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Rus_ich [418]
4 years ago
14

Diaz Company uses the allowance method to account for bad debts. They use the balance sheet approach to estimate the amount of u

ncollectible accounts.
You have been asked to assist the company in preparing the adjusting entry to record bad debts expense for the year. You review the end of the year accounting information and find the following:
Net sales for the year, $676,000. This includes $51,000 of cash sales;

Ending balance in Accounts Receivable, $110,000;

Ending balance in the Allowance for Bad Debts account, $871 (debit balance).
After discussions with company management, you determine that 3% of accounts receivable is a reasonable estimate of uncollectible accounts.Required:
Journalize the entry to record bad debts expense for the year ended December 31.
Business
1 answer:
pashok25 [27]4 years ago
5 0

Answer:

The journal entry is as follows:

(i) Bad debt expense A/c    Dr. $18,750

          To Allowance for doubtful account  $18,750

(To record the bad debts expense for the year)

Workings:

Net credit sales = Total sales - cash sales

                          = $676,000 - $51,000

                          = $625,000

Bad debt expense = 3% of $625,000

                               = $18,750

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What are complex information systems that support end-to-end business processes? Functional systems Accounting systems Enterpris
Cloud [144]

Answer:

Enterprise systems

Explanation:

Enterprise Resource planning (ERP) system has enterprise -wide integration and it is integrated end to end business departments and Business units. It interconnects different business segment or department. It helps a department / segment of business to support other departments / segments of the business.

4 0
3 years ago
The price of wine has risen from $7 to $9 per bottle and the price of cheese has fallen from $6 to $5 per pound, while Anne’s in
GuDViN [60]

Answer:

The correct answer is option C.

Explanation:

The price of wine has risen from $7 to $9 per bottle and the price of cheese has fallen from $6 to $5 per pound.

Anne’s income has stayed fixed at $46 per week.

Anne has been buying 4 bottles of wine and 2 pounds of cheese per week.

At the initial price she was spending

= ( $7\ \times\ 4)\ +\ ($6\ \times\ 2)

= $28 + $12

= $40

After the price change she has to spend

= ( $9\ \times\ 4)\ +\ ($5\ \times\ 2)

= $36 + $10

= $46

Since she has to spend more to consume the same level of output, we can say that Anne is worse off.

7 0
3 years ago
In most large cities there are a large number of bakeries. These bakeries produce similar, but not identical, products. Some bak
Kaylis [27]

Answer:

The correct answer is option A.

Explanation:

A monopolistic market is a market structure that has a large number of buyers and sellers in the market. The sellers produce heterogeneous or differentiated products which are close substitutes. There are relatively easier entry and exit in the market as compared to a monopoly market.

There is a high degree of competition in the market and the producers use an advertisement to promote their products.

4 0
4 years ago
Marbry Corporation's balance sheet and income statement appear below.
Maslowich

Answer: 382

Explanation:

8 0
3 years ago
Data were collected for a sample of 12 pharmacists to determine if years of experience and salary are related. A regression was
frutty [35]

Answer:

b. Reject the null hypothesis and we conclude that years of experience is significant in explaining pharmacists' salary

Explanation:

We are given p-value less than 0.001, which means p-value less than given level of significance or alpha value 0.05, so we reject the null hypothesis and conclude that years of experience is significant in explaining pharmacists’ salary.

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3 years ago
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