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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)

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Answer:

greater; higher than

Explanation:

Here is the complete question

If the supply of aisle seats equals the supply of middle seats on an airplane, and the demand for aisle seats is _____________ than the demand for middle seats, then the equilibrium price of aisle seats will be ______________ the equilibrium price of middle seats

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If the demand for aisle seats exceeds the demand for middle seats, it means that equilibrium price for aisle seat would exceed equilibrium price

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8 0
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Which of the following distinguishes mediation from negotiation? Group of answer choices vested authority with a third party dec
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The correct answer is the last option: Involving a third party.

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