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Sphinxa [80]
3 years ago
13

During the year, Sheldon Company had net credit sales of $40,000. At the end of the year, before adjusting entries, the balance

in Accounts Receivable was $11,500 (debit) and the balance in Allowance for Bad Debts was $670 (credit). If the company uses an income statement approach to estimate bad debts at 7%, what is the ending balance in the Allowance for Bad Debts account? O A. $1,475 OB. $3,470 ○ C. $2,130 OD, $2,800
Business
1 answer:
telo118 [61]3 years ago
3 0

Answer:

B. $3,470

Explanation:

An income statement approach to estimate bad debts involves the estimation of bad debt as a percentage of credit sales.

Given the following information about Sheldon Company;

net credit sales = $40,000

Accounts Receivable = $11,500

Allowance for Bad Debts = $670

Estimate of bad debts = 7% × $40,000

                                     = $2,800

Ending balance in the Allowance for Bad Debts account = $2,800 + $670

= $3,470

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Chipotle developed a mobile social game called Scarecrow that allowed players who achieved average to high marks in the game to
Tema [17]

Answer:

Advergame

Explanation:

An advergame is a game that is developed in conjuction with a corporate firm which contains advertisment of the products of the corporate firm as well as the firm itself.  

In an advergame, adverts related to the corporate firm that has teamed up with the gaming company are displayed at stages or intervals as agreed upon by the corporate firm and the gaming company.

In the case of Chipotle, it developed a social game to help customers get coupons that can be redeemed at Chipotle stores all over. The scarecrow game is an advergame.

Cheers.

7 0
4 years ago
A lender lends $18,600, which is to be repaid in annual payments of $3100 for 6 years. Which of the following shows the timeline
givi [52]

Answer:

The correct option is option C

$18,600 $3,100 $3,100 $3,100 $3,100 $3,100 $3,100

Explanation:

Year0- $18600

Year1 - $3100

Year2 - $3100

Year3. $3100

Year5. $3100

Year6. $3100

That is the timeline of the loan from the lender's perspective.

4 0
4 years ago
Bolander Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours.
leonid [27]

Answer:

b. $6.50 per machine-hour

Explanation:

The computation of the predetermined overhead rate is

= Total fixed manufacturing overhead cost ÷ Total machine-hours + Variable manufacturing overhead per machine-hour

= $294,000 ÷ 70,000 + $2.30

= $4.20 + $2.30

= $6.50 per machine-hour

Therefore, all the other information that is given are irrelevant. Hence, ignored it

5 0
3 years ago
Antonio works for a textbook publisher. However, his dream is to establish a home-based business providing his services to a var
yKpoI14uk [10]

Answer:

True

Explanation:

Because the reason is that the micropreneur is a person who sets up his own business which is very small enough. The micropreneur also manages its own business as well. The risks associated with the business is also bear by the employee as well. So in the nutshell, a micropreneur is very small business with a very small risks associated with the business. The examples includes of freelancers who are not commited to any employer for long term and is self employed. Contracts the work and deliver the work within the time agreed.

7 0
4 years ago
In reviewing your Summary Account Activity (#1), you notice FEES CHARGED of $69.45. This fee was assessed on your account for th
Norma-Jean [14]

Answer:

The correct option will be a. Late Payment Fee

Explanation:

A late payment fee also know as late charge is a charged to a borrower who misses paying at the stipulated payment date based on the agreement. For you to avoid paying that fees, ensure that you pay at least the minimum amount by the due date. So among all fees stated, all are charges made by the bank, but the late charge fee is not included until u failed to make payment on time, while others are fixed charges put in place by the banks.

6 0
3 years ago
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