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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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Amiraneli [1.4K]

Answer:

This question is about Corporate Social Responsibility (CSR), which is basically being socially responsible (with the employees, community, environment, etc.) and at the same time trying to maximize the financial value of a company (which is a duty to shareholders).

It might be easier for some companies, e.g. service providers, while much harder for mining companies (and other extracting companies). But it doesn't meant that all companies should try their best to do it.

Some companies even benefit from being socially responsible and increase their income through higher sales, e.g. Ben and Jerry's actually increased their sales of ice cream by focusing on CSR.

Even small businesses can benefit from CSR since it increases customer awareness and loyalty, and that can lead to higher sales. E.g. the public image of local businesses that help to finance certain community services improves and that eventually leads to higher sales.

Customers tend to favor companies that they consider to be socially responsible, and if they have to decide between purchasing from a socially responsible company or from another that isn't, they will generally purchase form the socially responsible one.

3 0
3 years ago
Mary's bakery is trying to determine what price to charge for her cookies, so mary places a low price on them and raises it each
AfilCa [17]
The answer is that, "Mary was conducting an experiment".
Mary has done the experiment by raising the price of cookies every week, and when her experiment finished, she concluded a result from her experiment about the price of cookies which is more profitable. So in daily life we do many experiments to get conclusion from them sometimes it takes more time some times less.
3 0
4 years ago
Examples of nonprogrammed decisions would include the decision to: a. perform routine maintenance on one of the machines in manu
katrin2010 [14]

Answer:

Correct option is (e)

Explanation:

Programmed decisions are those that are planned decisions for routine situations. These decisions are made based on tried and tested methods or standardized procedures. These decisions are made once when situation arises, and subsequently becomes a procedure when similar situations arise in future. Some examples are dealing with labor absenteeism, terminating an employee or re-ordering supplies.

Non programmed decisions are distinctive. They are not based on any past situation. They are mostly taken by upper management using logic or intuition. They do not arise in normal course of business. One such decision is related to developing new product or service. It is not a routine situation. As, such it is an example of non programmed decision. Rest of the options are examples of programmed decision.

6 0
3 years ago
Marla Opper currently earns $50,000 a year and is offered a job in another city for $56,000. The city she would move to has 8 pe
Liono4ka [1.6K]

Answer:

a) What amount must Marla earn in the new city to maintain her current buying power?

$54000

If Marla accepts the new job, will her buying power increase?

Yes increase in $2000

Explanation:

Earn Offer

50000 56000

8%  

4000  

54000 56000

           2000

7 0
3 years ago
Hook Industries's capital structure consists solely of debt and common equity. It can issue debt at rd = 11%, and its common sto
ANTONII [103]

Answer:

16.30%

Explanation:

Calculation for what the percentage of the company's capital structure consists of debt

Using this formula

rs=D1/P0+g

First step is to find the D1 using this formula

D1=(1+Dividend expected grow constant rate) *+Dividend per share

Let plug in the formula

D1=(1+0.07)*$2.00

D1=1.07*$2.00

D1=$2.14

Now let find the percentage of the company's capital structure Using this formula

rs=D1/P0+g

Let plug in the formula

rs=$2.14/$23.00+0.07

rs=0.09304947+0.07

rs=0.1630*100

rs=16.30%

Therefore the percentage of the company's capital structure consists of debt will be 16.30%

5 0
3 years ago
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