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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:

e. any of the other answers can occur.

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Perhaps ahead of the times, __________ warned of the dangers of the coalescing interests of the top leaders of business, politic
mylen [45]

It should be noted that Perhaps ahead of the times, Talcott Parsons warned of the dangers of the coalescing interests of the top leaders of business, politics, and the military.

<h3>Who is Talcott Parsons?</h3>

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Assuming Year 2 net credit sales totaled $122,000, what was the company's average days to collect receivables
Montano1993 [528]

Answer:

44.88 days

Explanation:

Note: The full question is attached

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3 years ago
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Answer:

30600 less 25 000 = 5600

increase in net income

Explanation

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sales                                       224 000                                                  160 000  

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fixed costs                             (87 000)                                                  (87 000)                                              

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6 0
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Which of the following is a disadvantage of a market economy?a. consumer satisfaction is lowb. it limits freedom for producers a
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