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faltersainse [42]
3 years ago
6

Nichols Company uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $2

00,000 and credit sales are $1,000,000. Management estimates that 4% of accounts receivable will be uncollectible. What adjusting entry will Nichols Company make if the Allowance for Doubtful Accounts has a credit balance of $2,000 before adjustment?
Business
1 answer:
lora16 [44]3 years ago
3 0

Answer:

bad debt expense 6,000 debit

allowance for uncollectible amounts 6,000 credit

Explanation:

expected allowance balance:

account receivable x expected uncollectible amount

200,000 x 4% = 8,000

currently the allowance balance is 2,000

so the amount of the adjustment will be to move the balance to 8,000 from 2,000:  adjusting entry for 6,000

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If you have contacted a seller to report a problem with a product and you were ignored, what should you do next?
KatRina [158]
Call back and try to report the problem again.
8 0
2 years ago
Nutech Corp. is expecting the following cash flows—$79,000, $112,000, $164,000, $84,000, and $242,000—over the next five years.
Alja [10]

Answer:

$429,560

Explanation:

Present value will be calculated through the PV formula,

PV = \frac{C1}{1+r}  + \frac{C2}{(1+r)^{2} } + \frac{C3}{(1+r)^{3}} + \frac{C4}{(1+r)^{4}} + \frac{C5}{(1+r)^{5}}

r = 15%

C1 = $79,000 ,C2 = $112,000 ,C3 = $164,000 ,C4 = $84,000 ,C5 = $242,000

Substituting the values in the formula,

PV = \frac{79,000}{1.15}  + \frac{112,000}{(1.15)^{2} } + \frac{164,000}{(1.15)^{3}} + \frac{84,000}{(1.15)^{4}} + \frac{242,000}{(1.15)^{5}}

PV = 68,695.66 + 84,688 + 107,838 + 48,030.2 + 120,338.14

PV = $429,560

The present value of the cash flows of Nutech Corp. over the next five years is $429,560.

8 0
3 years ago
Asking a job applicant if he or she has ever been treated for drug addiction is an example of a(n)
Vladimir [108]

This is an illegal question. You may ask about a person's convictions for drug related charges, but you should not ask about treatment. This could also be classified as a needless question, but mostly illegal.

4 0
3 years ago
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When reflecting upon the newer generation, each older generation says the same thing:
kakasveta [241]

Answer:

live long boomers

Explanation:

4 0
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You have a credit card bill from ABC Credit for a total of $3,754. Please group the transactions within the appropriate T-Accoun
LuckyWell [14K]

Credit card bill from ABC credit have listed a number of expenses made, these needs to be posted according to the relevant accounting heads.

<h3 /><h3>What is Accounting?</h3>

Accounting is the calculation of cash, in other terms it is the study of debit and credit. The accounting teaches the treatment of different transactions, the transactions are divided in different heads, asset, expense, income, liability and capital.

T Accounts should be made as follows.

Assets

DR $1500 Computers

DR $650 Furniture

DR $334 Van Payment

Expenses

DR $420 Office Supplies

DR $250 Electric Company

DR $100 Water

DR $250 Office Supplies

Petty Expenses

DR $150 Steak House

DR $100 Fuel Stop

The expenses are distributed among the heads that they are relevant to, petty expenses only contains the payment for expenses that are immaterial in nature and amount, Asset account have the payments made for assets.

Learn more about Credit card at brainly.com/question/27123519

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