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Bond [772]
3 years ago
14

The Allowance for Bad Debts has a credit balance of $ 9 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 $ 15 comma 000. What will be the amount of Bad Debts Expense reported on the income​ statement?
Business
1 answer:
Natali5045456 [20]3 years ago
6 0

Answer:

$5,500

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.

Adjustments to allowance required

= $15,000 - $9,500

= $5,500

The entries to be posted are

Debit Bad debt $5,500

Credit Allowance for Doubtful debt $5,500

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Answer:

True

Explanation:

A mortgage loan is done to purchase or create real state or by existing property owners to raise funds for any purpose, in both cases, while putting a lien on the property being mortgaged.

The collateral will be the property, because is the item pledged to guarantee the repayment of a loan.

Foreclosure or repossession:

The act upon which the lender will take possession and sell the property to pay off the loan in the event the borrower fails to perform the payment in terms.

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2 years ago
A rapid increase in the price of goods caused by printing too much money is called _____.
Taya2010 [7]
It’s called hyperinflation
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3 years ago
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Castillo Company has a defined benefit pension plan. At the end of the reporting year, the following data were available: beginn
Luda [366]

Answer:

$23,000

Explanation:

Before recording the journal entry, first we have to determine the pension expense amount which is shown below:

Pension expense = service cost + interest cost - expected return on plan assets

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= $13,000

Now the journal entry would be

Pension expense A/c Dr $13,000

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        To PBO A/c $23,000

(Being the annual pension cost is recorded)

All other information which is given is not relevant. Hence, ignored it

6 0
3 years ago
Reference to the economic integration of less developed nations into the structures of a world economy (World System Theory), __
kumpel [21]

Answer:

core regions

Explanation:

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Global market has decided to increase its market share by hiring a marketing rep to visit businesses in the area and invite thei
Doss [256]

In the condition given above where the global market intends to increase its market share by hiring representative for such purpose, the global market is said to be using communication strategy.

<h3>What is communication strategy?</h3>

A strategy, which is used by an organization for the purpose of interaction with the target audience of such organization, it is known as a communication strategy.

Hence, the significance of communication strategy is aforementioned.

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