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
Aleks04 [339]
3 years ago
8

Bramble Company uses the percentage of receivables method for recording bad debt expense. The accounts receivable balance is $59

8000 and credit sales are $2620000. Management estimates that 5% of accounts receivable will be uncollectible. What adjusting entry will Bramble Company make to record bad debt expense if the Allowance for Doubtful Accounts has a $4800 credit balance before adjustment?
Business
1 answer:
shusha [124]3 years ago
7 0

Answer and Explanation

Given:

Accounts receivable balance = $598,000

Percentage of receivables that are uncollectible = 5% or 0.05

Uncollectible receivables = 0.05 × 598,000 = $29,900

Adjusting journal entry to record bad debt expense is:

Particulars                                          Debit              Credit

Bad debts expense                            XXXXX

     Allowance for doubtful debts                               XXXXX

(Being bad debts incurred)

Noe, Allowance for doubtful debts has a credit balance of $4,800.

Bad debt incurred = 29,900 - 4,800 = $25,100

So adjusting entry :

Particulars                                          Debit              Credit

Bad debts expense                            $25,100

     Allowance for doubtful debts                             $25,100

(Being bad debts incurred)

You might be interested in
In the process of reconciling its bank statement for January, Maxi's Clothing's accountant compiles the following information:
Troyanec [42]

Answer:

$4,469

Explanation:

Calculation for what The adjusted cash balance per the books on January 31 is

Using this formula

Adjusted cash balance = cash balance per books -bank service charges - EFT automatically deducted - NSF Check

Let plug in the formula

Adjusted cash balance= $5325 - $31 -$500 -$325

Adjusted cash balance= $4,469

Therefore The adjusted cash balance per the books on January 31 is $4,469

5 0
3 years ago
A demand curve:
Arada [10]

Answer:

3. indicates the quantity demanded at each price in a series of prices.

Explanation:

The demand for a product can be described as the quantity that buyers are willing and able to buys at a given price or different prices. As per the law of demand, an indirect relationship exists between the price and demand for a product. This relationship can be expressed in a graph format known as a demand curve or as a table format known as the demand schedule.

A demand curve is downward sloping. It demonstrates how demand varies at different prices.  A change in price cause movement along the demand curve. Low price results in high demand, while high prices result in low demand.

7 0
3 years ago
Based on the following data for the current year, what is the inventory turnover?
GenaCL600 [577]

Answer:

The answer is D.

Explanation:

Inventory turnover is a measure of the number of times inventory is being sold or used during a given period of time.

A high inventory turnover means a company is selling goods very quickly and that demand for their product exists. Low inventory turnover means weaker sales and ing demand for a company's products.

Inventory turnover = Cost of goods sold/Average inventory

Average inventory is:

($110,000 + $90,000)/2

=$100,000

Therefore, inventory turnover ratio:

$270,00//$100,000

2.7

3 0
3 years ago
2. Liquidity Consider the relative liquidity of the following assets: Assets 1. The funds in a savings account 2. A bond issued
Alina [70]

Answer:

The answer is,

Asset

Most Liquid :  $5 bill

Second-Most Liquid : The funds in a savings account

Third-Most Liquid :  A bond issued by a publicly traded company

Least Liquid : Your house

The liquidity simply measures the ability to turn in to cash in a relatively short period of time. Cash at hand is the most liquid while property and other movable and immovable assets tends to be a bit difficult to be turned into cash quickly.

Explanation:

6 0
3 years ago
On October 1, 2017, Sharp Company (based in Denver, Colorado) entered into a forward contract to sell 330,000 rubles in four mon
Yuliya22 [10]

Solution:

Date             Account tides           Debit (S in ruble)      Credit (S in ruble)

                 and Explanation

Oct 1        Accounts receivable             96,600

                    Sales

          ( 210,000 ruble x $0.46)                                       96,600

Dec 31     Accounts receivable

           ( 50.49-50.46) x (210,000 ruble)   6,300

             Foreign Exchange gain                                       6,300

          Loss on forward contract            2079,21

                   Forward Contract

     (50.52-50.51) x 210,000 ruble =2,100

             2,100 x 0.9901= $2079.21                                2079.21

Jan31        Accounts receivable (LC U)       4,200

                   Foreign exchange gain

            (50.51-50.49) x 210,000 ruble                               4200

                     Foreign currency                 107,100

                 Accounts receivable

           (596.600-56,300-54,200)                                   107,100

                          Cash                              107,100

               Foreign cuuency (LCU)

                ($0.51 x210.000 ruble)                                      107,100  

6 0
3 years ago
Other questions:
  • Navigator sells GPS trackers for $50 each. It expects sales of 5,000 units in quarter 1 and a 5% increase each subsequent quarte
    10·1 answer
  • _____ refers to firms selling the right to use some aspect of their production processes, trademarks, or patents to individuals
    14·2 answers
  • Wolf Den Craft Beers projects that it will need​ $50 million in total assets to meet the sales projection of​ $65 million. The p
    6·1 answer
  • The fact that most people make some decisions based on intuition rather than calculation is: Select one: a. irrational, because
    9·1 answer
  • The following data for Romero Products Inc. are available:
    9·1 answer
  • What does the Judge usually say when things get crazy in the court room?
    9·2 answers
  • Destiny and Enzo engage in a business transaction. When a dispute arises, Destiny initiates a lawsuit against Enzo by filing a c
    10·1 answer
  • Please answer this question.
    13·1 answer
  • Among the top motivator driving corporation to engage in CSR includes all of the following reasons except
    5·1 answer
  • Alex has accepted an IT position at a new company, and will be leaving her current job in the IT department of a large company.
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!