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
Darya [45]
3 years ago
11

Over the past five years, a company had average annual credit sales of $320,000 and this year had write-offs of $2,000. Credit s

ales in the current year are $300,000. The balance in the Allowance for Doubtful Accounts is a $500 credit. Using the percentage of credit sales method and an estimate of 1%, what amount should the company record as an estimate of bad debt expense
Business
1 answer:
Zielflug [23.3K]3 years ago
7 0

Answer:

$2,500

Explanation:

Bad debt Expense will be calculated using the percentage of debt loss. The expense will be calculated using the account receivable balance.

Estimated allowance for doubtful accounts = Credit Sales x percentage = $300,000 x 1% = $3,000

Current Balance = $500 credit

As Allowance for Doubtful Accounts already have credit balance of $500, we need to adjust the remainder to make the closing balance of Allowance for Doubtful Accounts $3,000 at the year end.

Adjustment Value = $3,000 - $500 = $2,500

You might be interested in
You and your friends have decided to build a skateboard ramp behind your house. You have already purchased $500 in materials and
Rufina [12.5K]

Answer:

Hand saw is cheaper.

Explanation:

Given:

Material cost = $500

Electric saw cost rent per hour = $20

Building hour from electric saw = 6 hour

Building hour from hand saw = 15 hour

Time off pay from job = $8/hour

Computation of total cost from Electric saw :

Total cost from Electric saw = Material cost + Renting cost of electric saw + Time of from job

Total cost from Electric saw = $500 + (6 × $20) + (6 × $8)

Total cost from Electric saw = $500 + $120 + $48

Total cost from Electric saw = $668

Computation of total cost from hand saw :

Total cost from hand saw = Material cost + Time of from job

Total cost from hand saw = $500 + (15 × $8)

Total cost from hand saw = $500 + $120

Total cost from hand saw = $620

Hand saw is cheaper.

5 0
2 years ago
How can a nation improve its business climate?
Zarrin [17]
Reduce interest rates to make it easier for businesses to obtain new loans and expand commerce. Also, create tax inventives for desired business that would benefit say a nation that is on a coastal waterway. Offerring a reduction in taxes paid by corporations that import and export goods and services. This attracting more business.
5 0
3 years ago
Read 2 more answers
What is the primary purpose of a mission statement
Alex17521 [72]
The mission statement<span> should guide the actions of an organization, spell out its overall goal, provide a path, and guide decision-making. It provides "the framework or context within which the company's strategies are formulated". It is like a goal for what a company wants to do for the world.</span>
6 0
3 years ago
After graduation, you face a choice. you can work for a multinational consulting firm and earn a starting salary (benefits inclu
Wittaler [7]

Answer: Accounting profit= $44,500

Economic Profit = $4,150

Explanation: <em>Accounting profit</em> are the profit earned by subtracting explicit cost from the total revenue earned.

Accounting profit = Revenue - Explicit cost

<em>Economic profit</em> are profits lefts out after subtracting implicit (opportunity) cost and explicit ( monetary) costs. It is given by

Economic profit = Revenue - Explicit cost - Implicit Cost

In this case, the explicit cost include rental cost, office supplies, office staff and telephone expenses.

While, implicit cost include the 7% interest foregone on the $5000 savings and the salary foregone ($40,000) by choosing to startup a business than take up the job.

3 0
3 years ago
Accountant's define and understand Receivables:
den301095 [7]

Answer:

The answer is E.

Explanation:

Account Receivables is the type of account that is used to record expected money from the sale of goods on credit. Account receivables is an asset to the company because future economic benefits are expected to flow to the entity. It includes all forms of receivables.

Accounts receivables is being measured at cash net realizable value.

8 0
3 years ago
Read 2 more answers
Other questions:
  • Scenario 15-6 The concert promoters of a heavy-metal band, WeR2Loud, know that there are two types of concert-goers: die-hard fa
    6·1 answer
  • The text uses __________ as an example of a set of people with a history as a counterculture in the u.s.
    6·1 answer
  • A government experienced significant loss of certain roadways and bridges as a result of major flooding. Which of the following
    7·1 answer
  • Mountaintop Clearview Corporation authorizes Niles, its employee, to oversee its timber operation. In the course of his employme
    10·1 answer
  • Firms with a(n) _________________ orientation spend little on marketing research and planning, target customers indiscriminately
    5·1 answer
  • Although other countries are finding non-traditional oil reserves and establishing methods of extraction to retrieve them, who i
    8·1 answer
  • What is the best questions that entrepreneurs should know before starting a business?​
    14·1 answer
  • 5. Based on the data in the table below, what is the probability that a driver aged
    10·2 answers
  • The foundation of good performance management is and choosing the best method(s) for measuring it. Use your knowledge of the bal
    9·1 answer
  • Layout analysis at arnold palmer hospital resulted in recognizing that the nursing staff spent ______ of their time just walking
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!