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
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

You might be interested in
Diversification can reduce or eliminate _______ risk.
makkiz [27]

Answer:

B

Explanation:

Diversification reduces portfolio risk by eliminating unsystematic risk for which investors are not rewarded. Investors are rewarded for taking market risk. Because diversification averages the returns of the assets within the portfolio, it attenuates the potential highs and lows

7 0
3 years ago
Read 2 more answers
SEND HELP PERSONAL FINANCE TIMED TEST
vodka [1.7K]

Answer:

are making a large purchase.

Explanation:

A mortgage is a long term debt. It takes at least five years to repay a mortgage. In practice, mortgages are issues for between 10 and 30 years.

Mortgages are ideal for purchases requiring a colossal amount of money. For example, the purchase of homes, land, plants, and equipment. The repayment of the amount borrowed to facilitate such purchases is spread over many years. This enables the borrower to repay the loan in affordable monthly installments.

4 0
3 years ago
why is currency held by the u.s. treasury, the federal reserve banks, commercial banks, and thrift institutions excluded from m1
Andrew [12]

The u.s. treasury, the federal reserve banks, commercial banks, and thrift institutions excluded According to the question, the "federal reserve system" is the organisation in charge of controlling the nation's money supply.

The central banking system of the United States of America is said to have a variety of duties to carry out. The main duties include keeping an eye on financial institutions, controlling the amount of money in the economy, acting as the government of the United States' fiscal agent, etc. As a result, its main goal is to ensure the financial and monetary systems are secure, flexible, and stable.A commercial bank purchases a Treasury bond from the Federal Reserve for $100,000. the amount of money available could rise by $100,000.The Federal Reserve buys and sells government assets to control interest rates and the availability of money. This activity is classified as open market activities.

To know more about U.S treasury visit:

brainly.com/question/29485988

#SPJ4

8 0
2 years ago
If the price of good A​ falls, then when the consumer makes his new​ utility-maximizing choice​ _______. A. the quantity of the
skad [1K]

Answer: Option (B) is correct.

Explanation:

Correct option: The marginal utility from consuming good A will be lower than before.

This due to the law of diminishing marginal utility. When the price of good A falls as result consumer will buy more quantity of good A. But according to the  law of diminishing marginal utility, as the consumers consumes more and more quantity of good, the utility derived from an additional unit goes on diminishing.

Therefore, the marginal utility from consuming good A will be lower than before.

4 0
4 years ago
Assume someone organizes all farms in the nation into a singleminusprice monopoly. As a​ result, the price consumers pay for foo
hodyreva [135]

Answer:

E. might rise or fall depending on whether the​ monopoly's marginal revenue curve lies above or below its demand curve.

Explanation:

In monopoly, the supply rule is the way how the farm will decide the price to sell the products in the market. This rule is simple, the price will be set where the demand curve cross the marginal revenue function, and not as perfect competition, where demand and supply demand cross. In monopoly the quantities are less thant perfect market situation, and the price is higher.

5 0
3 years ago
Other questions:
  • Olivia’s employer deducts an amount from her paycheck for the Medicare program. What type of withholding is being deducted from
    7·2 answers
  • One inherent risk to using lean philosophy is that companies are at higher risk of inventory shortage during volatile times such
    8·1 answer
  • Mary and David are partners who share profits and losses on a 3:1 basis. This means Mary receives 75% and David receives 25% of
    10·1 answer
  • Despite experiences of discrimination early on, Italians, Irish, and eastern European immigrants were incorporated into thecateg
    9·1 answer
  • RST Company produces a product that has a variable cost of $6 per unit. The company's fixed costs are $30,000. The product sells
    15·1 answer
  • portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 18%, while stock B has a standard de
    10·1 answer
  • Assume that an adjusting entry was made on November 30, 2018 for earned, but unpaid employee salaries of $260 which represented
    12·1 answer
  • What is one of the benefits of the current pattern of global trade?
    8·2 answers
  • Opportunity cost __. A) is always the value of the next best forgone opportunity B) can only be measured as a paid cost C) does
    9·1 answer
  • Alberton's supermarket prominently displays the prices of its brands side-by-side with prices you may pay at competing grocery s
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!