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Licemer1 [7]
3 years ago
8

Using the aging method of accounts receivable method, $5,000 of the company's Accounts Receivable are estimated to be uncollecti

ble. At the end of the year, the balance of Accounts Receivable is $100,000 and the unadjusted credit balance of the Allowance for Doubtful Accounts is $500. Credit sales during the year totaled $150,000. What is the current year's Bad Debt Expense?
Business
1 answer:
gogolik [260]3 years ago
6 0

Answer:

The correct answer is $4,500.

Explanation:

According to the scenario, the given data are as follows:

Uncollectible Account receivable = $5,000

Account receivable balance = $100,000

Allowance for Doubtful Accounts = $500

Credit sales = $150,000

So, we can calculate the bad debt expense by using following formula:

Bad debt expense = Uncollectible Account receivable - Allowance for Doubtful Accounts

by putting the value, we get

Bad debt expense = $5,000 - $500

= $4,500.

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Midyear on July 31st, the Digby Corporation's balance sheet reported: Total Assets of $210.761 million Total Common Stock of $6.
xeze [42]

Answer:

the  Digby Corporation's total liabilities is $156.92 million

Explanation:

The computation of the total liabilities is given below:

Total Liabilities is

= Total Asset - (Total Common Stock + Retained Earnings)

= $210.761 - ($6.350 + $47.491)

= $210.761 - $6.350 - $47.491

= $156.92 million

Hence, the  Digby Corporation's total liabilities is $156.92 million

The same should be relevant

5 0
2 years ago
When iTunes sells a song or movie, it must record the transaction in accounts. Which accounts might iTunes use when it sells a s
Kay [80]

Since the actual process of the transaction is instantaneous, and its takes the money directly out of your account, the account they're dealing with is most likely Revenue.

Accounts Receivable is also another option that may come to mind, but remember that in this account, the seller is waiting for payment. Once the responsible party pays the seller, A/R is credited (decreased) and Revenue is debited (increased).

With iTunes (as stated previously), the transaction happens right then and there. We pay cash and iTunes gives us the song/movie/album/etc. Therefore, the only logical answer would be <u>Revenue</u>. In this case, <em>Sales Revenue</em> since we're dealing with a type of retailer and not a service.

7 0
3 years ago
When using absorption costing when production is greater than sales, a portion of fixed overhead is allocated to?
Dmitriy789 [7]

When using absorption costing when production is greater than sales, a portion of fixed overhead is allocated to ending inventory.

Production is the process of combining diverse material and immaterial inputs to create a consumable good or service. It is the process of producing something of worth, goods, or assistance that benefits a person.

Manufacturing is the process of creating items or goods out of components or raw materials. To put it another way, manufacturing employs inputs to produce outputs fit for consumption, i.e., things or products that are valuable to the consumer or end-user. The creation of furniture is an illustration of production. Harvesting corn for food is an illustration of production. Corn production is an illustration of production.

To know more about Production refer to:  brainly.com/question/14293417

#SPJ4

8 0
1 year ago
Marcy's, Inc. operates department stores located primarily in the Southwest, Southeast, and Midwest. In its 2013 third-quarter r
NemiM [27]

Answer:

Estimate merchandise purchases for the third quarter is $2.8 billion

Explanation:

The computation of the merchandise purchases for the third quarter is shown below:

= Ending inventory + Cost of goods sold - Beginning inventory

= $3.5 billion + $2.4 billion - $3.1 billion

= $2.8 billion

We simply apply the cost of goods sold formula which is shown below:

Cost of goods sold = Opening inventory + Purchase - ending inventory

6 0
3 years ago
According to recent surveys regarding Big Data and its impacts, approximately 25………………. percent of information stored in organiz
givi [52]

Answer:

25%, 5%, 1%

According to recent surveys regarding Big Data and its impacts, approximately 25 percent of information stored in organizations has real business value, while 5 percent must be kept as business records and about 1 percent is retained due to a litigation hold.

Explanation:

From the above answer, we find out that it is only ideal to keep a total of 31% of information or data in an organization.

The remaining 69% of information that is kept in a business or organisation can be easily removed with posing any threat to the organization or causing any legal problems.

Any information that has no important business, legal or regulatory value to the company should be removed. This helps the business to be productive and make it easier to abide by any rules or regulations from any regulatory body.

The higher the percent of data or information a company has , the higher the cost or amount of money required to keep an IT department functioning.

If there is a reduced amount of data in a company, the amount of money required to keep the IT department running would be greatly reduced and this money can be used by the organization to make important investments that can develop and benefit the organization.

8 0
2 years ago
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