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
posledela
3 years ago
6

Sage, Inc. had net sales in 2017 of $1,432,200. At December 31, 2017, before adjusting entries, the balances in selected account

s were Accounts Receivable $325,000 debit, and Allowance for Doubtful Accounts $3,000 credit. If Sage estimates that 8% of its receivables will prove to be uncollectible.
Prepare the December 31, 2017, journal entry to record bad debt expense.
Business
1 answer:
Serjik [45]3 years ago
4 0

Answer:

Debit Bad debts expense $23,000

Credit Allowance for Doubtful Accounts $23,000

Explanation:

At December 31, 2017,

Bad debts is estimated:

8% x $325,000 = $26,000

Before adjusting, Allowance for Doubtful Accounts $3,000 credit. The company use aging method to estimate bad debts expense and Allowance for Doubtful Accounts. Bad debts expense amount will be record:

$26,000 - $3,000 = $23,000

The Journal entry:

Debit Bad debts expense $23,000

Credit Allowance for Doubtful Accounts $23,000

You might be interested in
A bank has excess reserves of $1,000,000 and makes a new loan for $500,000. If the bank faces a 10% required reserve ratio, by h
lianna [129]

Answer:

Money supply increase=500000/10%=5000000

Explanation:

3 0
3 years ago
Zurasky Corporation is considering two alternatives: A and B. Costs associated with the alternatives are listed below: Alternati
vichka [17]

Answer:

Differential cost of Alternative B over Alternative A=$61,600

Explanation:

Differential Cost:

It is the difference in costs if there are more than one alternatives and one alternative is chosen while rejecting the other alternatives.

In order to calculate the differential cost of Alternative B over Alternative A, including all of the relevant costs we first calculate the total cost of both alternatives and then tae the difference.

Total Of Alternative A=Material Cost+Processing Cost+Equipment Rental+occupancy costs.

Total Of Alternative A=$28000+$34000+$11000+$19500=$92,500

Total Of Alternative B=Material Cost+Processing Cost+Equipment Rental+occupancy costs.

Total Of Alternative B=$64000+$34000+$28500+$27600=$154,100

Differential cost of Alternative B over Alternative A=Total Of Alternative B-Total Of Alternative A

Differential cost of Alternative B over Alternative A=$154,100-$92,500

Differential cost of Alternative B over Alternative A=$61,600

5 0
3 years ago
Suppose the supply and demand for a certain textbook are given by ​supply: p equals one fourth q squared comma ​demand: p equals
Llana [10]

Answer:

the demand quantity and the supply quantity at a price of ​$15 is 8 units

Explanation:

Supply, P = 1/4 Q²

Demand, P = - 1/4 Q²+30

If P = 15

Quantity Demanded will be 15 = -0.25Q²+30;

if we move 30 across the equality sign.

Therefore -0.25Q²=-15; divide both sides by -0.25;

Q² = 60, Q = 7.746, approximately 8 units

Quantity Supplied will be 15 =  1/4 Q², dividing both sides by 1/4

Q² = 60, Q = 7.746, approximately 8.

6 0
3 years ago
Read 2 more answers
Apple Inc. is the number one online music retailer through its iTunes music store. Apple sells iTunes gift cards in $15, $25, an
trapecia [35]

Answer:

cash             20,000,000 debit

     unearned revenue        20,000,000 credit

Explanation:

Record the advance collection of $20 million for iTunes gift card.

When a gift card is sold, Apple Inc assume the obligation of latter provide iTunes in the near future or do  cash reimbursement therefore; this isn't revenue. It is a liability. Apple will generate revenue when the gift ard are redeem not at sale.

7 0
3 years ago
Ashton is an investor looking at the income statements of two different companies. The first company has a very detailed income
Drupady [299]

Answer:

The first company with detailed information.

Explanation:

Financial statements show the financial position of a company at a particular period in time. The various types are balance sheet, income statement, and cash flow statement.

The income statement shows more clearly value of the company.

When Ashton is studying the income statement, he will need as much detail as possible so that he can make informed decision to invest.

The company with detailed income statement will be a better option. The company with condensed income statement will most likely not reveal some important information that will present itself as an unpleasant surprise in the future.

7 0
3 years ago
Other questions:
  • Shelly is looking at the life insurance policies listed in the table below. Which insurance company provides the most coverage p
    7·1 answer
  • GDP would include all of the following except:
    5·1 answer
  • Lake City Plastics currently produces plastic plates and silverware. The company is considering expanding its product offerings
    15·1 answer
  • If the dollar buys fewer bananas in Guatemala than in Honduras, then traders could make a profit by a. buying bananas in Hondura
    7·2 answers
  • Cash Now Industries just hired 500 new workers to build ATMs and self-service check-out systems at its manufacturing plant in Te
    8·1 answer
  • The belief that the money supply is the most important factor in macroeconomic performance is _____.
    5·1 answer
  • Which of the following employees is most likely to be a hub? Multiple Choice Before his next project starts, Joseph wants his bo
    12·1 answer
  • Spud, Inc. a manufacturer of gourmet potato chips, employs activity-based costing. The budgeted data for each of the activity co
    9·1 answer
  • What is one benefit of purchasing saving bonds?
    11·2 answers
  • The Mighty Music Company produces and sells a desktop speaker for $100. The company has the capacity to produce 50,000 speakers
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!