1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Marizza181 [45]
3 years ago
12

For 2018, Rahal's Auto Parts estimates bad debt expense at 1% of credit sales. The company reported accounts receivable and an a

llowance for uncollectible accounts of $86,500 and $2,100, respectively, at December 31, 2017. During 2018, Rahal's credit sales and collections were $404,000 and $408,000, respectively, and $2,340 in accounts receivable were written off.
Rahal's final balance in its allowance for uncollectible accounts at December 31, 2018, is:

Multiple Choice

$4,040.

$4,100.

$3,800.

$4,340.
Business
1 answer:
Helga [31]3 years ago
5 0

Answer:

The correct option is C which is $3,800

Explanation:

The final balance of Rahul in the allowance for uncollectible accounts on December 31, 2018 is computed as:

Allowance for uncollectible accounts on December 31, 2018 = Allowance for uncollectible accounts ( beginning balance) - Accounts receivable written off + Bad debt expense

= $2,100 - $2,340 + $4,040

= - $240 + $4,040

= $3,800

Working Note:

Bad debt expense = Credit Sales × 1%

                                = $404,000 × 1%

                                = $4,040

You might be interested in
Fixed Overhead Spending and Volume Variances, Columnar and Formula Approaches
shutvik [7]

Answer:

Fixed Overheads Spending Variance = $5,000 Unfavorable(U).

Fixed Overheads Spending Variance = $20,000  Favorable (F).

Explanation:

Fixed Overheads Spending Variance = Actual Fixed Overheads  - Budgeted Fixed Overheads

                                                              = $305,000 -  $300,000

                                                              = $5,000 Unfavorable(U).

Fixed Overheads Spending Variance = Fixed Overheads at Actual Production  - Budgeted Fixed Overheads

                                                              = ($5.00 × 64,000) - $300,000

                                                              = $320,000 - $300,000

                                                              = $20,000  Favorable (F)

3 0
3 years ago
Rocky industries received its telephone bill in the amount of $300 and immediately paid it. rocky's journal entry to record this
loris [4]
Hi there

The journal entry would be

debit to telephone expense for $300
Credit to cash for $300

Good luck!
8 0
3 years ago
Suppose that an economy has 9 million people working full-time. it also has 1 million people who are actively seeking work but c
Luda [366]
The unemployment rate will be of 10% of the economy. We can only have in mind the Million people who are actively seeking work in here which is in itself what is taken into account when talking about economy's unemployment rate. Remember also that the unemployment rate that is consistent with full employment known as the natural rate of unemployment. 
4 0
3 years ago
According to the market theory of wage determination, under what circumstances will wages for a paticular group be highest?
eduard
The answer to that would be D
3 0
4 years ago
Financial assets A. directly contribute to the country's productive capacity. B. indirectly contribute to the country's producti
goblinko [34]

Answer:

B) indirectly contribute to the country's productive capacity.

Explanation:

Financial assets are non-physical assets whose value is determined by contractual rights, e.g. cash, stocks, bonds, bank CDs, etc.

Financial assets indirectly contribute to the country's productive capacity since they allow individuals and businesses to invest in other private firms and government securities. This increases the amount that private firms and government can invest or spend.

3 0
3 years ago
Read 2 more answers
Other questions:
  • The maturity value of a $40,000, 9%, 40-day note receivable dated July 3 is A. $40,000B. $40,400C. $43,600D. $44,000
    15·1 answer
  • Write a three-paragraph essay describing the value and benefits of using a balanced scorecard for management control. Compare an
    9·1 answer
  • Which of the following would you expect to decrease the demand for tennis racquets?
    15·1 answer
  • When it comes to saving money, what is a good rule of thumb?
    10·1 answer
  • If a country has positive net capital outflows, then its net exports are a. positive, and its saving is larger than its domestic
    5·1 answer
  • When you are considering changing careers, it is important to manage the process to achieve your desired outcome.
    8·2 answers
  • Yesterday, Bob and Maria were not willing to trade $40 for book. Today, they are. What made the difference?
    10·1 answer
  • How did the McDonald brothers lose the Mcdonalds business?
    15·1 answer
  • When treasury stock is purchased for an amount greater than its par, what is the effect on total shareholders' equity?
    5·1 answer
  • you have been hired to conduct a job analysis at a local fast food chain. after completing your analysis, you conclude that the
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!