1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Sav [38]
3 years ago
14

Johnson Company uses the allowance method to account for uncollectible accounts receivable. Bad debt expense is established as a

percentage of credit sales. For 2018, net credit sales totaled $5,800,000, and the estimated bad debt percentage is 1.40%. The allowance for uncollectible accounts had a credit balance of $55,000 at the beginning of 2018 and $46,500, after adjusting entries, at the end of 2018. Required: 1. What is bad debt expense for 2018 as a percent of net credit sales
Business
1 answer:
vredina [299]3 years ago
6 0

Answer:

Bad debt expense for 2018 is $81,200

Explanation:

2018 net credit sales = $5,800,000

Estimated bad debt percentage = 1.40%.

The allowance for uncollectible accounts had a credit balance of $55,000 at the beginning of 2018 and $46,500, after adjusting entries, at the end of 2018.

Bad debt expense = Estimated bad debt percentage × net credit sales

= 1.40% × $5,800,000

= $ 81,200

You might be interested in
In the current year, Oriole Corporation donated a painting worth $30,000 to the Texas Art Museum, a qualified charity. The museu
n200080 [17]

Answer:

$30,000

Explanation:

Oriole Corporation purchased the painting five years ago for $10,000. In the current year, the cost of the same painting is $30,000. Oriole Corporation donated this painting to the Texas Art Museum.

So, Oriole’s charitable contribution deduction is <u>$30,000</u> as the current value of the painting is $30,000.

6 0
3 years ago
What do people purchase as a form of risk management to protect themselves from losing a lot of money in the event something hap
MaRussiya [10]
They purchase insurance.
6 0
3 years ago
Read 2 more answers
Which of the following describes the effect of the business cycle on the inflation rate and the unemployment rate? A. The unempl
Pani-rosa [81]

Answer:

The correct answer are option D for both questions.

Explanation:

Recessions is characterized with decrease in consumer and investment spending. During recessions there is a decline in inflation rate and the unemployment rate increases.

While during expansion, there is a boost in economy. So, with increase in investment and production, the unemployment rate falls. There is a rise in inflation rate as well.

Though even in the stages of recovery, the unemployment rate continues to increase because some firms are pessimistic and are operating below their capacity. Also, the rate of growth of labor force is higher than rate of employment growth, which leads to increase in unemployment.  

7 0
3 years ago
Read 2 more answers
Linnea contracts to buy Harriette's farm for $300,000 and puts $20,000 down. Then Linnea learns she is allergic to hay and repud
denpristay [2]

Answer:

B) keep $10,000 of Linnea's down payment.

Explanation:

Since Linnea repudiated the contract, it is considered a breach. Therefore, Harriette is entitled to compensatory damages for the breach of the contract. Compensatory damages only cover the lost revenue from the contract, so if Harriette was able to sell her farm and only lost $10,000 due to Linnea's breach, then she must return the difference = $20,000 - $10,000 (lost) = $10,000.

8 0
3 years ago
Playful Pens, Inc., makes a single model of a pen. The cartridge for the pen (which contains the ink) is manufactured on one mac
Elan Coil [88]

Answer:

a) B. Machine 2

b) $220,000

b-2) Yes , positive differential profit.

c-1) $162,000

c-2) Yes , positive differential profit.

Explanation:

B) Differential revenues  = $10.40 x 200,000 = $2,080,000

Differential costs:

Variable cost on new production = $5.20 x 200,000 = $1,040,000

Fixed costs = $820,000

differential profit = $2,080,000 - $1,040,000 - $820,000 = $220,000

c) Differential revenues  = $10.40 x 100,000 = $1,040,000

Differential costs:

Variable cost increase on current production = ($4.62 - $4.10) x 800,000 = $416,000

Variable cost on new production = $4.62 x 100,000 = $462,000

differential profit = $1,040,000 - $878,000 = $162,000

5 0
3 years ago
Other questions:
  • How do your financial choices impact the economy? Trace the impact of your financial decisions.
    15·1 answer
  • Raj has been reviewing copies of medical records of patients from his clinic to see if he can identify any opportunities for qua
    8·1 answer
  • 1. Which country has the comparative advantage in DVDs? (Remember! OOO Output –Other goes Over!) [2 pts]
    14·2 answers
  • Joe spends $20,000 during his two semesters in college on rent, food, books, tuition, and entertainment. Joe’s opportunity cost
    10·1 answer
  • If the interest rate is 8%, what is the 4-year discount factor? What is the 4-year annuity factor? What is the relationship betw
    5·1 answer
  • As a gardener, Joey earns $19.20 per hour. He earns double time for work on Saturdays. Last week, he worked 25 regular hours plu
    6·1 answer
  • The _________ is the most commonly used type of lineup in police departments. these types of lineup are advantageous in that the
    7·1 answer
  • Maxwell Washington's weekly gross earnings for the week ending March 9 were $2,620, and her federal income tax withholding was $
    12·1 answer
  • How do you wheeze?becasue im lost
    9·1 answer
  • Which type of investment works by taking investors’ money, investing that collective money in stocks, bonds, and other investmen
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!