We may use a budgeting program to keep track of how much we spend. Budgeting tools can assist us in reducing undesirable and unneeded spending. It can also help us be more disciplined with our spending and save more money. We may set up notifications or reminders to help us keep track of our spending.

5 0

2 years ago

alderwood company has provided the following information prior to any year-end bad debt adjustment: cash sales, $455,000 credit

nordsb [41]

If sales discounts, $57,000 allowance for doubtful accounts credit balance, $3,800 alderwood prepares an aging of accounts receivable and the result shows that 5% of accounts receivable is estimated to be uncollectible. The bad debt expense is:$13,450.

<h3>How to determine the Bad debt expenses ?</h3>

First step is find the Required Balance using this formula

Required Balance =Accounts Receivables × Percentage of Uncollectible

Let plug in the formula

Required Balance =$345,000 × 5%

Required Balance =$17,250

Now let find the bad debt expenses using this formula

Bad debt expenses = Required Balance - Existing Credit Balance

Let plug in the formula

Bad debt expenses = $17,250 - $3,800

Bad debt expenses = $13,450

Therefore we can conclude that the Bad debt expenses is the amount of $13,450.

Learn more about Bad debt expenses here: brainly.com/question/24871617

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6 0

10 months ago

Mike and Sandy are two woodworkers who both make tables and chairs. In one month, Mike can make 4 tables or 20 chairs, where San

mylen [45]

C 5 tables for mike and 1/3 table for sandy

3 0

3 years ago

The existing balance in Allowance for Doubtful Accounts is considered in computing bad debts expense in the A. direct write-off

AlexFokin [52]

The correct answer is choice b - the percentage of receivables basis.

When an accountant is calculating the bad debts expense they will take into account the balance in the Allowance for Doubtful Account when they are calculating on the percentage of sales basis.

8 0

2 years ago