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
Xelga [282]
3 years ago
8

Sunland Company uses the percentage-of-receivables method for recording bad debt expense. The Accounts Receivable balance is $31

0000 and credit sales are $1240000. Management estimates that 6% of accounts receivable will be uncollectible. What adjusting entry will Sunland Company make if the Allowance for Doubtful Accounts has a credit balance of $3100 before adjustment?
Business
2 answers:
Alinara [238K]3 years ago
5 0

Answer: $15,500

Explanation:

First we calculate the estimated Uncollecteble debt,

= 6% of 310,000

= 0.06 (310,000)

= $18,600

We will then subtract the existing $3,100 to find out how much we will send to the Bad Debt Expense account because the amount already in the account needs to be included in the $18,600.

= 18,600 - 3,100

= $15,500

We will therefore Debit the Bad Debt Expense account with $15,500 and Credit the Allowance for Doubtful Accounts with the same amount.

If you need any clarification do react or comment.

Roman55 [17]3 years ago
5 0

Answer:

Sunland Company

The Accounts Receivable balance is $310000

Credit sales are $1240000

Bad debts 6% of accounts receivable= 6% of  $310000= $ 18600

Allowance for Doubtful Accounts has a credit balance of $3100

Required Adjustment $ 15,500

The following adjusting entry will be made.

Journal Entry

Date               Particulars                     Debit                     Credit

                     Bad Debts Expense     15,500

                    Allowance for Doubtful Debts                 15,500

You might be interested in
Because common shareholders are entitled to the profits that remain after all of a corporation's other obligations have been met
Studentka2010 [4]

Because common shareholders are entitled to the profits that remain after all of a corporation's other obligations have been met, common shareholders are known as Residual owners.

<h3>What does Shareholders means?</h3>

A shareholder (in the US frequently alluded to as investor) of a company is an individual or legitimate substance.

A body politic, a trust or organization) that is enlisted by the partnership as the lawful proprietor of portions of the offer capital of a public or confidential partnership. The impact of a shareholder on the not entirely set in stone by the shareholding rate claimed. Shareholders of a company are legitimately isolated from the actual enterprise.

They are for the most part not at risk for the organization's obligations, and the shareholders' responsibility for organization obligations is supposed to be restricted to the neglected offer cost except if a shareholder has offered ensures. The company isn't expected to record the helpful responsibility for shareholding, just the proprietor as recorded on the register.

Therefore Shareholders might have procured their portions in the essential market by buying into the Initial public offerings.

Learn more about Shareholder here:

brainly.com/question/19054394

#SPJ4

8 0
2 years ago
Finishing Touches has two classes of stock authorized: 8%, $10 par preferred, and $1 par value common. The following transaction
natita [175]

Answer:

FINISHING TOUCHES

Balance Sheet  December 31, 2015

(Stockholders’ Equity Section)

Stockholders’ equity:

Common stock  = $100,000

Preferred stock  =  $30,000

Treasury stock  = -$5,500

Additional paid-in capital  = $3,216,000

Total paid-in capital  = $3,340,500

Retained earnings  = $63,100

(Preferred stock  = -$,30,000)

Total stockholders’ equity = $3,373,600

Explanation:

a) 100,000 Common stock issued at $35 per share with $1 par is valued at $1 in the Common Stock section while the difference $34 $(35 - 1) is taken to the Additional paid-in capital at 100,000 x $34.

b) 3,000 Preferred Stock  issued at $11 per share with $10 par is valued at $10 in the Preferred Stock while the difference $1 $(11 - 10) is taken to the Additional paid-in capital at 3,000 x $1.

c) Treasury stock is the repurchase of stock by the company.  It is a contra account to the equity accounts.  It is therefore deducted from the equity section.  Two methods exist for its treatment: the cost method and the par value treatment.  We used the par value treatment.

This involves stating the par value movements in the Treasury stock while  the additional loss or additional gain is taken to the Additional Paid-in Capital section.

On the other hand, the cost method treats the cost of repurchase in the Treasury stock.

d) Additional Paid-in Capital (APIC) account records the above par value received.  It is also where the above par value is deducted for Treasury Stock.

e) Retained Earnings represent the net income after paying dividends to common stockholders and preferred stockholders.

f) To get the total stockholders' equity, the preferred stock is deducted.  Holders of preferred stock are not equity holders.

7 0
3 years ago
Suppose a retail store was offering 10% off all prices on all goods. The incentive to take advantage of the 10% savings is:_____
STALIN [3.7K]

Answer:Directly related to the list price of the good

Explanation:

6 0
3 years ago
Summarize and contrast how work-based learning benefits the following groups: students, employers, and schools
Misha Larkins [42]
Students learn about how different work places work,and about what sort of work they might enjoy. employers get to "preview" people who might make good workers when they leave school. Schools learn what workplaces are needing from students and can adjust their their curricula to be more relevant.<span />
3 0
3 years ago
When a parent uses the equity method throughout the year to account for its 80% investment in an acquired subsidiary, which of t
ValentinkaMS [17]

Answer:

c. Parent company total assets equals consolidated total assets

Explanation:

  • The equity method is a process of treating investment in an associated companies and is usually applied where the investor holds about 50% of the companies stocks and this has a significant influence in the later management.
  • They are recorded in the balance sheets and are associated with the companies net incomes and investments. If 80% of the investment is accounted for the subsidiary then the parent company total assess will not be equal o the total assets as it involves taxes.
4 0
3 years ago
Other questions:
  • Daryl enjoys his job because he gets to analyze the security systems in different organizations and provide recommendations to i
    14·2 answers
  • "Our business needs a steady supply of raw milk," said Beatrice Gomez, CEO of Bea's Ice Cream, "But Holly Dairy Farms is unable
    9·1 answer
  • If we are replacing an old vehicle with a newer model, the cost of the old vehicle is:_______.
    8·1 answer
  • For the following statement, move the endpoints of the demand curve to create the demand relationship that is described. "I spen
    10·1 answer
  • The original amount of money you deposit in a savings account is the _____.
    8·1 answer
  • Laverne purchased a new piece of equipment to be used in its new facility. The $355,000 piece of equipment was purchased with a
    10·1 answer
  • When you have been in disorganized work situations where the number of people wanting supplies is larger than the amount of supp
    15·1 answer
  • Suppose that a group of 10 people join a weight loss program for 3 months. Each person’sweight is recorded at the beginning and
    11·1 answer
  • Drag each option to the correct location on the image.
    7·1 answer
  • Which of these social sciences deals most with models of behavior rather than with thought processes?
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!