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kipiarov [429]
3 years ago
6

A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's una

djusted trial balance reported the following selected amounts: Accounts receivable $ 387,000 debit Allowance for uncollectible accounts 620 credit Net Sales 920,000 credit All sales are made on credit. Based on past experience, the company estimates that 0.6% of net credit sales are uncollectible. What amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared
Business
1 answer:
ollegr [7]3 years ago
6 0

Answer:

Bad debt expense A/c Dr  $4,900

           To Allowance for doubtful debts  $4,900

(Being bad debt expense is recorded)

Explanation:

The journal entry is shown below;

Bad debt expense A/c Dr  $4,900

           To Allowance for doubtful debts  $4,900

(Being bad debt expense is recorded)

The computation of the bad debt expense is shown below:

= Net Credit sales × estimated percentage given  - credit balance of allowance for doubtful debts

= $920,000 × 0.6%  - $620

= $5,520 - $620

= $4,900

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Innovative Products reported net income of $219,000. Beginning and ending inventory balances were $44,500 and $46,500, respectiv
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Answer:

$213,500

Explanation:

Given the information above, first, we'll determine increase in inventory

Increase inventory = Ending inventory - Beginning inventory

Increase inventory = $46,500 - $44,500

Increase inventory = $2,000

We will also calculate decrease in account payable

Decrease in accounts payable = Beginning accounts payable - Ending accounts payable

Decrease in accounts payable = $40,500 - $37,000

Decrease in accounts payable = $3,500

Therefore,

Net operating cash flows = Net income - Increase inventory - Decrease in accounts payable

Net operating cash flows = $219,000 - $2,000 - $3,5000 = $213,500

3 0
3 years ago
Licensee mike was owed a commission from seller jane. jane has refused to make payment. what recourse does licensee mike have?
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Licensee mike was owed a commission from seller jane. jane has refused to make payment. The recourse licensee mike has is he can seek damages from his broker.

A sales commission is typically an amount paid to an employee upon completion of a task for the sale of a specified quantity of goods or services. Employers sometimes use sales commissions as an incentive to increase employee productivity. Commissions may be paid in addition to or in lieu of salary.

Commission-based compensation benefits employees because they are ultimately in control of their income. In many ways, when a company uses commission payments, it doesn't limit an employee's potential to increase their income. Jobs that typically earn commissions include:

Learn more about commission here:brainly.com/question/25169847

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5 0
2 years ago
Pick the correct statements regarding cell references.
seropon [69]

where are the statements?

6 0
3 years ago
Read 2 more answers
Intricate Computer Solutions provides services to corporate and individual customers. During the month of​ June, the corporate b
lisabon 2012 [21]

Answer:

Contribution Margin for each corporate customer= $ 67.5

Explanation:

Intricate Computer Solutions

                          <u><em>Corporate Business Segment   Individual Business Segment</em></u>

Revenue.                        $ 60, 000                                        $ 45,000

<u>Variable costs              $ 33, 000                                          $ 25,100​</u>

<u />

<u>Contribution Margin       $ 27,000                                              $ 20,000 </u>

Less

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<u>Operating Income         $19,500                                                $12,500</u>

Contribution Margin for each corporate customer=  Contribution Margin/ No Of Customers  =$ 27000/ 400= $ 67.5

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3 years ago
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