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Rudiy27
3 years ago
6

Concord Corporation uses the percentage-of-receivables basis to record bad debt expense and concludes that 4% of accounts receiv

able will become uncollectible. Accounts receivable are $421,300 at the end of the year, and the allowance for doubtful accounts has a credit balance of $2,921. (a) Prepare the adjusting journal entry to record bad debt expense for the year. (b) If the allowance for doubtful accounts had a debit balance of $870 instead of a credit balance of $2,921, prepare the adjusting journal entry for bad debt expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Business
1 answer:
brilliants [131]3 years ago
5 0

Explanation:

The journal entries are shown below:

a. Bad debt expense A/c Dr  $13,931

                To Allowance for doubtful debts $13,931

(Being bad debt expense is recorded)

It is computed below:

= $421,300 × 4% - $2,921

= $13,931

b. a. Bad debt expense A/c Dr  $17,722

                To Allowance for doubtful debts $17,722

(Being bad debt expense is recorded)

It is computed below:

= $421,300 × 4% + $870

= $17,722

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The normal balances of sales, sales discounts, and sales returns and allowances are ________. debit, credit, and credit, respect
Y_Kistochka [10]
<h3><u>Answer;</u></h3>

credit, debit, and debit, respectively

<h3><u>Explanation</u>;</h3>

Normal balance of sales; Credit

Normal balance of sales discount; Debit

Normal balance of sale returns and allowances; Debit

  • A normal balance is the expectation that a particular type of account will have either a debit or a credit balance.
  • The normal balance of sales is credit.
  • The sales returns and allowances account is subtracted from sales because these accounts have the opposite effect on net income. Therefore, sales returns and allowances is considered a contra‐revenue account, which normally has a debit balance.
  • The account Sales Discounts is referred to as a contra-revenue account. Therefore;  its is debit balance.
5 0
3 years ago
If the USA could produce 1 ton of potatoes or 0.5 tons of wheat per worker per year, while Ireland could produce 3 tons of potat
Anuta_ua [19.1K]

Answer:

A. The USA specializes in potatoes because of its comparative advantage in producing potatoes.

Explanation:

US         1 ton of potatoes or 0.5 tons of wheat = 2

Ireland  3 tons of potatoes or 2 tons of wheat = 1,5

8 0
3 years ago
The only variable input a janitorial service firm uses to clean offices is workers who are paid a​ wage, w, of ​$88 an hour. Eac
slamgirl [31]

Answer:

Answer : Average Marginal Cost, Marginal Cost = $2

The total cost per hour of the janitorial service firm = $32

Explanation:

The janitorial firm only uses labour as an input to clean offices and there are no fixed costs. This implies that the total cost is only the variable cost.

Each worker can clean 4 offices in an hour, therefore the output of each labour is 4units per office cleaned. The price/wages paid to each worker isb $8 per hour.

The total cost per hour of the janitorial service firm is $8x4 = $32 (wxq)

Now to clean one more office, the time required will be 15minuites, because each worker can clean 4 offices in an hour. To clean one more office , each worker will be paid $2($8/4)

The variable cost/total cost, average variable cost and the marginal cost of cleaning one more office will be

Variable cost =w.q = 2q

Average Variable Cost = VC/q = 2q/q = $2

sine the marginal cost also varies directly as the average marginal cost , the Marginal Cost is $2

3 0
3 years ago
Nu Company reported the following pretax data for its first year of operations. Net sales 2,910 Cost of goods available for sale
kozerog [31]

Answer:

$434

Explanation:

Net sales                     = $2,910

-Cost of goods sold    = $1,560 (Working)

=Gross profit                = $1350

-Operating expenses  = $730

=Profit before Tax        = $620

-Tax 30%                      = $186

=Net Profit/Net Income= $434

<u>Working</u>

Cost of goods sold = Cost of goods available for sale - Closing Inventory if LIFO is elected

Cost of goods sold = 2,430 - 870 = 1560

5 0
3 years ago
Read 2 more answers
Kulka Corporation manufactures two products: Product F82D and Product T05P. The company uses a plantwide overhead rate based on
aleksandr82 [10.1K]

Answer:

Total manufacturing overhead cost for T05P <u>$</u>303,000

Explanation:

Using the ABC system, the amount of total manufacturing overhead cost would be assigned to Product T05P is:

1. 4,000 / 9,000 machine hours x $180,000.....$80,000

2. 90 / 250 set ups x $125,000............................$45,000

3. 1 / 2 products x $44,000....................................$22,000

4. 6,000 / 10,000 labor hours x $260,000......<u>$156,000</u>

Total manufacturing overhead cost for T05P <u>$303,000</u>

5 0
3 years ago
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