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Lady bird [3.3K]
3 years ago
15

Determine the amount to be added to Allowance for Doubtful Accounts in each of the following cases:

Business
1 answer:
GuDViN [60]3 years ago
8 0

Answer: a. $22,000

b. $16,000

Explanation:

The amount to be added to Allowance for Doubtful Accounts in each of the following cases are:

a. Balance of $3,000 in the allowance account just prior to adjustment. Analysis of accounts receivable indicates doubtful accounts of $25,000.

The amount to be added to the allowance for doubtful accounts will be doubtful accounts of $25,000 minus the balance of $3,000 in the allowance account just prior to adjustment. This will be:

= $25,000 - $3000

= $22000

b. Balance of $500 in the allowance account just prior to adjustment. Uncollectibles are estimated at 2% of sales, which totaled $800,000 for the year.

The amount to be added to the allowance for doubtful accounts will be:

= 2% of $800,000

= 2/100 × $800,000

= 0.02 × $800,000

= $16,000

You might be interested in
The marginal propensity to save is 0.2. equilibrium gdp will decrease by $50 billion if the aggregate expenditures schedule decr
s344n2d4d5 [400]

The marginal propensity to save is 0.2. equilibrium gdp will decrease by $50 billion if the aggregate expenditures schedule decreases by:$10 billion.

<h3>Aggregate expenditures schedule</h3>

Using this formula

Aggregate expenditures schedule=Marginal propensity to save×Equilibrium gdp

Where:

Marginal propensity to save=0.2

Equilibrium gdp=$50 billion

Let plug in the formula

Aggregate expenditures schedule=0.2×$50 billion

Aggregate expenditures schedule=$10 billion

Therefore the marginal propensity to save is 0.2. equilibrium gdp will decrease by $50 billion if the aggregate expenditures schedule decreases by:$10 billion.

Learn more about Aggregate expenditures schedule here:brainly.com/question/13117251

#SPJ1

3 0
2 years ago
Allegheny Company ended Year 1 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $70,000 and $3,600, r
tatyana61 [14]

Answer:

Uncollectible account expense  $8,600

Explanation:

The computation of the amount as the Uncollectible Accounts Expense on its Year 2 income statement is given below:

Allowance account - Beg year 2    $3,600 Credit

Written off account   $6,600    Debited by

 Unadjusted balance in Allowance account  $3000  Debit

Adjusted balance required in Allowance account  $5,600  Credit

Uncollectible account expense  $8,600

6 0
3 years ago
The firm receives an average of $20,000 in checks per day. The weighted average delay in clearing the checks received is 3 days.
katrin [286]

Answer:

<u>$26000</u>

Explanation:

from the question;

check per day; 20000

delay: 3 days

checks to pay suppliers; 17000

clearing time 2 days

<u>we first calculate collection flaot:</u>

collection flaot = average amount of check x outstanding days

= 20000 x 3

= 60000

now we have to calculate <u>disbursements float:</u>

average amount of check x days to clear

= 17000 x 2

= 34000

with these two values we can get the net float

= collection flaot - disbursements float

= 60000 - 34000

= <u>$26000</u>

5 0
4 years ago
The following inventory was available for sale during the year for Thomasina Tools:
GaryK [48]

Answer:

B. $3,300

Explanation:

The computation of the ending inventory using the FIFO method is shown below:

Since there are 25 units in hand at the end of the year

Out of which 20 units are taken from third purchased at $130 and the rest 5 units are considered for $140

So,

= 20 units × $130 + 5 units  × $140

= $2,600 + $700

= $3,300

Hence, the second option is correct

7 0
3 years ago
Fruit preservation is he most important process for fruit grower. Give reason​
BlackZzzverrR [31]

Answer:

Fruits and vegetables are produced seasonally, but the market requires products throughout the year. For many decades, this problem of matching product availability with consumer demand was solved in two ways:

Selling fresh products during harvest and shortly thereafter

Processing the rest to meet demand during the rest of the year

Explanation:

4 0
3 years ago
Read 2 more answers
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