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
dsp73
3 years ago
13

On December 31, 2019 a company’s Accounts Receivable balance was $440,000. During the year the company recorded credit sales of

$770,000 and cash collections of $820,000. In addition, the company wrote off $16,000 of accounts as uncollectible and reinstated and collected on an accounts receivable that was previously written off that totaled $3,000. The company uses the allowance method to account for its receivables.What is the effect of the accounting equation if the company fails to make the adjusting entry to record bad debt expense?

Business
1 answer:
Semenov [28]3 years ago
6 0

Answer: Option C - Assets are Overstated; No effects on liabilities: Equity is Overstated

Explanation:

When Bad debts are recorded, they will reduce the Accounts Receivable account because less money will be expected from debtors. Accounts Receivable is an asset account so it will be Overstated if bad debts are not recorded.

Equity will also be overstated because bad debts is an expense that is sent to the Income statement. If this expense is not deducted, the net income will be larger than it should be and when added to Equity it will overstate it.

You might be interested in
Last quarter, RP Enterprises earned $220,000 in sales revenue and had $90,000 cost of goods sold (at standard). RP also experien
Rudik [331]

Answer:

Gross profit= 131,500

Explanation:

Giving the following information:

Last quarter, RP Enterprises earned $220,000 in sales revenue and had $90,000 cost of goods sold (at standard). RP also experienced these variances: Materials price: $2,400 F Materials quantity: $1,400 U Labor price: $2,000 U Labor quantity: $1,000 F Overhead: $1,500 F

To calculate the cost of goods sold, we use actaul costs and quantity of direct labor and direct materials. Therefore, the only estimated cost is overhead.

Gross profit= 220,000 - 90,000 + 1,500= 131,500

4 0
3 years ago
Amy is a current shareholder of DJ Industries. She has been given the right to purchase an additional 25 shares of DJ Industries
jasenka [17]

Answer:

stock warrant

Explanation:

Amy was given a stock warrant which gives her the right to purchase a specific number of stocks (25 stocks) at a specific price ($32) during a specific time period (12 months). Stock warrants are issued directly by the corporation to the stockholders. Stock warrants are also tradable, so Amy can choose to sell them to another investor.

7 0
3 years ago
Howard ​Services, Inc., has $ 8 comma 600 cash on hand on January 1. The company requires a minimum cash balance of $ 7 comma 60
skad [1K]

Answer:

The amount of cash to be borrowed = $18,040

Explanation:

The cash budget shows the expected cash payments and expected cash receipts and cash balance at the end of a particular period.

Note that in the cash budget only items of the cash are considered, therefore items like depreciation, amortization of intangible assets and apportionment of fixed costs are not included because they are not cash based.

The balance at the end = opening cash balance + cash receipts -cash payment  

Applying this to Howard ​Services, Inc.

The amount of cash to be borrowed = Minimum cash balance required - Net cash balance

DATA

Opening cash balance - 8600

Cash receipts- 548,570

Cash payment - 567,610

Net cash balance = 8600 + 548,570 - 567,610 = (10,440)

The amount of cash to be borrowed = 7,600 - (10,440)

                                                               =7,600+10,440=18040

The amount of cash to be borrowed = $18,040

<em>Note a negative amount of 10,400 would mean that that would be first borrowed to balance the deficit, and to take the balance to the minimum required cash balance, an addition 7,600 would need to be borrowed</em>.

6 0
3 years ago
If 20,000 worker-hours produced a total output of $600,000 in an economy, then the labor productivity is
cupoosta [38]

Answer:20 per hours Explanation:

6 0
3 years ago
How do I make quick money as a 13 year.old with no alouence.
Katena32 [7]
You can sell candy and send out flyers
3 0
3 years ago
Other questions:
  • Select the appropriate response tim is confined to a nursing home but doesn't have a terminal illness. which life insurance ride
    7·1 answer
  • Money managers:
    15·2 answers
  • ​Let's assume that a carpenter borrowed ​$2 comma 000 to be paid off in a year to finance a machine that would make him work fas
    7·1 answer
  • After a retiring from a successful business​ career, you would like to make a donation to your university. This donation will go
    9·1 answer
  • The most common occupational frauds in small businesses involve employees doing all of the following EXCEPT______________.a. ski
    5·1 answer
  • You've joined a startup company. before building out your content strategy, you'll need to develop your company's primary buyer
    11·1 answer
  • If the house you are looking at currently costs ​$160 comma 000 and is expected to increase in value each year at a rate of 3 ​p
    12·1 answer
  • Here are three things you could do if you do not attend your economics class: go to a free outdoor yoga class with some friends
    8·1 answer
  • Carolyn wants to work as a manager. The position she is hoping to be hired for requires a doctorate degree. For what type of pos
    10·1 answer
  • A professional sports team that earns more annual revenue than a small-market team is a _____________, fill in the blank,.
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!