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Westkost [7]
3 years ago
5

In 2013, Chandler Company had net credit sales of $1,125,000. On January 1, 2013, Allowance for Doubtful Accounts had a credit b

alance of $27,000. During 2013, $42,000 of uncollectible accounts receivable were written off. Past experience indicates that the allowance should be 10% of the balance in receivables (percentage of receivables basis). If the accounts receivable balance at December 31 was $330,000, what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2013
Business
1 answer:
mezya [45]3 years ago
3 0

Answer:

Debit : Bad Debts = $33,000

Credit : Allowance for doubtful debts = $33,000

Explanation:

The question states that the allowance for doubtful debts are expected to be 10% of the accounts receivables. As at 31 December, accounts receivables is $330,000

This means that the allowance for doubtful debts is it is: $330,000 x 10%= $33,000

An account for allowance for doubtful debts is a contra account created, predicting that certain debtors will not be able to pay for the goods and services they purchased. The 10% may be based on historical experiences. Doubtful debts aren’t officially uncollectible, it is simply an estimation made, but bad debts are, where you have officially written off a certain accounts receivable as uncollectible.

An allowance for doubtful debts is recorded in the balance sheet, directly under accounts receivables. Bad debts are recorded as an expense in the income statement.

The entry to record the above transaction is:

Debit : Bad Debts = $33,000

Credit : Allowance for doubtful debts = $33,000

When the amount is officially declared uncollectible, the allowance for doubtful debts account will be debited and the accounts receivables account will be credited.

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zalisa [80]

Answer:

Hie, the information you have provided is incomplete.

However important information is explained as follows :

To calculate Break - even Point use the formula;

Break even Point (units) = Total Budgeted Fixed Costs / Contribution per unit

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Contribution is Calculated as :

Sales : No information                                xxxx

Less Variable Costs ( Materials + Labor) $11,49

Contribution per unit                                   xxxx

8 0
3 years ago
What is the typical relationship between time and interest rate?
lilavasa [31]
The answer is they seem to go together, since as time passes, the higher the interest rates grow or vice versa, while time passes interest rates may fall as well, but commonly, as time passes, so does interest rates rise. This reactions may be seen in huge companies or organizations that have invested huge amounts of money that have grown overtime
3 0
3 years ago
All the following are examples of start-up costs EXCEPT
Zolol [24]

Answer:

A . payroll taxes.

Explanation:

Payroll taxes are imposed on the employers or employees of the company. In the examples of the question, the costs except for the payroll taxes are all paid by the company. Besides, payroll taxes are also not taxed on the company instead of on the employees' wages, which is funded by them. That is why all the examples are start-up costs except the payroll taxes

6 0
3 years ago
Supply chain management refers to A. how the firm compensates the employees who work on the​ firm's internal stages of productio
scoundrel [369]

Answer:

B. the decisions around which stages of production to handle internally and which to buy from others.

Explanation:

Supply chain management is fundamentally concerning with the management of a firm's reception of inputs in order to produce output, and with a firm's delivery of those outputs to the final customer.

For example, some firms can have the capability to supply their own raw materials internally, transform them into a finished product, and send the products to the customer.

Other firms have more complicated supply chains: they may buy the raw materials, produce a part of the good in a place, another part in another place, and hire another company to make the deliveries.

3 0
3 years ago
Boone Co.'s sales, based on past experience, are 20% cash and 80% credit. Credit sales are typically collected as follows: 40% i
Tamiku [17]

Answer:

$135,260

Explanation:

Remember to follow the cash collection history to determine the budgeted cash receipts for January.

Budgeted cash receipts for January

January Cash Sales $113,000 x 20%                     $22,600

January Credit Sales $113,000 x 80% x 40 %        $36,160

December Credit Sales ($73,500 - $27,000)       $46,500

November Credit Sales                                          $27,000

Total                                                                       $135,260

Therefore,

Boone Co.'s budgeted cash receipts for January is $135,260

7 0
2 years ago
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