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
On a linear demand curve, if the price is low and the quantity demanded is high, demand is _____ in that region and a price incr
kirill [66]

On a linear demand curve, if the price is low and the quantity demanded is high, demand is Inelastic in that region and a price increase will cause an increase  in total revenue

Revenue in accounting refers to the entire amount of money made through the sale of products and services that are essential to the company's core operations. [1] The term "commercial revenue" can also refer to sales or turnover. Some businesses make money from royalties, interest, or other fees. [2] The term "revenue" can mean income in general or the total amount of money earned over a certain time period, as in "Last year, Company X had revenue of $42 million." The general definition of profits or net income is total revenue less total expenses for a specific time period. Revenue is a component of the Equity section of the balance sheet in accounting, and revenue raises equity.

learn more about revenue:

brainly.com/question/8645356

#SPJ4

8 0
1 year ago
During 2017, Benson purchased $1,450,000 of raw materials, incurred direct labor costs of $250,000, and incurred manufacturing o
grigory [225]

Answer:

Raw Materials transferred to production during 2017 $1,466,000

Explanation:

The computation of the raw material transferred to production is given below:

Opening raw material 2016 $80,000

Add : Purchase of Raw material $1,450,000

Less Closing Stock raw material 2017 $64,000

Raw Materials transferred to production during 2017 $1,466,000

Hence, the same should be relevant

8 0
2 years ago
What is the 2016 repayment limitation for a single taxpayer who has income at a 350% poverty level?
Mademuasel [1]
For taxpayers with household income below 400% of the FPL there is a table of repayment limitation.
For at least 300% but not less than 400% ( for example: 350% ) it is $1,250.
Answer: $1,250.
7 0
3 years ago
Which of the command systems would be the most appropriate when there are six victims at a mvc?
Olin [163]

Singular command. In a motor vehicle accident with multiple victims, the scene will be chaotic and having a single, clear leader will best help resolve the situation.

5 0
3 years ago
Main Street Ice Cream Company uses a plantwide allocation method to allocate overhead based on direct labor-hours at a rate of $
attashe74 [19]

Answer:

$1,702 , $1,497, and $1,957

Explanation:

The computation of the total cost is shown below:

Particulars Strawberry Vanilla Chocolate

Direct Labor $766          $841  $1,141

Direct Material  $816          $516  $616

Overhead   $120               $140        $200

                        (60 × 2)           (70 × 2)   (100 ×2)

Total Cost   $1,702           $1,497    $1,957

We simply added the direct labor cost, direct material cost and the overhead cost so that the total cost could come

8 0
3 years ago
Other questions:
  • Production costs activity use the table below with page 4 of the fasttrack to complete the activity. first shift capacity first
    10·1 answer
  • Brand ambassadors are volunteers spreading a company's brand message, while brand evangelists are paid employees using potential
    14·1 answer
  • How does CSS differ from HTML?
    5·1 answer
  • Dom, an EZ Baked Goods salesperson, follows Flora, a salesperson for Goody Pastries, Inc, as she attempts to make sales to food
    7·1 answer
  • Riley Company received a notice with its bank statement that the bank had collected a note receivable for $5,000 plus $150 of in
    8·1 answer
  • Ivor borrowed $420,000 from Lear Bank. At Lear's request, Ivor entered into an agreement with Ash, Kane, and Queen for them to a
    12·1 answer
  • Dana believes that a new phone to be sold by Ear Fruit Inc. will become the most popular phone in the global market. Dana enters
    10·1 answer
  • Discuss the relationship between a fishing business and a supermarket <br>​
    6·1 answer
  • Kellogg Co. (K) recently earned a profit of $2.22 earnings per share and has a P/E ratio of 19.35. The dividend has been growing
    12·1 answer
  • Can you empathize with customers concerns.
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!