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Anna35 [415]
3 years ago
11

Flint Company’s unadjusted trial balance at December 31, 2020, included the following accounts. Debit Credit Accounts receivable

$53,600 Allowance for doubtful accounts 5,450 Net sales $1,209,200 Flint Company estimates its bad debt expense to be 6% of gross accounts receivable. Determine its bad debt expense for 2020. Bad debt expense for 2020 $___________.
Business
1 answer:
sweet [91]3 years ago
3 0

Answer:

Bad debt expense for 2020 is - $ 2,234

Explanation:

Adjustment to the Allowance for Doubtful Debts (Increase or Decrease) are recorded in the Income Statement as part of Bad Debts Expenses as follows;

<em>Increase in Allowance for Doubtful debts = Increases the Bad Debts Expense</em>

<em>Decrease in Allowance for Doubtful debts = Decreases the Bad Debts Expense</em>

During the Period Allowances for Doubtful Debts are calculated as :

Allowances for Doubtful Debts = $53,600 × 6%

                                                    = $ 3,216

Bad Debt Expense = $ 3,216-$5,450

                                =  - $ 2,234

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Use the following information to prepare a multistep income statement and a balance sheet for Sherman Equipment Co. for 2016. (H
Allisa [31]

Answer:

Sherman Equipment Co.

a) Sherman Equipment Co.

Multistep Income Statement

For the year ended December 31, 2016

Sales Revenue                          $320,000

Cost of Goods Sold                     148,000

Gross profit                               $172,000

Operating expenses:

Salaries Expense                     $ 69,000

Operating Expenses                  62,000

Uncollectible Accounts Expense 8,100

Total operating expenses      $139,100

Operating income                   $32,900

Interest Revenue                        5,400

Net income                             $38,300

Balance Sheet

As of December 31, 2016

Assets

Current Assets:

Cash                                                             $48,100

Interest Receivable (short term)                     1,500

Accounts Receivable                    56,000

Allowance for Doubtful Accounts (7,800)  48,200

Notes Receivable (short term)                    24,000

Supplies                                                          1,200

Inventory                                                     98,300

Prepaid Rent                                               12,500

Total current assets                              $233,800

Long-term assets:

Land                                                           40,000

Total assets                                          $273,800

Liabilities and Equity:

Current liabilities:

Accounts Payable                                 $46,000

Salaries Payable                                      12,000

Total current liabilities                         $58,000

Equity:

Common Stock                                 $100,000

Ending Retained Earnings                   115,800

Total equity                                       $215,800

Total liabilities and equity               $273,800

Explanation:

a) Data and Calculations:

Cash 48,100

Interest Receivable (short term) 1,500

Accounts Receivable 56,000

Notes Receivable (short term) 24,000

Supplies 1,200

Inventory 98,300

Prepaid Rent 12,500

Land 40,000

Allowance for Doubtful Accounts 7,800

Accounts Payable 46,000

Salaries Payable 12,000

Common Stock 100,000

Beginning Retained Earnings 81,000

Dividends 3,500

Interest Revenue 5,400

Sales Revenue 320,000

Cost of Goods Sold 148,000

Salaries Expense $ 69,000

Operating Expenses $ 62,000

Uncollectible Accounts Expense 8,100

Cash Flow from Investing Activities 78,400

Beginning Retained Earnings 81,000

Net income                              38,300

Dividends                                 (3,500)

Ending Retained Earnings    115,800

7 0
2 years ago
John borrows $10,000 for 10 years at an effective interest rate of 10%. He can repay the loan using the amortization method with
Ierofanga [76]

Answer:

The balance in the Sinking Fund immediately after repayment of the loan will be $2,133.19

Explanation:

Hi, John will pay the loan by paying the yearly interest and the rest is going to go to the sinking fund, so, if he has $1,627.45 and the annual interest of the loan are $1,000, he will be depositing $627.45 into the sinking fund for ten years. Therefore, the future value of the annual deposits of the sinking can be found by using the following formula.

FutureValue=\frac{A((1+r)^{n} -1)}{r}

Where:

A = equal annual savings into the sinking fund (that is $627.45)

r = effective rate of the sinking fund (14%)

n = 10 years

Everything should look like this.

FutureValue=\frac{627.45((1+0.14)^{10} -1)}{0.14}

Future Value=12,133.19

Now, this is the balance after 10 years, but remember that John has to pay the loan, which is $10,000 (not $11,000 because John pays the interest of the loan and then deposits the balance into the sinking fund). Therefore, the balance after repaying the loan is $12,133.19 - $10,000 = $2,133.19.

Best of luck.

8 0
3 years ago
When a company makes marketing decisions by considering consumers' wants and interests, the company's requirements, and society'
Vinil7 [7]

Answer:

Option B: Societal

Explanation:

Societal Marketing was coined from the marketing concept. Marketers and consumers are collecting stocks of what is good for themselves, their family, their country, and the planet.

It involves means by which marketing looks for ways amd means to provide products and services to help consumers reach their goals and Target while also making profitable decisions for their companies.

It is useful to consumers' long-run best interest and help promoting good corporate citizenship.

3 0
2 years ago
Explain the three main characteristics and uses of money
strojnjashka [21]

Answer:

Explanation:

The characteristics of money are durability, portability, divisibility, uniformity, limited supply, and acceptability.

8 0
2 years ago
Which of the following is not a benefit of networking
Marysya12 [62]

Answer:

B. Registering for college courses earlier

Explanation:

Here are the options  

A. Meeting potential employers  

B. Registering for college courses earlier

C. Building relationships

D. Learning how to socialize professionally

Networking can be described as when people with similar interests come together to exchange ideas. The exchange of ideas usually takes place in an informal setting.

With the advent of technology, networking can take place on social media.

Networking has several advantages :

  • It connects the unemployed with recruiters
  • It facilities the exchange of ideas and knowledge
  • It is a great way to meet people and exchange ideas
3 0
2 years ago
Read 2 more answers
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