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Gnesinka [82]
3 years ago
15

g Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $276,000 and credit

sales are $1,000,000. An aging of accounts receivable shows that approximately 3% of the outstanding receivables will be uncollectible. What adjusting entry will Tanning Company make if the Allowance for Doubtful Accounts has a credit balance of $2,200 before adjustment?
Business
1 answer:
abruzzese [7]3 years ago
6 0

Answer:

accounts receivable = $276,000

total credit sales = $1,000,000

3% of accounts receivable will not be decollete = $276,000 x 3% = $8,280

if allowance for doubtful accounts has a credit balance of $2,200, you must add = $8,280 - $2,200 = $6,080

the adjusting entry should be:

Dr Bad debt expense 6,080

    Cr Allowance for doubtful accounts 6,080

Since allowance for doubtful accounts is a contra asset account it has a credit balance that reduces the value of accounts receivable.

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One use of inventory is A. to provide a hedge against inflation. B. to tightly synchronize production and distribution processes
liubo4ka [24]

Answer:

A, to provide a hedge against inflation

Explanation:

An inventory is the goods or materials or items held by a company for sale at a future period. An inventory could also be called stock.

Inventory has its uses among which is to provide a hedge for inflation. Inventory helps to provide an hedge against inflation as it can be used to keep good or material or ites for sale at a later date in the situation of price rise.

Simply put, Inventory helps to hold out goods, items, materials till a period when it can be resold at a higher price.

Note that, the goods to be kept for future resale is always bought a a lower price today.

Cheers.

3 0
3 years ago
Arrange the entries in Microsoft Excel. When entering your information, ensure that you are formatting the cells so that the inf
LenaWriter [7]

Week 6:

Upload your Completed Excel Worksheet and Access Database with Imported Data and Tables

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Week 7:

Upload your Completed Access Database & One-page Narrative

By the end of this week you will submit your completed Access database with tables, queries, forms, and report. You will also need to submit a one-page narrative that answers the three questions provided below.

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8 0
3 years ago
Registered vet techs are not licensed to work in research facilities.<br> True or False
Nata [24]

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8 0
4 years ago
What are the benefits of naming a secondary beneficiary in a will? Check all that apply. It could prevent a will from going into
Gnom [1K]

Answer:

• It could prevent a will from going into probate

•It avoids confusion if the primary beneficiary on dies first

•It allows for another option if the primary beneficiary cannot inherit it

Explanation:

A Secondary beneficiary otherwise known as contingent beneficiary is a person or an entity who has been named in a Will, insurance policy or trust to inherit assets therein should the main or primary beneficiary dies before the grantor.

Secondary beneficiary is important because should the primary beneficiary dies first, he is entitled to the benefits therein inorder to avoid confusion as to who should inherit the deceased's assets. It is also important because it provides other option where the primary beneficiary is not able to inherit the will i.e not found at the time of grantor's death or disclaim inheritance in the will, the secondary beneficiary inherits same and also prevent the will from going into probate i.e allowing it to pass through the court process which is oftentimes time consuming .

7 0
4 years ago
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muminat

Answer:

prepayment penalty, maintain, insurance, mortgage

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Prepayment penalty clause relates to the situation that the borrower shall not prepay the borrowed amount as to the creditor it will be loss in the form of interest, thus, it do not want that the borrower shall collect from any other source.

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5 0
3 years ago
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