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Pavel [41]
3 years ago
15

Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $344,000 and credit sa

les are $1,000,000. An aging of accounts receivable shows that approximately 5% of the outstanding receivables will be uncollectible. What adjusting entry will Tanning Company make if the Allowance for Doubtful Accounts has a credit balance of $2,600 before adjustment?
a. Bad Debt Expense 15,600 Allowance for Doubtful Accounts 15,600.
b. Bad Debt Expense 14,100 Allowance for Doubtful Accounts 14,100.
c. Bad Debt Expense 14,600 Allowance for Doubtful Accounts 14,600.
d. Bad Debt Expense 13,600 Allowance for Doubtful Accounts 13,600.
Business
1 answer:
umka21 [38]3 years ago
5 0

Answer:

c. Bad Debt Expense 14,600 Allowance for Doubtful Accounts 14,600.

Explanation:

As for the information provided,

outstanding balance of accounts receivables = $344,000

Also that the uncollectible balance of accounts receivables is estimated = 5% of outstanding balance.

Therefore, balance at year end of allowance for uncollectible shall be = $344,000 \times 5% = $17,200

Provided existing balance of allowance = $2,600

Thus, entry shall be for amounting = $17,200 - $2,600 = $14,600.

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Consider the following items: (a) Decrease in accounts receivable (f) Gain on the sale of equipment (b) Issuance of common stock
Jlenok [28]

Answer:

(a) Decrease in accounts receivable

(g) Depreciation expense

Explanation:

Operating activities: It involves those transactions that after net income impact the working capital. This will subtract the rise in current assets and a reduction in current liabilities, while adding the decline in current assets and a rise in current liabilities.

It will manage some adjustments in working capital. For addition, the depreciation expenses are added to the net profit and the loss on the selling of assets is added, while the benefit on the sale of assets is deducted

Based on the above explanation, the items which are to be added in the operating activities are

(a) Decrease in account receivable

(g) depreciation expense

Out of all Other items would be deducted and all other items belong to investing and financing activity

8 0
3 years ago
Investing money in a retirement fund is part of a plan for achieving _____. A. Immediate goals b. Long term goals c. Short term
MrRissso [65]

C is the answer hope you l it helps you

6 0
2 years ago
On August 1, 1958, first-class postage for a 1-ounce envelope was 4 cents. On August 1, 2007, a first-class stamp for the same e
Andrej [43]

Answer:

4.86%

Explanation:

Given that,

First-class postage for a 1-ounce envelope = 4 cents

On August 1, 2007

A first-class stamp for the same envelope cost = 41 cents

Period, n = 49 years

F=P(1+i)^{n}

41=P(1+i)^{49}

\frac{41}{4}=(1+i)^{49}

10.25\ cents=(1+i)^{49}

1.0486=(1+i)

i = 1.0486 - 1

 = 0.0486 or 4.86%

Therefore, the interest rate is 4.86%.

3 0
3 years ago
Would the management of a firm in an oligopolistic or in a competitive industry be more likely to engage in what might be called
sp2606 [1]

Answer: Companies in perfect competition do not usually apply "socially conscious" practices because their cost-benefit relationship does not justify it.

Generally, the administration of an oligopolistic company will carry out "socially conscious" practices, because this differentiation between the other companies would lead to higher than normal profits.

6 0
3 years ago
Clothing Emporium was organized on January 1, 2021. The firm was authorized to issue 140,000 shares of $8 par value common stock
natka813 [3]

Answer:

$728,000

Explanation:

Paid in capital can be described as the payments ac company received in exchange for its stock from investors.

From the question, the total paid in capital can be calculated as follows:

Receipt for 42,000 shares at $10 per share = 42,000 * 10 = $420,000

Receipt for 28,000 shares at $11 per share = 28,000 * 11 = $308,000

By adding the two above together and have:

Total paid-in capital = $420,000 + $308,000 = $728,000.

Therefore, total paid-in capital at the end of 2021 is $728,000.

3 0
3 years ago
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