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Zinaida [17]
4 years ago
13

Corporation uses the allowance method to account for uncollectible receivables. At the beginning of the​ year, Allowance for Bad

Debts had a credit balance of $1,000. During the year Beluga wrote off uncollectible receivables of $2,500. Beluga recorded Bad Debts Expense of $3,300. What is Beluga's ​year-end balance in Allowance for Bad​ Debts?
Business
1 answer:
Karo-lina-s [1.5K]4 years ago
8 0

Answer:

Beluga's ​year-end balance in Allowance for Bad​ Debts is $1800

Explanation:

Given that the beginning of the​ year, Allowance for Bad Debts had a credit balance of $1,000. During the year, Beluga wrote off uncollectible receivables of $2,500. To do this, a debit would have been passed to Bad Debts Expense and a credit to receivable.

If the Bad Debts Expense amounted to $3,300 then the additional $800 ($3,300 - $2,500) would have been as a result of additional allowances for bad debt which would have been passed as a credit to Allowance for Bad​ Debts $800 and a debit to Bad Debts Expense $800.

This would make the total debits or balance in the Bad Debts Expense to $3,300 (2500 + 800) while the balance in the Allowance for Bad​ Debts would be $1800 made up of the opening balance of $1000 and the $800 posted during the year.

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What is the goal of retailers?
Scilla [17]

Answer:

the retailer’s main function is to provide merchandise in the right quality, quantity, price, time, and at the right place. The first task that a retailer has to perform is to identify the consumer needs and wants.

Explanation:

8 0
4 years ago
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On October 1, 2022, Sheridan Company places a new asset into service. The cost of the asset is $81000 with an estimated 5-year l
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Answer:

the depreciation expense for 2022 is $3,000

Explanation:

Straight line method of depreciation charges a fixed amount of depreciation over the period of use of an asset.

Depreciation Expense = (Cost - Residual Value) / Number of useful life

                                      =  ($81000 - $21000) / 5

                                      =  $12,000

The Annual depreciation charge for this machine will be $12,000 for each of the years that it is used in the business.

However since it was paced in use during the year that is 1 October, we have to apportion the Annual charge withe number of months that its has been in use during 2022.

It has been used for 3 months thus depreciation charge is :

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8 0
3 years ago
Assuming the correlation between the annual returns on the two portfolios is indeed zero, what would be the optimal asset alloca
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Since you provide no relevant number, 

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4 0
3 years ago
A firm has $800,000 in paid-in-capital, retained earnings of $40,000 (including the current year's earnings), and $25,000 shares
vfiekz [6]

Answer:

The correct answer for option (a) is $1.6 per share and for option (b) is decrease in cash and retained earning.

Explanation:

According to the scenario, the computation for the given data are as follows:

(a) We can calculate the amount that firm can pay in cash dividend by using following formula:

Amount to pay in cash dividend = $40,000 ÷ 25,000

= $1.6 per share

(b). If the cash dividend is $0.80 per share than the cash and retained earning can be calculated as follows:

Cash and retained earning = $0.80 × 25,000 = $20,000

As $20,000 is less than previous, than it will decrease the cash and retained earning.

5 0
4 years ago
A commercial bank has excess reserves of $5000 and a required reserve ratio of 20 percent. it makes a loan of $6000 to a borrowe
diamong [38]

Answer:

The first bank will be short of reserves in the amount of $1,000

Explanation:

According to the given data, we have the following:

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The first bank will be short of reserves in the amount of $1,000

5 0
3 years ago
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