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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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James Corporation owns 80 percent of Carl Corporation's common stock. During October, Carl sold merchandise to James for $307,00
Arturiano [62]

Answer:

$69,075

Explanation:

James Corporation

Merchandise remaining in James’s inventory:

$307,000 × 50% = $153,500

Intra-entity gross profit:

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James’s ownership percentage of Carl will have no impact on this computation.

Therefore the amount of intra-entity gross profit in inventory at December 31 that should be eliminated in the consolidation process is $69,075

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3 years ago
Which of the following is a good example of inflation?
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D. It cost you $85 to gas up your car this month. But last month it only cost you  $50.

Explanation:

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4 years ago
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4 years ago
If your business is not efficient, where will your numbers fall on the Production Possibility Frontier?
Sergeeva-Olga [200]

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Inside the Production Possibility Frontier.

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