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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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Nipigon manufacturing has a cost of debt of 9 %, a cost of equity of 11%, and a cost of preferred stock of 10%. nipigon currentl
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Weightage

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Total weighted average cost= 0.05676+0.0320+0.00886

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What is the weighted average cost method?

A weighted average computation accounts for the varying levels of significance of the numbers in a data collection. A specified weight is multiplied by each value in the data set before the final computation is completed when calculating a weighted average.

Learn more about weighted average cost method: brainly.com/question/8543883

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