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Lostsunrise [7]
3 years ago
15

On January 1, 2018, the Accounts Receivable and the Allowance for Doubtful Accounts balances of Kendall Company were $40,000 and

$1,500 respectively. During the year 2018, the company reported $80,000 of credit sales, and collected $78,200 cash from receivables. The company also wrote off $500 of receivables as uncollectible in 2018. The company estimates that it will be unable to collect 4% of the year-end accounts receivable balance. Determine the amount of bad debts expense to be recognized in the 2018 income statement
Business
1 answer:
aivan3 [116]3 years ago
7 0

Answer:

Bad Debt Expense = $652

Explanation:

Ending balance [Un-adjusted) = Beginning balance + Credit sales - Cash collected  - Written off

Ending balance [Un-adjusted) = $40,000 + $80,000 - $78,200 - $500

Ending balance [Un-adjusted) = $41,300

Allowance For Doubtful Accounts = Beginning balance - Written off

Allowance For Doubtful Accounts = $1,500 - $500

Allowance For Doubtful Accounts = $1,000

Adjusted amount required = $41,300 × 4%

Adjusted amount required = $1,652 Credit

Un-adjusted balance available = $ 1000 Credit

Bad Debt Expense = Adjusted amount required - Un-adjusted balance available

Bad Debt Expense = $1,652 - $1,000

Bad Debt Expense = $652

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PIT_PIT [208]

Answer:

Predetermined manufacturing overhead rate= $11.15 per machine hour

Explanation:

Molding Fabrication Total

Estimated total machine-hours used 2,500 1,500 4,000

Estimated total fixed manufacturing overhead $ 14,000 $ 17,400 $ 31,400

Estimated variable manufacturing overhead per machine-hour $ 3.00 $ 3.80

<u>To calculate a single plantwide predetermined overhead rate, we need to use the following formula:</u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Total fixed overhead= $31,400

Total variable overhead= (3*2,500) + (3.8*1,500)= $13,200

Total Machine hours= 4,000

Predetermined manufacturing overhead rate= (31,400 + 13,200) / 4,000

Predetermined manufacturing overhead rate= $11.15 per machine hour

8 0
3 years ago
What is globalisation
Irina-Kira [14]
Globalization is the word used to describe the growing interdependence of the world's economies, cultures, and populations, brought about by cross-border trade in goods and services, technology, and flows of investment, people, and information
3 0
2 years ago
Dextra Computing sells merchandise for $6,000 cash on September 30 (cost of merchandise is $3,900). Dextra collects 5% sales tax
Eduardwww [97]

Answer:

1.

Sept - 30

DR Cash <u>$6,300</u>

CR Sales <u>$6,000</u>

CR Sales Tax <u>$300</u>

(<em>To record Cash sales and Tax Payable)</em>

<u>Working</u>

Sales Tax = 6,000 * 5%

= <em>$300</em>

2.

Oct - 15

DR Sales Tax Payable <u>$300</u>

CR Cash <u>$300</u>

(<em>To record remittance of Sales Tax to the State Government</em>)

3.

Sept - 30

DR Cost of Goods Sold  <u>$3,900</u>

CR Merchandise Inventory <u>$3,900</u>

(<em>To transfer inventory to Cost of Goods sold) </em>

4. <em>Repeat question for question 2.</em>

5. <em>Repeat question for question 1.</em>

8 0
3 years ago
On November 1, 2017, Austin Services issued $305,000 of five-year bonds with a stated rate of 12%. The bonds were issued at par,
sergiy2304 [10]

Answer:

$12,200

Explanation:

Calculation to determine the amount of interest expense was recorded for the period of January 1 to April 30, 2018

Interest expense=$305,000*12%*4/12

Interest expense=$12,200

Therefore the amount of interest expense was recorded for the period of January 1 to April 30, 2018 is $12,200

8 0
2 years ago
Which of the following accounts would not be included in the Acquisition and Payment for Long-Lived Assets Cycle? a. Revenue. b.
velikii [3]

Answer:

The correct answer is A

Explanation:

Acquisition and Payment Cycle, also called as the PPP cycle for which the payments, purchases and payables, is mainly comprise of the two classes of the transaction. This cycle is regarding the payables and to pay off the payables with cash.

Acquisition and payment of the long lived assets, which are those assets, the business retain for at least one year. The revenue will not be included in the cycle because it is related to the payables.

7 0
3 years ago
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