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arlik [135]
2 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]2 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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Dave Ryan is the CEO of Ryan's Arcade. At the end of its accounting period, December 31, Ryan's Arcade has assets of $632,000 an
o-na [289]

Answer:

a) Stockholders' equity  = $411,690

b) Stockholders' equity  = $477,930

Explanation:

Accounting equation is defined as Assets = Liabilities + Equity.

a) If t the end of its accounting period, December 31, Ryan's Arcade has assets of $632,000 and liabilities of $220,310, the Stockholders' equity as of December 31 of the current year would be determined as follows:

$632,000 = $220,310 + Equity

Stockholders' equity  = $632,000 - $220,310

Stockholders' equity  = $411,690

b) If assets increased by $84,040 and liabilities increased by $17,800 during the next year, then Stockholders' equity would be determined as follows:

$632,000 + $84,040 = $220,310 + $17,800 + Equity

$716,040 = $238,110 + Equity

Stockholders' equity  = $477,930

8 0
3 years ago
A stock has annual returns of 5 percent, 21 percent, -12 percent, 7 percent, and -6 percent for the past five years. The arithme
sergij07 [2.7K]

Answer:

Arithmetic = 3%

Geometric = 2.37%

Explanation:

The arithmetic average of 'n' returns is given by:

A = \frac{\sum r_i}{n}

For five returns of 5% ,21%, -12%, 7%, and -6%:

A=\frac{0.05+0.21-0.12+0.07-0.06}{5}\\ A=0.03=3\%

The geometric average of 'n' returns is given by:

G=\sqrt[n]{(1+r_1)*(1+r_2)*...*(1+r_n)}-1

For five returns of 5% ,21%, -12%, 7%, and -6%:

G=\sqrt[5]{(1+0.05)*(1+0.21)*(1-0.12)*(1+0.07)*(1-0.06)}-1\\G=0.0237=2.37\%

8 0
3 years ago
Discuss some of the ways technology is making it possible for consumers to avoid advertising messages and the impact this is hav
poizon [28]

Answer:

Technology has advanced in this era to ease the life of humans. The latest technology is used by the businesses to provide their customers best services. The technology has also provided customers to reject and stop unwanted advertisements. They can block the advertisement messages they do not wish to receive any more.

Explanation:

The technological advancement has provided ways for business development to media and advertisement industry but it has also created negative impact to the industry. The customers block the advertisement messages which they do not find feasible. The advertisement may go wasted because the impact of advertisement did not reached the customers.

8 0
2 years ago
Ashley received a scholarship to be used as follows:___________tuition $6,000; room and board $9,000; and books and laboratory s
mojhsa [17]

Answer:

A) True THE CORRECT ANSWER

Explanation:

3 0
3 years ago
A grocery chain is interested in exploring the impact effective supply chain management would have. Suppose that for every $1 of
Verdich [7]

Answer:

$3.70

Explanation:

In this question we have to assume the items values

Let say

Sales = $100

So supply chain it spends 50% i.e $50

Profit is 4% i.e $4

Since the 46% is dividend among fixed and production costs

So the fixed cost is $23 and variable cost is $23

Now if the sales increase by $X, the revenue will increase by X.

So it would also increased the cost by X × (0.5+0.23)

And in overall, the profit is also increased

Plus it is given that there is  27% profit margin

So, the equation is

0.27X = 1

Therefore X = $3.70 with additional profit of $1

3 0
3 years ago
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