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Kamila [148]
3 years ago
9

Mazie Supply Co. uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $49,0

00, and it estimates that 5% will be uncollectible. Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has: (a) a $833 credit balance before the adjustment. (b) a $245 debit balance before the adjustment.
Business
1 answer:
natima [27]3 years ago
7 0

Answer:

a. Dr Bad debt expense $1,617

Cr Allowance for doubtful debt $1,617

b. Dr Bad debt expense $2,205

Cr Allowance for doubtful debt $2,205

Explanation:

When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.  

To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.

Estimated uncollectible amount

= 5% × $49,000

= $2,450

As such, if the allowance for doubtful;

has a $833 credit balance before the adjustment

Additional allowance required

=$2450 - $833

= $1,617

Entries required are

Dr Bad debt expense $1,617

Cr Allowance for doubtful debt $1,617

b) a $245 debit balance before the adjustment.

This means that off the amount uncollectible $245 has already gone bad

Adjusting entries required amounts to

= $2450 - $245

= $2205

Dr Bad debts expense $2205

Cr Allowance for doubtful debt $2205

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natta225 [31]

Answer: Option E

               

Explanation: Corporate culture refers to the values and beliefs of an organisation that originates from its several different factors like strategy, customers and investors etc. The corporate culture of an organisation affects the attitude and behavior of all its members.

It sometimes works as a guide when the organisation faces an ethical dilemma. In a healthy corporate culture every employee in the organisation is treated with respect regardless of his or her status.

Thus, from the above we can conclude that the correct option is E.

5 0
3 years ago
The marginal principle of retained earnings means that each potential project to be financed by retained earnings must:
Sedaia [141]

Answer:

The correct answer is D

Explanation:

Marginal principle is the principle which is referred to an increase in the activity level when the marginal advantage exceeds or more than the marginal cost.

So, the marginal principle of retained earnings would be when it will provide the higher rate of  return than the shareholders who could achieve after paying taxes on the dividends.

3 0
3 years ago
This is so hard somebody please help me out of the goodness of your hearts ❤️
Artemon [7]

Answer:

I think it's C

Explanation:

Hshdh lowballing is basically changing the price lower or higher until someone agrees right.

8 0
3 years ago
In previous years, Cox Transport reacquired 2 million treasury shares at $22 per share and, later, 1 million treasury shares at
Hoochie [10]

Answer:

24 million shares  ; $16 million

Explanation:

The computation of the weightage number of treasury shares are shown below:

             Number of shares       Price       Total

                   2                              $22         $44 million

                   1                               $28         $28 million

Total           3                                               $72 million

So, the weighted average number of shares would be

= $72 ÷ 3 = 24 million shares

Now the journal entry would be

Cash A/c Dr $64 million                  (2 million treasury shares × $32)

          To Paid in capital - share repurchase A/c $16 million

          To Treasury stock $48 million    (24 million treasury shares × $2)

(Being the treasury shares are sold)

4 0
3 years ago
What does the phrase "like animals escaped from their caves" imply about the sun's impact on the children? (Paragraph 60)
Burka [1]

This question is about the phrase "Like animals escaped from their caves".

This phrase refers to the impact of sun on children. Children are innocent and they want to enjoy their life. They do not have worries of life.

They are free from stress. If weather is rainy or snowy it may hinder children from going out.

Children will have to stay inside their house due to bad weather conditions so they will loose their creativity.

The Phrase "Like animals escaped from their caves" means sun will compliment children to play and go outside.

The correct answer is B. The sun makes the children feel free.

Learn more at brainly.com/question/25859367

5 0
2 years ago
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