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Snowcat [4.5K]
3 years ago
5

At the end of the current year, the accounts receivable account has a debit balance of $999,000 and sales for the year total $11

,330,000. The allowance account before adjustment has a debit balance of $13,500. Bad debt expense is estimated at 1/4 of 1% of sales. The allowance account before adjustment has a debit balance of $13,500. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $43,200. The allowance account before adjustment has a credit balance of $6,400. Bad debt expense is estimated at 1/2 of 1% of sales. The allowance account before adjustment has a credit balance of $6,400. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $53,100. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above.
Business
1 answer:
Pavel [41]3 years ago
3 0

Answer:

A.$28,325

B.$56,700

C.$56,650

D.$46,700

Explanation:

A.Record adjusting entry for bad debts on estimated percentage of sales as shown below:

Dr bad debt expenses$11,330,000× 1%×(1/4) $28,325

Cr Allowance for doubtful accounts $28,325

B.Record adjusting entry for doubtful accounts based on aging of accounts as shown below:

Dr Bad debt expense ($43,200+$13,500) $56,700

Cr Allowance for doubtful accounts $56,700

C.Record adjusting entry for bad debts on estimated at 1/2 of 1% of sales.

Dr bad debt expenses$11,330,000× 1%×(1/2) $56,650

Cr Allowance for doubtful accounts $56,650

D.Dr Bad debt expense ($53,100- $6,400) $46,700

Cr Allowance for doubtful accounts $46,700

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Nouvelle cuisine



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8 0
3 years ago
The practice of making false statements about a property in order to lower its value and increase the buyer’s profit is called:
ArbitrLikvidat [17]

Answer:

Blockbusting

Explanation:

The practice of making false statements about a property in order to lower its value and increase the buyer’s profit is called Blockbusting. Blockbusting is the method of convincing landlords to sell estate cheaply, which was done by the U.S. property agents and construction developers and they do this by developing terror in the people that people with different racial and class will be soon relocating in the neighborhood and hence benefiting via reselling at a more expensive cost.

3 0
3 years ago
The market value balance sheet for Cherry Pie Corp. reflects a cash of $22,000, fixed assets of $209,000, and equity of $231,000
Blizzard [7]

Answer:

The correct answer is D.

Explanation:

Equity = $231,000

No. of outstanding shares = 5,000

Price of share = \frac{231,000}{5000}

Price of share = $46.2

Repurchased shares worth $18,000

No. of shares repurchased = \frac{18,000}{46.2}

No. of shares repurchased = 390

When the shares would have been repurchased then the value of equity would decrease by the same amount.

Revised equity = $231,000 - $18,000

Revised equity = $213,000

No. of shares outstanding = 5,000 - 390

No. of shares outstanding = 4,610

Thus, the price of each share would be:

Share price = \frac{213,000}{4,610}

Share price = $42.60

8 0
3 years ago
Folio Company estimates total manufacturing overhead costs to be $80,000 for the year and estimates direct labor hours to be 4,0
gregori [183]

Answer:

Allocated Overhead= $76,000

Explanation:

Giving the following information:

Estimated overhead for the period= $80,000

Estimated direct labor hours= 4,000 for the same period

Actual direct labor hours for the period are 3,800.

<u>First, we need to calculate the estimated overhead rate. Then, we can determine the amount of overhead allocated to work in process for the period.</u>

To calculate the estimated manufacturing overhead rate we need to use the following formula:

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

Estimated manufacturing overhead rate= 80,000/4,000= $20 per direct labor hour

Now, we can allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 20*3,800= $76,000

8 0
3 years ago
Most economists believe that prices are:
BaLLatris [955]

Answer: Most economist believe that prices are flexible in the long run but many are sticky in the short run.

Explanation:

Prices are sticky in the short run because producers and buyers take time to adapt to new situations. If there is a shortage of butter, lets say, the economic theory says that the prices will rise because there is less butter ( ceteris paribus = all the other factors remain constant). Actually, buyers and suppliers need time to adapt to the new situation. However, in the long run buyers and suppliers have time to adapt to new situations so prices become more flexible.

8 0
3 years ago
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