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lidiya [134]
3 years ago
15

The Reingold Hat Company uses the allowance method to account for bad debts. During 2018, the company recorded $800,000 in credi

t sales. At the end of 2018, account balances were: Accounts receivable, $120,000; Allowance for uncollectible accounts, $3,000 (credit). If bad debt expense is estimated to be 3% of credit sales, the appropriate adjusting entry will include a debit to bad debt expense of:
Business
1 answer:
olasank [31]3 years ago
4 0

Answer:

$24,000

Explanation:

Since in the question it is given that the  3% of credit sales is considered to be a bad debt expense

where,

Credit sales is $800,000

And, the estimated percentage is 3%

So by considering this above information, the amount debited to bad debt expense is

= $800,000 × 3%

= $24,000

All the other information i.e to be given is not relevant. Hence, ignored it

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katovenus [111]
I would ask them if they were comfortable with a fluctuating rate, which though at the moment is lower than the fixed rate, could go up in the future. I would also ask them if they needed to be sure of the rate say for example for a 5 year term like in a mortgage for peace of mind or if they are willing to take a risk with the fluctuations. If the latter, I would tell them that at any time they could lock it in for a 5 year term if they saw it going up. 
5 0
3 years ago
Sam’s Auto Shop services and repairs a particular brand of foreign automobile. Sam uses oil filters throughout the year. The sho
Sindrei [870]

Answer:

The EOQ is 353 units

Explanation:

The economic order quantity or EOQ is the quantoty that minimized the holding and ordering cost for invetory.

The formula for EOQ is,

EOQ = √(2*D*O) / H

Where,

  • D is the annual demand in units
  • O is the ordering cost per order
  • H is the holding cost per unit per annum

The annual demand of oil filters by Sam is,

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The EOQ for Sam Auto Shop is,

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3 0
3 years ago
A proposed new investment has projected sales of $585,000. Variable costs are 44 percent of sales, and fixed costs are $187,000;
Tema [17]

Answer:

The projected Net Income is $70,784

Explanation:

The Pro- forma income Statement

Working Note:

Variable cost = Sales × 44%

= $585,000 × 44%

= $257,400

EBT (Earnings before Tax) = Sales - Variable cost - fixed cost - depreciation

= $585,000 - $257,400 - $187,000 - $51,000

= $89,600

Net Income = EBT × Tax rate

= $89,600 × 21%

= $70,784

8 0
3 years ago
9+10= what A.19 B.21 C.1 D222
Advocard [28]

Answer:

A.19

hope this helps! this seems like an easy question to me, is this a trick question??

8 0
3 years ago
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Carl started earning a paycheck and wants to invest some of what he earned. In this situation, why is it important for Carl to b
Alex_Xolod [135]
The reason that it is important for Carl to be financially literate is so that he can learn how to invest his own money and manage it properly so that it continues to grow. 
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3 years ago
Read 2 more answers
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