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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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Explanation:

here is an explanation and solution to your question

For Euphoria:

The opportunity cost of producing a unit of rye in terms of jeans =20/5 = 4

for contente:

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opportunity cost of producing 1 unit of jean in terms of unit of rye:

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for contente = 8/16 = 1/2

1.

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contentes opportunity cost of producing a bushel of rye is 2 pairs of jeans.

2.

contente has comparative advantage in producing rye

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contente produces 8 bushels of rye so with 4 million hours of labor = 8x4 = 32 million bushels in a week.

euphoria 20 pairs of jean in a week, using 4 million hours of labor. 20x4 = 80 pairs of jean a week

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