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
loris [4]
2 years ago
10

Douglas International consistently estimated its bad debt expense at 2 percent of credit sales. In 2020, however, Douglas determ

ines that it should revise downward the estimate of bad debts for the current year’s credit sales to 1.5 percent. Douglas uses the revised estimate of 1.5% and calculates bad debt expense of $420,000. How is the change in the estimated bad debt expense reported in Douglas’ 2020 financial statements?
Business
1 answer:
Anastaziya [24]2 years ago
4 0

Answer: $420,000 of expense in the income statement as an ordinary item. Douglas’ accounts for this change in estimate in the period of change by reporting the newly calculated amount of bad debt expense as an ordinary item of income. Changes in estimate are not considered an extraordinary item, an error correction, or a change in accounting principle.

You might be interested in
Crane Enterprises reported cost of goods sold for 2020 of $1,290,700 and retained earnings of $4,708,100 at December 31, 2020. C
Grace [21]

Answer:

  • Adjusted Cost of Goods sold = $1,206,860
  • Adjusted Retained Earnings = $4,675,190

Explanation:

An overstated opening inventory would overstate Cost of Goods sold. The overstatement should therefore be removed from the Cost of goods sold.

An overstated closing inventory would understate Cost of Goods sold. The overstatement should therefore be added to the Cost of Goods sold.

Adjusted Cost of Goods sold 2020 = Cost of Goods sold + 2020 ending inventory - 2019 opening inventory

= 1,290,700 + 32,910 - 116,750

= $1,206,860

Adjusted Retained earnings

The retained earnings would have to be adjusted for the overstatement of the current inventory by $32,910 because this understated Cost of Goods sold.

= Retained earnings - Overstatement of inventory

= 4,708,100 - 32,910

= $4,675,190

8 0
2 years ago
What key stage involves defining your project? a. Representing your data in a trustworthy manner b. Working with data c. Develop
STatiana [176]

Answer:

The correct answer is letter "C": Developing your design solution.

Explanation:

Every project borns with the idea of <em>finding a solution</em> to a problematic situation. While designing a project coming up with what the solution is for the problem that you would like to attempt solving is vital because from there part all the steps on what and how it is going to be done.

7 0
3 years ago
Customer World provides services to customers and allows customers to pay by credit card. On Thursday, a customer purchased a ca
Triss [41]

Answer:

The answer is $1.55

Explanation:

From the question above, we have the following:

Money spent by customer = $65

Transaction fee = $0.25

Percentage charge = 2% of the total charge

We calculate the total transaction fee as follows:

2% of $65 will be = 0.02 X $65

=> $1.3

Recall that there is a transaction fee = $0.25.

Therefore, total transaction fee:

$1.3 + $0.25

=> $1.55

6 0
2 years ago
Which of the following would cause demand-
gayaneshka [121]

Answer: c

Explanation:

6 0
3 years ago
Imagine an influential new study shows that eating eggs drastically reduces the risk
sweet-ann [11.9K]
The correct answer would be d
3 0
1 year ago
Other questions:
  • Full-Sole Shoes concludes a counterpurchase agreement with Japan for which it receives some counterpurchase credits. Full-Sole S
    8·1 answer
  • The stockholders equity section of Martino Inc. at the beginning of the current year appears below.Common stock, $10 par value,
    15·1 answer
  • Assume the U.S. interest rate is 7.5 percent, the New Zealand interest rate is 6.5 percent, the spot rate of the NZ$ is $.52, an
    5·1 answer
  • UNEVEN CASH FLOW STREAM
    14·1 answer
  • If Track Changes is used in a document, what steps are critical to perform before sharing the final version of a document?
    14·2 answers
  • If you encounter a process that has limited flexibility, shorter lead times, and cheaper products, customization most likely is
    11·1 answer
  • Wildhorse, Inc., a resort management company, is refurbishing one of its hotels at a cost of $6,336,382. Management expects that
    12·1 answer
  • A firm is choosing between two machines. Machine X has a first cost of $5,000 and a useful life of 5 years. Machine Y has a firs
    13·1 answer
  • What is the simplest form of automation?
    14·1 answer
  • In a natural-language processing (nlp) system, the _____ activity involves accepting human language as input, carrying out the c
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!