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arlik [135]
3 years ago
12

The Allowance for Bad Debts has a credit balance of $ 7 comma 500 before the adjusting entry for bad debts expense. After analyz

ing the accounts in the accounts receivable subsidiary ledger using the agingminusofminus receivables​ method, the​ company's management estimates that uncollectible accounts will be $ 14 comma 000. What will be the amount of Bad Debts Expense reported on the income​ statement?
Business
1 answer:
Olenka [21]3 years ago
5 0

Answer:

The amount of bad debt exp is 7000

Explanation:

Allowance for bad debt exp has a credit balance of 7500 before adjusting entry

Now the management wants to estimate the uncollectible accounts at 14500

So we have to increase the balance of the allowance account from 7500 to 14500

Like 14500-7500=7000

So we need to record the entry by 7000 to increase the amount of the allowance to 14500

The entry

Bad debt exp Dr. 7000

Allowance for doubtful accounts Cr 7000

Now the bad debt exp will be reported in the income statement by 7000

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murzikaleks [220]

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3 years ago
A group of farmers agreed that if any farmer suffered a property loss, the loss would be spread over the entire group. In this w
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Answer:

pooling losses

Explanation:

This agreement embodies the concept of pooling losses. In this concept, each individual loss is spread over to the entire group. In order for this arrangement to be effective, a large number of farmers are required, so whenever a farmer suffers a loss, it will be mitigated due to the pooling over the large group.

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3 years ago
Mega Mart is a part of a business unit that has grown very slowly over the years. According to your local business newspaper, th
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The right answer for the question that is being asked and shown above is that: • • Mega Mart is a “dog.” A business unit is considered a dog is when the market growth rate is low and the relative market share is also low. 

Business unit that has grown very slowly.
They have a very low share.<span>
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8 0
3 years ago
At what level are milestones tracked?
Lemur [1.5K]

stakeholder level

Explanation:

I am not sure

4 0
3 years ago
Read 2 more answers
The market demand curve A. is found by vertically adding the individual demand curves. B. represents the sum of the quantities d
timama [110]

Answer:

B. represents the sum of the quantities demanded by all the buyers at each price of the good

Explanation:

The market demand curve is found by horizontally adding the individual demand curves.

The market demand curve slopes downward.

I hope my answer helps you

5 0
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