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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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Cerrena [4.2K]

A good way to use a cover letter to start a two-way conversation with a potential employer is:

  • Demonstrate excitement for the business.
  • Accentuate a shared link.
  • Start with a noteworthy accomplishment.
  • Bring up a noteworthy topic.
  • Show enthusiasm for what you do.
  • Tell a unique tale.
  • Start with a statement of belief.

<h3>What is a cover letter?</h3>
  • A letter of introduction that is connected to or is included with another document, such as a resume or curriculum vitae, is known as a cover letter, cover letter, inspiration letter, motivating letter, or letter of motivation.
  • You should address two primary points in your cover letter: why you are the ideal candidate for the position, and why you are enthusiastic about working for the organization.
  • Your cover letter should primarily consist of factual information without any filler or stereotypes.

A good way to use a cover letter to start a two-way conversation with a potential employee:

  • Demonstrate excitement for the business.
  • Accentuate a shared link.
  • Start with a noteworthy accomplishment.
  • Bring up a noteworthy topic.
  • Show enthusiasm for what you do.
  • Tell a unique tale.
  • Start with a statement of belief.

Therefore, a good way to use a cover letter to start a two-way conversation with a potential employer is:

  • Demonstrate excitement for the business.
  • Accentuate a shared link.
  • Start with a noteworthy accomplishment.
  • Bring up a noteworthy topic.
  • Show enthusiasm for what you do.
  • Tell a unique tale.
  • Start with a statement of belief.

Know more about a cover letter here:

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3 0
1 year ago
Karen is designing a process for issuing checks and decides that one group of users will have the authority to create new payees
Nataly [62]

Answer:

D. Separation of Duties

Explanation:

Separation of duties also know as segregation of duties refuses that one person he responsible of acquisition of assets, their custody and related record keeping. The process in which Karen is using to prevent fund by separating individuals who as the authority to issue checks is known as separation of duties. It is a form of internal control aimed at reducing risk of errors and frauds.

4 0
2 years ago
Financial assets may include:__________ a. capital assets that can be sold. b. cash, investments, and receivables, inventories,
mojhsa [17]

Answer:

b. <u>cash, investments, and receivables, inventories, prepayments</u>

Explanation:

Financial assets refer to liquid assets which derive their value from ownership rights and claims. For example, bonds, mutual funds, etc are financial assets.

In the given case, cash, investments, receivables, inventories, prepayments (prepaid expense) etc are liquid assets and current assets which can be readily converted to cash. Investments could be both short term and long term.

Investments in treasury bonds are highly liquid.

Capital assets are usually those assets with maturity period of more than one year and unlike current assets are not intended for sale.

8 0
3 years ago
5. Do a SWOT analysis for the business idea you chose in question 2 above. Describe at least 2 strengths, 2 weaknesses, 2 opport
Ulleksa [173]

PART I

Answer:

The business idea is that of a Bakery that specializes in pastry that is mixed with fruits.

Explanation:

SWOT

Strengths

  • Unique Value Proposition which is healthier bread and cake recipes
  • 20 years experience in baking which translates to strong industry  knowledge

Weaknesses

  • Insufficient Equipment to go with
  • Weak or zero visibility for new business

Opportunities

  • Little or no competition as the recipes are unique to me
  • Huge demand for healthier pastry especially in my current location

Threats

  • The industry is heavily regulated and may be shut down if there are compliance issues
  • One competition that knows what they are doing and combines pastry with healthy drinks such as smoothies. We don't do smoothies.

Part II

Answer:

The persons I would give the business plan to are:

  • My family
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  • My banker of over 20 years

  1. I would give the business plan to my family members because they are the easiest people to raise funds from and also because family, can decide to contribute in cash or in-kind with no interest required.
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  3. Banks always have the funds but the funds come at a higher cost than the first two.

Cheers

8 0
2 years ago
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Andre45 [30]

Answer: Explanation:

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cash          11,290 debit

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   account payable       450 credit

we debit the assets and credit the revenue

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             service revenue     1,992 credit (1303 + 689)

we debit the expense and credit the asset we use to pay it

rent expense      634 debit

       cash                           634 credit

we debit the expense and credit the consumed asset

supplies expense     187 debit (450 purchase - 263 at hand)

               supplies            187 credit

8 0
3 years ago
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