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Alex73 [517]
3 years ago
11

Manning Company uses the allowance method. At the end of its first year of operations, the company estimates that it will not co

llect $2,500 of its accounts receivable. Prepare the appropriate adjusting journal entry to establish the estimate for uncollectible accounts.At the end of each period, the company estimates the necessary balance in the allowance for uncollectible accounts and then records whatever adjustment to the allowance and corresponding bad debt expense is necessary to reach that balance.
Business
1 answer:
allochka39001 [22]3 years ago
5 0

Answer:

Explanation:

The adjusting entry is shown below:

Bad debt expense A/c Dr $2,500

       To Allowance for doubtful debts $2,500

(Being adjusting entry is recorded)

For passing the adjusting entry we have to debit the bad debt expense and credit the allowance for doubtful debts. As bad debt is an expense so we debited it and the allowance for doubtful debts is a contra asset so we credited it

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Isaac Inc. began operations in January 2021. For some property sales, Isaac recognizes income in the period of sale for financia
Sati [7]

Answer:

$148.3 million

Explanation:

Calculation to determine the deferred tax liability that Isaac would report in its year-end 2021 balance sheet

Using this formula

Deferred tax liability=Total future taxable income × Tax rate

Let plug in the formula

Deferred tax liability=(2022 137 million+2023 129 million+2024 162 million+2025 165 million)*25%

Deferred tax liability=$593 million*25%

Deferred tax liability=$148.3 million

Therefore the deferred tax liability that Isaac would report in its year-end 2021 balance sheet is $148.3 million

8 0
3 years ago
Which of the following is used by a seller to deceive a buyer? a. Bait and switch b. Contest c. Display d. Introductory offer Pl
Inessa [10]

That which is used by a seller to deceive a buyer is: a. Bait and switch

Bait and switch is a tactic that is used by entrepreneurs to attract customers. They tell them to purchase a good at a low price.

However, when they come to buy, they are encouraged to buy a good that costs more.

So, in this way, the bait and switch tactics is used by sellers to deceive the buyers.

Learn more about the bait and switch tactics here:

brainly.com/question/981097

3 0
2 years ago
When a commercial item is procured by the government, what will the contractor provide to the government that documents the func
Kitty [74]
<span>When a commercial item is procured by the government, the contractor will provide a </span>TDP or Technical Data Package<span> to the government</span> that documents the functional, performance, and physical characteristics of their product and will assist in the development of configuration management efforts.
4 0
3 years ago
The closing process is necessary in order to
goldfiish [28.3K]

Answer:

The closing process is necessary in order to confirm that net income or net loss and owner withdrawals for the period are closed into the owner's capital account.

Explanation:

Most economies around the world follow a specific accounting period which is commonly referred to as financial year or tax year. Before a new financial year begins, the accounts from the ongoing financial year have to be closed legitimately through a process called the 'closing process'. This process culminates in confirming that the net income secured or the net loss bore by the owner is included in no other account than the owner's capital account.

In order to carry out the closing process, the accountant has to commence with identifying the accounts that are required to be closed with or before the ending of the predefined financial period. He then has to record the last entries in these accounts as 'closing entries'. Once the accounts are closed, he has to calculate the trial balance and interpret the outcome. Closing of temporary accounts through a valid closing process dispenses the ease of calculating profit and loss in any given financial period coming to end.

5 0
3 years ago
What are the three legal forms of business organization? What are their advantages and disadvantages?
algol13

Answer:

There are three legal forms of business organization that are sole proprietorship, society and corporation.

Explanation:

<u>Sole proprietorship:</u> A company that has only one person and works for its own benefit. In almost all the world there are a large number of sole proprietorships which are usually small companies, the most common being for example a personal teacher, a bicycle workshop, etc.

Advantage:

- The owner receives all profits and profits.

- Independence

Disadvantages:

- There is unlimited liability so that all income can be used to pay debts.

- The owner performs several activities.

<u>Company</u>: company that has two or more people. In general, partnership companies are larger than sole proprietorships. The most common companies in society are finance and insurance.

Advantage:

- Raises more funds than sole proprietorship.

- Greater intelligence and administrative ability.

Disadvantages:

- The company dissolves when a partner dies.

- Difficulty to liquidate or transfer the company.

<u>Corporation</u>: The property (shares) of a corporation are its shareholders. Shareholders have profits by receiving dividends that are distributions of the earnings of the shares.

Advantage:

- They have a limited liability, they don't lose more money than they invested.

- The company has a long life.

Disadvantages:

- Higher organizational costs than in other business forms since they need to hire staff.

- Subject to greater government regulation.

4 0
3 years ago
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