1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
Discuss the possible causes of change in Shoprite​
velikii [3]

Answer:

Economical factors, company reasons, innovative leadership, business growth, and competitor actions are common causes of business change.

Explanation:

The economic factors influencing business activities

In a country concerned with the production, distribution, and use of goods and services, the economy includes all activities.

The economic environment has a major impact on companies. Consumer expenditure affects prices, investment decisions, and the number of employees employed by enterprises.

In four main ways, the economic climate affects companies:

  • unemployment
  • Consumer income change levels
  • Rates of interest
  • Rate of taxation
6 0
3 years ago
Normal profit is the return to the entrepreneur when economic profits are zero. determined by subtracting implicit costs from to
diamong [38]

Normal profit is the return to the entrepreneur when the entire economic profits are equal to zero. Hence, the correct statement is Option A.

<h3>When the business earns normal profits?</h3>

A commercial enterprise may be in a state of normal profit while its economic income is equal to 0, that is why normal profit is also called “zero economic profit.” Normal profit takes place on the factor wherein all sources are being successfully used and could not be put to better use elsewhere.

Hence, Normal profit is the return to the entrepreneur when the entire economic profits are equal to zero. The correct statement is Option A.

learn more about Normal profit:

brainly.com/question/13800389

#SPJ1

5 0
2 years ago
What is outstanding credit card debt?​
joja [24]

Well, outstanding debt is debt you owe to a creditor or multiple creditors. Outstanding debt can be on a credit card, loan or student loan. ... If the amount you owe is close to your credit limit that is likely to have a negative effect on your score.

6 0
3 years ago
Time to do usps in post office. is open on all days or closed saturday
Law Incorporation [45]
It is open all days of the week
4 0
3 years ago
In risk management what does risk control include
Luda [366]

Financial, operational, perimeter, and strategic risks.
Like costs, labor, and weather.
8 0
3 years ago
Other questions:
  • The value of U.S. imports is Multiple Choice
    13·1 answer
  • "A corporate issuer is obligated to file an 8K report of significant events within how many business days of the event?"
    15·1 answer
  • Textra Plastics produces parts for a variety of small machine manufacturers. Most products go through two operations, molding an
    11·1 answer
  • The three-legged Ork, a space creature from the universe Warhammer, wears 1 right shoe and 2 left shoes. Which set of market bun
    12·1 answer
  • On January 2, 2017, Vaughn Inc. sells goods to Geo Company in exchange for a zero-interest-bearing note with face value of $10,1
    11·1 answer
  • A short-run phillips curve shows an inverse relationship between
    13·1 answer
  • Brewer Inc. has 5,000 shares of 8%, $50 par value, cumulative preferred stock and 100,000 shares of $1 par value common stock ou
    7·1 answer
  • A product is considered to be rivalrous if your consumption of the product reduces the quantity available for others to consume.
    11·2 answers
  • Read the following descriptions and identify the type of risk or term being described:
    9·1 answer
  • Describe how crashing and fast tracking can be used to compress a project schedule. What limitations could there be with each of
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!