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romanna [79]
3 years ago
12

Cullumber Company uses the percentage-of-receivables basis to record bad debt expense. Accounts receivable (ending balance) $605

,000 (debit) Allowance for doubtful accounts (unadjusted) 4,700 (debit) The company estimates that 3% of accounts receivable will become uncollectible. (a) Prepare the adjusting journal entry to record bad debt expense for the year. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (b) What is the ending (adjusted) balance in Allowance for Doubtful Accounts? Ending (adjusted) balance in Allowance for Doubtful Accounts $ (c) What is the cash (net) realizable value? Cash (net) realizable value $
Business
1 answer:
Lana71 [14]3 years ago
8 0

Answer:

a. Journal entry

b. $18,150

c. $586,850

Explanation:

a. The adjusting journal entry is as follows

Bad debt expense A/c Dr

  To Allowance for doubtful debts

(Being bad debt expense is recorded)\

The computation of the bad debt expense is shown below:

= Account receivable × estimated percentage given  + debit balance of allowance for uncollectible accounts

= $605,000 × 3% + $4,700

= $18,150 + $4,700

= $22,850

b. The adjusted balance in Allowance for Doubtful Accounts is $18,150

c. The cash realizable value is

= $605,0000 - $18,150

= $586,850

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Answer:

B. The United States increased its participation in international trade.

Explanation:

The correct option is - B. The United States increased its participation in international trade.

7 0
3 years ago
White Company is a consulting firm and applies indirect overhead costs based on billing hours. The firm expects to have $102,000
Allisa [31]

Answer:

predetermined overhead allocation rate is 12 per direct labor hour

Explanation:

given data

indirect costs = $102000

labor time = 8500 hours

cost of labor = $60 per hour

to find out

predetermined overhead allocation rate

solution

we find here predetermined overhead allocation rate by given formula that is

predetermined overhead allocation rate = indirect costs / labor time   .............1

put here value in equation 1 to get rate

predetermined overhead allocation rate = indirect costs / labor time

predetermined overhead allocation rate = 102000 / 8500

predetermined overhead allocation rate = 12

so predetermined overhead allocation rate is 12 per direct labor hour

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3 years ago
The asset/liability approach emphasizes: Multiple Choice Whether amounts on the balance sheet meet the definitions of assets and
attashe74 [19]

Answer:

Whether amounts on the balance sheet meet the definitions of assets and liabilities

Explanation:

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3 years ago
A friend of yours is considering two cell phone service providers. Provider A charges $120 per month for the service regardless
erma4kov [3.2K]

Answer / Explanation:

To properly answer this question, we will first define some key terms which includes:

Surplus: This can be refereed to as an amount exceeding a particular requirement after it has been met.

Demand: This can be refereed to as the quantity of goods and serves a consumer or an individual is willing and pay for per time.

Now that we understand the basic concept above, we now refer back to the narrative of the question to try and answer t hem.

(a) With Provider A, the cost of an extra minute is $0. With Provider B, the cost of an extra minute is $1.

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(d) The figure below shows the friend’s demand. With Provider A, she buys 150 minutes and her consumer surplus is equal to (1/2)(3)(150) – 120 = 105. With Provider B, her consumer surplus is equal to (1/2)(2)(100) = 100

(e) I would recommend Provider A because she receives greater consumer surplus when buying from that provider.

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Which rebuttal would best refute the negative’s counterclaim? Standardized test scores are poor indicators of future success. Lo
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I just answered that question.

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3 years ago
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