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
inessss [21]
3 years ago
8

During 2021, its first year of operations, a company provides services on account of $257,000. By the end of 2021, cash collecti

ons on these accounts total $131,000. The company estimates that 12% of accounts receivable will be uncollectible. Record the adjustment for uncollectible accounts on December 31, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
Business
1 answer:
Dmitrij [34]3 years ago
4 0

Answer:

Debit Bad debt expense $15,120

Credit Allowance for doubtful debt $15,120

Being entries to record estimated bad debts

Explanation:

When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.  

To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.

Where a debit that had previously been determined to have gone bad gets settled, debit cash and credit bad debt expense.

Account receivables balance as at year end

=  $257,000 - $131,000

= $126,000

Allowance for doubtful debt = 12% * $126,000

= $15,120

You might be interested in
Your next task is to provide a pricing recommendation for the bookshelf system. The product comes with five equal-length finishe
AlexFokin [52]

Answer:

Sales Price Per Unit = $ 110

Explanation:

Break Even Sales Volume in Dollars  =

Break Even Sales Volume in Dollars= Fixed Costs/ 1- (variable Costs/ Sales)

Break Even Sales Volume in Units = Fixed Costs/ Contribution Margin per Unit

On Rearranging the above given formula

Contribution Margin per Unit = Fixed Costs/ Break Even Sales Units

Sales Price per Unit  - Variable Price Per unit =$150,000/2500

Sales Price Per Unit - $ 50= 60

Sales Price Per Unit = 60+ 50= $ 110

6 0
4 years ago
Read 2 more answers
When a tax is placed on the buyers of lemonade, the a. buyers bear the entire burden of the tax. b. sellers bear the entire burd
Zina [86]

When a tax is imposed on lemonade buyers, the burden of the tax will be shared by the buyers and the sellers, however the distribution of the burden is not always equal.

<h3>when a tax is imposed on product purchasers?</h3>

The supply curve is shifted by a tax paid by sellers, whereas the demand curve is shifted by a tax paid by buyers. Regardless of who pays the tax, the result is the same. With a tax on a good, consumers pay more, sellers are paid less, and there are fewer sales overall.

<h3>What is the tax split between buyers and sellers?</h3>

The cost of a sales tax is split between buyers and sellers under the scenario of demand and supply curves with normal shapes. The ratio of supply and demand elasticity determines how much of a tax will fall on either the buyers or the sellers, or both.

learn more about tax is imposed on product here

<u>brainly.com/question/15515844</u>

#SPJ4

4 0
2 years ago
Any unamortized premium is reported on the balance sheet
pychu [463]
B. As an addition to the face amount of the bonds
7 0
3 years ago
Many critics argue that government efforts to regulate industries have caused which of the following?
Georgia [21]

Answer:

inefficiencies

Explanation:

The competitive market is characterized by competition between companies for market share according to sales price. This is beneficial to the consumer, who will pay a lower price. The government acts as a market regulator to curb collusion and to ensure the origin and quality of products.

Critics of regulation complain that regulation removes market efficiency mechanisms, as companies have to comply with a series of regulatory criteria that raise production and marketing costs, which makes markets less efficient. This is a fragile argument, as history is full of cases of collusion and abusive practices that harm consumers. Regulation is necessary for companies to be compelled to always act in an appropriate manner. An example of the importance of regulation is the requirement for nutritional composition on food labels so that consumers have the information about what they are consuming.

5 0
3 years ago
Read 2 more answers
Lead indicators guide management to: Multiple Choice pursue identical strategies as those implemented with lag indicators. take
zheka24 [161]

Answer:

take actions now that will have positive effects on organizational performance in the future.

Explanation:

Lead indicators can be defined as an economic indices such as level of company stock prices or corporate profits, which usually changes before any significant corresponding change in the state of an economy. Thus, leading indicators serves as leaders or drivers for a business firm or organization.

Generally, lead indicators guide management to take actions now that will have positive effects on organizational performance in the future because they are variables that corresponds to a future variable of interest.

5 0
3 years ago
Other questions:
  • Which is an example of outsourcing?
    7·1 answer
  • Many businesses have a(n) __________, which is a password-protected network that uses web-based technologies for employee collab
    12·1 answer
  • LO 7.4A company has prepared the operating budget and the cash budget. It is now preparing the budgeted balance sheet. Identify
    15·1 answer
  • Sales ReturnsWhich of the following statements is true relating to the allowance for sales returns?a. Sales returns is treated a
    6·1 answer
  • A customer has an individual cash account, an individual margin account, a joint cash account with his wife, and a custodial acc
    15·1 answer
  • One day, Barry the Barber, Inc., collects $500 for haircuts. Over this day, his equipment depreciates in value by $80. Of the re
    13·1 answer
  • Klean Fiber Company is the creator of Y-Go, a technology that weaves silver into its fabrics to kill bacteria and odor on clothi
    12·1 answer
  • Charlie, a sales executive with Pitt Alloy, Inc., learns of undisclosed company plans to produce a new type of alloy. Charlie le
    9·1 answer
  • Define quality and list and discuss in brief the various dimensions of quality in operations.
    14·1 answer
  • A situation in which both unemployment and inflation rates are high is known as ______.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!