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Bas_tet [7]
3 years ago
12

Credit Losses Based on Credit Sales Lewis Company uses the allowance method for recording its expected credit losses. It estimat

es credit losses at 5% of credit sales which were $900,000 during the year. On December 31, the Accounts Receivable balance was $150,000 and the Allowance for Doubtful Accounts had a credit balance of $20,200 before adjustment. a. Prepare the adjusting entry to record the credit losses for the year
Business
1 answer:
ASHA 777 [7]3 years ago
4 0

Answer:

Explanation:

The adjusting entry to record the credit losses is shown below:

Bad debt expense A/c Dr $45,000

       To Allowance for doubtful debts $45,000

(Being bad debt is recorded)

The credit loss computation is shown below:

= Credit sales × estimated percentage

= $900,000 × 5%

= $45,000

For recording this transaction, we debited the expense account and credited the contra asset account.

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Sina looks over annual performance evaluations for all employees in the sales department. Based on their​ performance, she deter
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Answer:

Sina looks over annual performance evaluations for all employees in the sales department. Based on their​ performance, she determines who is eligible for​ merit-based salary increases. Sina belongs to the​ human resources work group.

Option E is the correct answer.

Explanation:

Option E is the correct answer, the reason being that the human resources department supervises all the employees' performance and incentive associated matters.

8 0
3 years ago
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Lots of writers have written good stuff other than books, like stuff for movies. which is the best way to revise the sentence to
Lera25 [3.4K]
<span>In revising the sentence at hand, the best way to do so would be as follows. Many writers and authors have written prominent pieces of literature other than merely novels, some of which including the script and text for various movies and other similar pieces of content.</span>
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4 years ago
The unadjusted trial balance for Sierra Corp. is shown below.
Fiesta28 [93]

Answer:

1. Dr Cost of goods manufactured 2000

             Cr    supplies                             2000

2.Dr  Insurance expense  100

           Cr    Prepaid insurance     100

3. Dr Depreciation expense  75

              Cr  Accumulated depreciation   75

4. Dr unearned revenue  800

                Cr   service income      800

5. Dr Account receivable 280

               Cr     Service revenue    280

6. Dr Interest expense    70

             Cr  Interest payable     70

7. Dr Salaries expense    1400

                Cr Salaries payable   1400

Explanation:

1. At the end of reporting 500 supplies were at hand (2500-500)= 2000 used and closes in to cost of goods manufactured.

2.Prepaid insurance was 600 and expires 100 of the month.(600-100)=500 will be prepaid.

4. Revenue is earned which was unearned and collection was recorded and liability created of that amount,this is done because of matching principle.

4 0
3 years ago
In terms of foodservice layout design, a ‘work station’ is a small area at the back of the dock
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This statement is false. A work station is a space planned for a specific set of tasks.
8 0
4 years ago
Baldwin Company had 40,000 shares of common stock outstanding on January 1, 2018. On April 1, 2018, the company issued 20,000 sh
Sindrei [870]

Answer:

$56,667

Explanation:

Diluted EPS is a measure used to assess the quality of a company's earnings per share (EPS). Diluted EPS takes into calculation all convertible securities such as convertible bonds or convertible preferred stock, which are changed into equity or common stock.

The stock options have a value of (10,000 × $10)/$12 = $8,333 on conversion.

To calculate the Diluted Earnings per share,

40,000 + (20,000 × 9/12) + (10,000 - 8,333) = $56,667.

7 0
4 years ago
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