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garik1379 [7]
3 years ago
8

A company has $102,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts

. Experience suggests that 5% of outstanding receivables are uncollectible. The current balance (before adjustments) in the allowance for doubtful accounts is a(n) $920 credit. The journal entry to record the adjustment to the allowance account includes a debit to Bad Debts Expense for:a. $4,180b. $5,054c. $5,146d. $5,100e. $6,020
Business
2 answers:
erastova [34]3 years ago
6 0

Answer:

A. $4,180

Explanation:

Desired balance in allowance account: $102,000 × 0.05 =$5,100

-Current balance in allowance account: 920 =$4,180

Journal entry

Debit to Bad Debts Expense $4,180

Credit Adjustment to allowance $4,180

bonufazy [111]3 years ago
3 0

Answer:

a. $4,180

Explanation:

Bad debt Expense will be calculated using the percentage of debt loss. The expense will be calculated using the account receivable balance.

Closing Value of the Allowance for Doubtful Accounts will be as follow

Closing Balance = $102,000 x 5% = $5,100

As Allowance for Doubtful Accounts already have credit balance of $920, we need to adjust the remainder to make the closing balance of Allowance for Doubtful Accounts $5,100 at the year end.

Adjustment Value = $5,100 - $920 = $4,180

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The correct answer is letter "C": You are usually not in charge.

Explanation:

Wage-earners are the people who live mainly thanks to the salary they receive. Under this category fall low-range workers whose base income is their source of income. Hardly ever low-range employees are assigned major tasks since they are subordinates, so the success or failure of a project does not rely directly on them since they are not the ones in charge.

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D) Legitimate power.

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Foreman has authority over it's employees that's because the employee is compelled to do as the foreman is saying.

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company pays each of its workers on a per diem basis. if another worker is​ hired, fixed costs will increase while variable cost
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A company pays each of its workers on a per diem basis. If another worker is​ hired,

variable costs will increase while

fixed cost will remain the same.

<h3>What is the difference between fixed and variable?</h3>
  • The amount of product generated determines the fluctuation in variable costs. Raw materials, labor, and commissions are examples of variable expenses. Regardless of the level of production, fixed expenses stay constant. Lease and rental payments, insurance, and interest payments are fixed costs.
  • Costs that change as the volume increases are known as variable costs. Raw materials, piece-rate labor, production supplies, commissions, shipping expenses, packing costs, and credit card fees are a few examples of variable costs. The "Cost of Goods Sold" is the name given to the variable costs of production in some accounting statements.
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A company pays each of its workers on a per diem basis. If another worker is​ hired,

variable costs will increase while

fixed cost will remain the same.

To learn more about fixed cost, refer to:

brainly.com/question/3636923

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5 0
1 year ago
On December 1, Year 1, Childe Company purchased $100,000 of bonds issued by Paperman Company at face value. The bonds mature in
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3 years ago
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Because Mark (buyer) requested for the exact type of wood that can resist wood decay caused due to the damp environment of his cabin and Tony (seller) sells Mark lumber while assuring him that it's what he is looking for. Tony's assurance to Mark is known as the Implied warranty of fitness for a particular purpose, and since the wood is affected by dampness and caves then Tony has explicitly breached the warranty.

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