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IRINA_888 [86]
2 years ago
10

Graham Company uses the​ percent-of-sales method to estimate uncollectibles. Net credit sales for the current year amount to $ 1

30 comma 000​, and management estimates 1​% will be uncollectible. The Allowance for Uncollectible Accounts prior to adjustment has a credit balance of $ 3 comma 000. The amount of expense to report on the income statement will be:
Business
1 answer:
Nana76 [90]2 years ago
3 0

Answer:

The amount of expense to report on the income statement will be -$ 1700

Explanation:

Allowance for Doubtful Debts is a Provision or estimate of the Accounts that are likely to be unrecoverable.

Allowance for Doubtful Debts at end of year is used to reduce the Amount of Trade Receivables Outstanding so as to show a Faithful representation of the amount of Assets (Future benefits) the entity has.

Any adjustments to the Provision Account - Allowance for Doubtful Debts is recorded in the Profit and Loss Account

<u>Allowance at End of the year is Calculated as:</u>

$130,000 × 1%

$ 1300

In comparison with the Balance of $ 3,000 this is a decrease in the Allowance and the Profit and Loss is adjusted with a Decrease in allowance for doubtful debts of $ 1700 that is ($3000-$1,000)

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Answer:

c,d and e

Explanation:

The correct statements given in the options are as stated below:

(c)-Terms FOB shipping point means the buyer accepts ownership when the goods depart the seller's place of business.

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<em>This is true because Free on Board shipping means that the seller bears no liability whatsoever once the goods are shipped, hence the shipping costs are the buyers responsibility and will form part of the costs of the goods</em>

(e)-Revenue for the sale will be recorded after the goods reach their destination, if the goods are shipped FOB destination.

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7 0
3 years ago
If the owner of a company withdrew 200 during a period the closing entry for the owner withdrew account would show a
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Explanation:

2

4 0
3 years ago
Formerly owned by ebay, a popular free online payment service that allows you to send money, and accept payments without reveali
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Owned subsidiary of eBay pay-pal is referred to as an online service payment that is owned by eBay providing users with security by allowing them for making payments without revealing their personal financial information.

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4 0
1 year ago
The Levi Company issued $100,000 of 12% bonds on January 1 of the current year at face value. The bonds pay interest semiannuall
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$120

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3 years ago
In 2019, smileytown consumed 50,000 tubes of toothpaste. in 2020, toothpaste consumption rose to 62,000 tubes. Calculate the per
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