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
IRINA_888 [86]
3 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]3 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)

You might be interested in
What can be done when parties are faced with moral differences that seem to be intolerable?
nirvana33 [79]
They can go to a well known reputable counsellor and both present their points of view and their reasoning and discuss it with the counsellor who should be able to delve into the reasoning for their moral positions and perhaps find common ground for the two positions or point out inconsistencies in the arguments of one to increase understanding of the other parties's position and arrive at a mutually beneficial result.
4 0
3 years ago
Can you study a bachelor's degree right after high school? Or do you need to graduate first from college or university to then g
Leya [2.2K]
You have to graduate a college or university first
3 0
3 years ago
Read 2 more answers
On July 1, Year 4, Pell Co. purchased Green Corp. 10-year, 8% bonds with a face amount of $500,000 for $420,000. The bonds are c
gayaneshka [121]

Answer:

$21,800

Explanation:

The computation of 4-year revenue is as shown below:-

Bond Income of 4th Year = Face amount × Bond × 1 ÷ 2

= $500,000 × 8% × 1 ÷ 2

= $20,000

Interest Revenue = Bond Income + Amount of Discount Amortized

= $20,000 + $1,800

= $21,800

Therefore for computing the interest revenue we simply bond income with the amount of discount amortized.

6 0
3 years ago
Elka can remember the phone number she just looked up only by repeating it over and over. When she stops saying it out loud, she
Harrizon [31]

Answer:

maintenance; short-term

Explanation:

When she stops saying it out loud, she forgets it. Elka is using maintenance rehearsal to keep the information in short-term memory

Maintenance Rehearsal is the process of repeatedly verbalizing or thinking about a piece of information.

3 0
3 years ago
Raleigh Co. has the following products in its ending inventory. Compute the lower of cost or market total for inventory applied
Flura [38]

Answer:

<u>c. $2,018.00</u>

Explanation:

Lower of cost or market is the inventory valuation method which requires to record the inventory at a value lower of

  • Initial cost of inventory ( Manufacturing cost or Purchasing cost )
  • Market value of the Inventory ( Net realizable value of the market )

Product__Quantity__Cost per unit__Market per unit___ Lower ____Value

Jelly _____150 ______$2.00 ______2.15___________ $2.00____ $300

Jam _____ 370 _____ $2.65 ______2.50 __________ $2.50 ____ $925

Marmalade 260 _____ $3.10 ______3.05  __________ $3.05 ____ $793

Total Value ___________________________________________<u>$2,018</u>

6 0
3 years ago
Other questions:
  • Helen tells her nephew, Bernard, that she will pay him $100 if he will stop smoking for six months. Helen was hopeful that if Be
    10·2 answers
  • ILL MARK YOU BRAINLEST PLS HELP!!!
    9·1 answer
  • Workforce is defined as . Answer Choices A. employees, volunteers, trainees and other persons whose conduct, in the performance
    10·1 answer
  • Alexie transfers land valued at $250,000 (her basis = $220,000) to Sorenson Corp. in exchange for Sorenson common stock valued a
    10·1 answer
  • The only income Ramon needs to report on his Schedule C is his income from Form 1099-K, Payment Card and Third Party Network Tra
    9·1 answer
  • Mesa Cheese Company has developed a new cheese slicer called Slim Slicer. The company plans to sell this slicer through its cata
    14·1 answer
  • Fijisawa Inc. is considering a major expansion of its product line and has estimated the following free cash flows associated wi
    15·1 answer
  • Prior to the merger, Firm A has $1,250 in total earnings with 750 shares outstanding at a market price per share of $42. Firm B
    6·1 answer
  • Why is international trade important for SA?
    15·1 answer
  • Which of the following is not something that will help you pay off credit card debt? a. Stop using your credit cards. B. Make ex
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!