing goal, a promotional mix is an amalgamation of advertising techniques such as advertising, sales, public relations, and direct marketing. Typically, the promotional mix is only one component of a larger marketing strategy. You may select a few strategies or determine that a combined effect of every one of them will be most impactful for your advertisement.

The promotional mix is comprised of four components. Direct marketing, brand management, personal sales, and ad campaigns are some of them.

A promotional mix is a component of the total marketing plan, which would be the basic fundamental model used by many enterprises.

Learn more about marketing here-

brainly.com/question/13414268

#SPJ4

4 0
2 years ago
The imposition of a binding price floor on a market causes quantity demanded to be
viva [34]
A price floor is the mining price that can be charged for an item. A binding price floor is a price set above market average pricing. Since the government regulates this and will not let them sell below the average market price, the price is set in stone for the products price in the market. 
5 0
3 years ago
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