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umka21 [38]
3 years ago
13

At the end of the current year, Accounts Receivable has a balance of $590,000; Allowance for Doubtful Accounts has a debit balan

ce of $5,500; and sales for the year total $2,660,000. Bad debt expense is estimated at 1/4 of 1% of sales. a. Determine the amount of the adjusting entry for uncollectible accounts. $ b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable $ Allowance for Doubtful Accounts $ Bad Debt Expense $ c. Determine the net realizable value of accounts receivable.
Business
1 answer:
denpristay [2]3 years ago
6 0

Answer and Explanation:

a. The computation of uncollectible accounts and Journal entry is shown below:-

Bad Debt expenses Dr, $6,650

($2,660,000 × 1 ÷ 4× 1%)

       To Allowance for doubtful accounts $6,650

(Being uncollectible accounts is recorded)

b. The computation of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense is shown below:-

Accounts receivable = $590,000

Allowance for Doubtful Accounts = (Sales of the year × 1 ÷ 4 × 1%) - Credit balance

= ($2,660,000 × 1 ÷ 4 × 1%) - $5,500

= $6,650 - $5,500

= $1,150

Bad debt expenses = Sales of the year × 1 ÷ 4 × 1%

= $2,660,000 × 1 ÷ 4 × 1%

= $6,650

c. The computation of net realizable value of accounts receivable is shown below:-

Net realizable value = Accounts receivable - Allowance for Doubtful Accounts

= $590,000 - $1,150

= $588,850

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D) There is not enough information to make a definitive choice.

Answer:

Option B is correct.

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Explanation:

Robert invested in stock and received a positive return over a 9-month period then the effective annual return  will be the greatest.

3 0
3 years ago
____ emphasized designing and managing organization on an impersonal, rational basis through such elements as clearly defined au
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Answer:

bureaucratic organizations

Explanation:

Bureaucratic organizations -

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The correct term for the given statement is  bureaucratic organizations .

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Which of the following is an example of a non-profit organization?
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Answer: Salvation army

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8 0
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Cushing Manufacturing assigns overhead based on machine hours. The MillingDepartment logs 1,800 machine hours and Cutting Depart
morpeh [17]

Answer:

Explanation:

The journal entry is shown below:

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Cutting work in progress A/c Dr $15,000

     To Manufacturing overhead A/c             $24,000

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The milling work in progress is computed by

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= 1,800 machine hours × $5

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And, The cutting work in progress is computed by

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I assumed you typo 821 by $21 per unit, then the answer will be

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Explanation:

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a minimum selling price for these units is $14.00 per unit because it’s the price the company can earn if accept a special order, though lower than cost of producing and selling at $18.00

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