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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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What is 700 units at $6.80 value
jek_recluse [69]

Answer:

$4760

Explanation:

700 units at 6.80 value/unit

700 x 6.80

= 4760

8 0
3 years ago
This table can be used to organize Gigi’s credit card balances and payments over 6 months. The annual percentage rate on the cre
Alchen [17]

Answer:

-16.34

Explanation:

  • Disclaimer: I am not sure, sorry. It might be -16.34, 16.34, or 15.75. Once again, sorry.
8 0
2 years ago
Read 2 more answers
Serene City enacts an ordinance that bans the use of "sound amplifying systems" on public streets. Tyler wants to campaign for a
svp [43]

Available options are:

a. ​constitutional under the First Amendment.

b. ​an unconstitutional restriction of speech.

c. ​necessary to protect national interests.

d. ​justified by the need to protect individual rights

Answer:

Option A. ​Constitutional under the First Amendment.

Explanation:

The First Amendment gives several rights to the people of United which includes the freedom of religion, speech, press and filing of the petition in the courts. The court will look into the case whether or not the speech which the Tyler wants to broadcast endangers the security of United States or that the action threatens the rights of the peope (Tyler's supporters broadcast message at mid night within the city).

3 0
3 years ago
According to empirical research, in countries where stockholders' rights are strong, firms issue ____ stock than in countries wh
gavmur [86]

According to empirical research, in countries where stockholders' rights are strong, firms issue <u>More </u>stock than in countries where stockholders' rights are weak. Researchers conclude that strong stockholders' rights <u>reduce</u> moral hazard in stock markets.

<u>Explanation</u>

A <u>Moral hazard</u> is said to have occurred when one party (i.e insured Party) increases its exposure to risk  ,because some other party bears the cost of those Risk.It reflects the tendency of a person to take more risk as the consequence of the risk taken has to be beard by some other party

<u>The moral hazard problem is </u><u>less </u><u> severe in bond markets than in stock markets. In addition, moral hazard arises in bond markets when firms issue bonds with high default risk.</u>

<u />

So it is appropriate to say that , in countries where stockholders' rights are strong, firms issue <u>More </u>stock than in countries where stockholders' rights are weak. Researchers conclude that strong stockholders' rights <u>reduce</u> moral hazard in stock markets.

3 0
2 years ago
Brulee Bakery produces both regular and vegan baked goods. Each quarter, the research and development department develops a reci
erastovalidia [21]

Answer: Product-level

Explanation:

 A product level activity is one of the type of activity that are performed for the production of the various types of products and the services and then it calculating the total number of batches of the specific items or products are get sold out in the market.

According to the given question, the Brulee bakery is basically producing the various types of vegan baked and the regular items and under the activity base costing the firm is basically developing the new vegan baked recipe.

Therefore, this type of process is basically refers as the product level activity.

3 0
3 years ago
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