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bulgar [2K]
3 years ago
13

National Art is a new business. During its first year of operations, credit sales were $40,000 and collections were credit sales

of $31,000. One account, $525 was written off. Management uses the percent-of-sales method to account for bad debts expense and estimates 2% of credit sales to be uncollectible. The ending balance of Allowance for Bad Debts account is ________. Do not round until the final answer. Then round to the nearest whole dollar.
Business
1 answer:
zmey [24]3 years ago
6 0

Answer:

The ending balance of Allowance for Bad Debts account is $800

Explanation:

The computation of the ending balance of allowance for bad debt is shown below:

= Credit sales × uncollectible rate

= $40,000 × 2%

= $800

The estimated amount would be considered as an allowance for bad debts i.e $800, So no other amount would be come while computing the ending balance of Allowance for Bad Debts account.

However, the other information which is given in the question is not relevant. Hence, ignored it

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Whitepunk [10]

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8 0
3 years ago
The following standards for variable manufacturing overhead have been established for a company that makes only one product:
pantera1 [17]

Answer:

c $4,450 U

Explanation:

The computation of the Variable overhead spending variance  is shown below:

= (Standard variable overhead Rate × Actual Hour) - (Actual Rate × Actual Hour)

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The (Actual Rate × Actual Hour) is also called as Actual variable overhead.

All other information which is given is not relevant. Hence, ignored it

3 0
3 years ago
T. L. Jones Trucking Services establishes a petty cash fund on April 3 for $500. By the end of April, the fund has a cash balanc
djyliett [7]

Answer:

The question is missing some figures which can be seen from the attached image.

Petty cash is a fund set aside in the office to pay minor day to day expenses incurred.Usually, an amount is made available at the beginning of period called float,from which expenses can be paid and the amount equal to spend is reimbursed at the end of the month.

In order, to make payment even more easier,some businesses take up credit cards from financial institutions,from  which expenses can be paid on account.

The balance of $415 means in petty fund,implies that $85  spent needs to be replenished at month end and that the remaining expenses were paid with credit card.

Explanation:

Find in the attached spreadsheet the entries posted in respect of petty cash and credit card expenses in the month.

5 0
3 years ago
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Kyoko needs to find the time.

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3 0
3 years ago
Read 2 more answers
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