1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
slega [8]
3 years ago
6

Ayayai Corp. uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $200,

000 and credit sales are $1,000,000. Management estimates that 4% of accounts receivable will be uncollectible.
What adjusting entry will Ayayai Corp. make if the Allowance for Doubtful Accounts has a credit balance of $2,000 before adjustment?

a. Bad Debt Expense 8,000; Allowance for Doubtful Accounts8,000
b. Bad Debt Expense 6,000; Allowance for Doubtful Accounts 6,000
c. Bad Debt Expense 6,000; Accounts Receivable 6,000
d. Bad Debt Expense 8,000; Accounts Receivable 8,000
Business
1 answer:
Ket [755]3 years ago
5 0

Answer:

Option (B) is correct.

Explanation:

Amount of which adjusting entry required:

= Amount of uncollectible accounts - Balance in Allowance for uncollectible accounts

= (Balance in accounts receivable × Estimated percentage of accounts receivable to be uncollectible) - Balance in Allowance for uncollectible accounts

= ($200,000 × 4%) - $2,000

= $8,000 - $2,000

= $6,000

Therefore, the adjusting entry is as follows:

Bad debt expense A/c      Dr.  $6,000

To Allowance for uncollectible accounts    $6,000

(To record the bad debt expense)

You might be interested in
The salesperson for the Big Apple Sign Corporation was trying to get a hardware storeowner to buy a new kind of advertising tool
Mars2501 [29]

Answer:

The answer is: E) modified rebuy

Explanation:

A modified rebuy happens when a company (or an individual consumer) will buy a product or service which it has already purchased in the past. But now the company wants to change either the supplier, the product's specifications or the terms of the sale.

In this case, the store owner had already bought advertising tools before, but not this type.

6 0
3 years ago
Read 2 more answers
Explain the opportunity cost of working on a farm. ​
Liula [17]

Answer:

Opportunity cost is a useful concept when considering alternative places for using your resources and assets. ... If he/she farms the land, the opportunity cost is the income foregone by not renting it to a neighbor.

8 0
2 years ago
What is a value that can be used to ensure that hashed plaintext will not consistently result in the same digest?
ch4aika [34]
Salt is the term used in cryptography that defines a value that can be used to ensure that hashed plaintext will not consistently result in the same digest. The salt is<span>  </span>random<span> data that is used </span> to <span> defend passwords against </span>dictionary attacks<span> or against its hashed equivalent.
For each password a new salt is generated randomly.</span>
8 0
3 years ago
Which hipaa standard requires providers and their business associates to put in place policies and procedures that ensure privac
mel-nik [20]
HIPAA's Security Rule at §164.308 - Administrative safeguards starts with (a) "A covered entity or business associate must, in accordance with §164.306", and then continues to make various calls to "Implement policies and procedures" ...
Then, on the Privacy Rule, a BA is not directly required to comply with the Privacy Rule, except as specified within the Security Rule, but may be required to comply with those sections of the Privacy Rule that are specified in the contract or BAA (requirement) with its Covered Entity clients.
7 0
3 years ago
Which payment method typically charges the highest interest rates? EverFi?
Yanka [14]
A is the correct answer.
5 0
3 years ago
Read 2 more answers
Other questions:
  • Problem 16-17 Firm Value [LO2] Change Corporation expects an EBIT of $25,000 every year forever. The company currently has no de
    14·1 answer
  • How do you get the profit?
    6·1 answer
  • Sment
    7·1 answer
  • On October 28, 2013, Mercedes Company committed to a plan to sell a division that qualified as a component of the entity accordi
    5·1 answer
  • A college professor's compensation package includes the total cost of a $325-per-month health insurance plan, the total cost of
    12·2 answers
  • A company acquires a rather large investment in another corporation. What criteria determine whether the investor should apply t
    9·1 answer
  • Imagine the market for leather made basketballs. Please illustrate and specify the change in equilibrium price and quantity. (ma
    11·1 answer
  • . Identify and explain two principles for ethical accounting practice
    11·1 answer
  • What is the term that slaves used for the voyage across the atlantic?
    7·1 answer
  • In the early 2000s, easy credit made real estate the investment of choice in the United States. By the end of the decade, howeve
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!