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Andrej [43]
3 years ago
9

All sales are made on credit. Based on past experience, the company estimates 2.5% of ending account receivable to be uncollecti

ble. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?
Business
1 answer:
Misha Larkins [42]3 years ago
4 0

Answer:

Debit Bad Debts Expense $12,475

Credit Allowance for Doubtful Accounts $12,475

Explanation:

Calculation for estimated bad debts expense:

Explanation

Accounts receivable * Sales uncollectible

$445,000×0.025

=11,125

Hence:

11,125 +Allowance for Doubtful Accounts 1,350

=$12,475

Therefore the estimated bad debt will be:

Debit Bad Debts Expense $12,475

Credit Allowance for Doubtful Accounts $12,475

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On December 31, 2021, Coolwear Inc. had balances in Accounts Receivable and Allowance for Uncollectible Accounts of $44,000 and
faust18 [17]

Answer: $3,575

Explanation:

Opening balance for Allowance for Noncollectable Accounts for 2022 is closing balance for 2021 = $1,300.

Cool wear wrote off $775 during the year which would come out of the allowance;

= 1,300 - 775

= $525

An allowance of $4,100 was determined for the year which means that the Bad debt expense is the difference between the determined allowance and the current balance because this is the amount that the account had to be increased by to cater for the bad debt expense.

= 4,100 - 525

= $3,575

3 0
3 years ago
Management accounting is accounting for effective management. Explain this statement.​
Marianna [84]

Explanation:

Management is the process of organizing, commanding, coordinating and controlling administrative resources. When we talk about management accounting, we relate to a company's financial resources, which are essential for profitability, payments, investments, etc., that is, so that the business can flow effectively.

Therefore, it is correct to say that managerial accounting is the accounting for effective management because accounting is an instrument of control and management for organizing financial accounts and indexes, these being essential instruments in helping to better decision making in a period of time, giving subsidies for managers to adapt and anticipate negative financial situations for example.

4 0
3 years ago
Explained moral lessons for the life of Okomfo Anokye​
mariarad [96]

Answer:

It is said that when Okomfo Anokye was born in Awukugua he was already holding in his right hand a short white tail of a cow (Podua); and he had so firmly clenched the fist of the other hand that no one could open it. The woman who went to deliver the labouring mother tried to open it because she suspected there was something in it. The father was called in to assist... Okomfo Anokye opened his eyes and, staring at the father, quickly opened the mysterious hand, showing it to the father and saying "Ano....Kye" (Guan language) meaning "Ano...see" and gave to the father what was in it. It is alleged that it was a talisman. From this incident Kwame Agyei got his name "Anokye".

Explanation:

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3 years ago
Is It Possible To Be An Exterminator If Your Scared Of Every Known Bug, insect Or Termite Known To Man Kind Like (Ants,Bees,Bed
givi [52]

Answer:

Well it depends on the person. Are you scared of seeing bugs or scared of even thinking or knowing about them. If you are a truly scared I would suggest not becoming an exterminator.

If its just a general fear of insects you can give the job a try, since most exterminators don't come in direct contact with insects you will rather be spraying or preventing the insects to come in the first place.

6 0
2 years ago
Read 2 more answers
explain how the price consumers pay for a good is influenced by the price of the resources that go into making it
Reika [66]

Answer:

Here's an example

I sell bead bracelets for $5.00. The chord I use to make them is $2.50 for 5 feet. Each bracelet needs 1/4 of a foot of chord. That is $0.13 worth of chord per bracelet. The beads I use are 30 beads for $1.00. I use 5 beads in each bracelet. That is $0.17 worth of beads per bracelet. The total price of the materials per bracelet is 30 cents. Let's say It takes me 10 minutes to make a single bracelet. If I sell the bracelet at 30 cents, I would no have made a profit and would instead lose 10 minutes of my time. If I sell it for anything less, I would be losing money and time. If I want to make a profit, I need to add the money I want to make plus the cost of resources. Therefore, if I want to make a profit of $4.70, I must sell the bracelets for $5.00.

4 0
3 years ago
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