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aalyn [17]
3 years ago
11

Colley Company uses the allowance method for bad debts and has the following information before the year end adjusting entry: Ac

counts Receivable $120,000 Allowance for Doubtful Accounts $500 Sales $800,000 18. If the company used the percentage of sale method and estimates bad debts to be 2% of sales what is the amount of bad debt expense: A) 2,400 B) 16,000 C) 16,500 D) 15,500 19. If the company uses the percentage of accounts receivable method and estimates 4% of accounts receivable will be uncollectible, what is the bad debt expense? A) 4,300 B) 4,800 C) 32,000 D) 5,300
Business
1 answer:
Leona [35]3 years ago
8 0

Answer:

If the company used the percentage of sale method and estimates bad debts to be 2% of sales what is the amount of bad debt expense:

  • D) 15,500

If the company uses the percentage of accounts receivable method and estimates 4% of accounts receivable will be uncollectible

  • A) 4,300

Explanation:

  • The percentage of sale method  

                  800,000  2%  16,000  

Initial Balance  

Accounts Receivable $ 120,000  

Allowance for Uncollectible Accounts  $ 500

Allowance for Uncollectible Accounts $ 15,500  

Accounts Receivable  $ 15,500

  • Accounts Receivable Method  4%  4,800  

Bad debt expense $ 4,300  

Allowance for Uncollectible Accounts  $ 4,300

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In a particular production process the quantities of all inputs used double and then the quantity of output increases by less th
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C. DIMINISHING Returns to property/ scale

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Increasing Returns to Scale : Proportionate Increase in Output > Proportionate Increase in all inputs .

Constant Returns to Scale : Proportionate Increase in Output = Proportionate Increase in all Inputs .

Negative Returns to Scale : Proportionate Increase in Output < Proportionate Increase in all Inputs .

So : If all inputs are doubled (X2) - If output increases equal i.e double (X2) , Constant Returns to Scale . If output increases more i.e triple (X3) , Increasing Returns to scale . If output increases less i.e (1.5X) , Decreasing Returns to Scale.

4 0
3 years ago
Wessner Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.20 Direct labor $
monitta

Answer:

d. $13.00

Explanation:

contributon margin = selling price - variable cost

sales price: $25 per unit

<u>list of variable cost:</u>

Direct mateirals              6.20

Direct labor                     2.80

variable overhead           1.45

sales commisions            1.00

adminsitrative variable<u>   0.55  </u>

total variable cost         12.00

$25 selling price per unit - $12 variable cost per unit =

$13 contribution margin per unit

This is the amount each units "contributes" to ay the fixed cost and make a gain during the period.

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Which of these factors can impact your pay?
Natasha_Volkova [10]

Answer:

The answer will no D .All of the above .

7 0
3 years ago
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