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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

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2 years ago
Suppose you deposit ​$ cash into your checking account. By how much will the total money supply increase as a result when the re
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Answer:

If the required reserve ratio is 0, that means that the money multiplier will be infinite. I guess the question is incomplete.

I looked for similar questions to fill in the blanks:

If you deposit $2,400 and the required reserve ratio is 0.4, then by how much does the money supply increase?

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to determine the total effect on the money supply we just multiply the deposit by the multiplier = $2,400 x 2.5 = $6,000 increase.

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2 years ago
Suppose that a large lake in the middle of Minnesota evaporates, leaving more fertile farm land for growing corn available. Assu
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Wages would fall as the number of workers available grows. Landowners in Louisiana will earn more rent as the demand for land increases.

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7 0
1 year ago
If a check correctly written and paid by the bank for $408 is incorrectly recorded on the company's books for $480, the appropri
vodka [1.7K]

Answer:

The correct answer is add $72 to the book's balance.

Explanation:

Bank reconciliation is a way of identifying discrepancies between the cash book balance (company's books) and the bank balance (balance per bank statement). The discrepancies can be as a result of erroneous posting, deposit in transit, outstanding checks, etc.

In the instance of the question, there was an erroneous posting in the cash book of $72 ($480 - $408). Instead of crediting cash book by $408, it was rather credited by $480 - meaning that the credit was overstated by $72. <em>To correct this erroneous posting, we have to add back $72 to the cash book balance.</em>

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3 years ago
Data from the financial statements of Dils Brothers Co. and J. Cox, Inc. are presented below (in millions): Dils Brothers Co. J.
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Answer:

0.64

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For J.Cox Inc 2016;  Debts to total asset ratio = $47,422 / 73,744

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Debts to total asset ratio = 0.64

2016 debt-to-total-assets ratio for J. Cox, Inc. is 0.64

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2 years ago
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