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Lilit [14]
3 years ago
10

Net sales for the month are $800,000, and bad debts are expected to be 1.5% of net sales. The company uses the percentage-of-sal

es basis. If the Allowance for Doubtful Accounts has a credit balance of $15,000 before adjustment, what is the balance after adjustment
Business
2 answers:
Mama L [17]3 years ago
8 0

Answer:

The balance of the Allowance for Doubtful Accounts after adjustment is $27,000.  This represents 1.5% of $800,000 net sales (to be charged to bad debt expense for the month) plus the credit balance of $15,000.

Explanation:

An Allowance of Doubtful Accounts is established at the same period when sales take place since an entity is not certain of the amount it will eventually receive from its credit customers.  This allowance is an estimate for bad debts.

Using the percentage-of-sales basis, the company can provide in advance an educated guess of probable bad debts to be incurred using an established rate.

Dmitriy789 [7]3 years ago
4 0

Answer:

$27,000

Explanation:

Allowance for doubtful accounts before adjustment       $15,000

Allowance provided for the month;

$800,000*1.5%                                                                     $12,000

Closing balance for Doubtful Accounts                             $27,000

The allowance for doubtful accounts is provided on net sales basis therefore sales are multiplied with %  of bad debt allowance given in question.

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kogti [31]

Answer:ok

Explanation:

8 0
3 years ago
The annual depreciation taken on a vehicle totals $4,400. The vehicle has been in service for three full years and the adjusting
KonstantinChe [14]

Answer:

Depreciation expense =  $4,400

Accumulated depreciation = $13,200

Explanation:

Depreciation: The depreciation is the amount which decreases the value of the asset. It can be by obsolescence, usage, tear and wear, etc.

The annual depreciation is given i.e. $4,400 which will be charged in depreciation expense whereas the accumulated depreciation would be equal to

=  Annual Depreciation × useful life

= $4,400 × 3

= $13,200

5 0
3 years ago
On September 30, 2021, Bricker Enterprises purchased a machine for $200,000. The estimated service life is 10 years with a $20,0
vagabundo [1.1K]

Answer:

$38,000

Explanation:

Double-declining-balance method used its ratio by computing depreciation expense. By multiplying it against original cost. To get ratio we simply divide 100% over the life of an asset times 2.

100% / 10 years x 2 = 20%

First, we will compute the 2021 depreciation for us to know our base amount on year 2022.

$200,000 x 20% = $40,000 x3/12 = $10,000

we prorate the annual depreciation expense because part of it is applicable to 2021 and 2022.

For year 2022, we have two ways to compute.

First:

$200,000 x 20% = $40,000 x 9/12 = $30,000 (the portion of the first year’s depreciation that’s for January 1, 2022 to September 30,2022), plus

$200,000 - $40,000 = $160,000 (year 2 net book value)

$160,000 x 20% = 32,000 x 3/12 = $8,000 (portion of second year’s depreciation that for October 01, 2022 to December 31, 2022)

Or second, an alternative way to compute,

2021

$200,000 x 20% = $40,000 x 3/12=$10,000

2022

$200,000 - $10,000 = $190,000 (Net book value)

$190,000 x 20% = $38,000

*Residual value is ignored in computing depreciation expense under double-declining-balance method.

7 0
3 years ago
Jamie works as a salesperson at a car dealership. He takes his sales very seriously. After selling a car to a customer, he waits
Alika [10]

Answer:

cognitive dissonance

Explanation:

Cognitive dissonance -

It is a type of mental stress which is felt by a person , who have two or more contradictory ideas or beliefs regarding any action , is known as cognitive dissonance .

This problem increases due to any new idea or new approach .

hence , from the question , Jamie , being a good salesperson ,  after selling the car , wait at least for a week and then call the customer to to insure them for their good decision .

Hence , Jamie is trying to reduce cognitive dissonance .

7 0
3 years ago
What can be learned about ancient greeks from this passage? check all that apply<br><br>​
olga55 [171]

Answer:

the greeks were powerful people at a time then got overpowered by athens and romans but that will change

Explanatin

5 0
3 years ago
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