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
creativ13 [48]
3 years ago
9

Kingbird, Inc. uses the percentage-of-receivables basis to record bad debt expense and concludes that 3% of accounts receivable

will become uncollectible. Accounts receivable are $429,500 at the end of the year, and the allowance for doubtful accounts has a credit balance of $2,950. (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 $2,950, prepare the adjusting journal entry for bad debt expense.
Business
1 answer:
antoniya [11.8K]3 years ago
6 0

Answer:

(a) The adjusting journal entry to record bad debt expense for the year:

Debit Bad debt expense  $5,640

Credit Allowance for doubtful accounts  $5,640

<em>(To record bad debt expense)</em>

(b) If the allowance for doubtful accounts had a debit balance of $870 instead of a credit balance of $2,950, The appropriate journal entries are:

Debit Bad debt expense $9,460

Credit Allowance for doubtful accounts  $9,460

<em>(To record bad debt expense)</em>

Explanation:

To arrive at the bad debt expense for Kingbird, Inc., we simply need to calculate 3% of accounts receivable, as follows:

2% of $429,500 = $8,590

Since the allowance for doubtful accounts has a credit balance of $2,950, the bad debt expense will be: $8,590 - $2,950 = $5,640. The appropriate journal entries are as provided above.

However, if the allowance for doubtful accounts had a debit balance of $870 instead of a credit balance of $2,950, the bad debt expense will be: $8,590 + $870 = $9,460. The addition is necessary in order to reinstate the allowance account to $8,590. The appropriate journal entries are as provided above.

You might be interested in
You are taking a $5000 loan. You will pay it back in four equal amounts, paid every 6 months starting 5 years from now. The inte
mr Goodwill [35]

Answer:

Following are the solution to the given point:

Explanation:

Calculating the value of the effective interest rate:

Formula:

\text{Effective interest rate} =\frac{\text{annual nominal rate of interest}}{\text{compound year}}

                                  =\frac{12}{2} \\\\ =6\%

Calculating the value of Effective annual rate of interest:

=(1+ \text{The effective rate})^{\text{(compound number )}} -1

=(1+0.06)^2 -1\\\\=(1.06)^2 -1\\\\=1.1236-1\\\\=0.1236\\\\=12.36 \%

Calculating the Amount in each semiannual payment:

= 5000 \times (\frac{F}{P}, 6\% ,9) \times (\frac{A}{P}, 6\%,4)\\\\= 5000 \times  1.689479 \times  0.288591\\\\= 2437.85

Calculating the value of the total interest paid:

= 2437.85 \times 4 - 5000\\\\= 9751.40-5000\\\\ = 4751.40

4 0
2 years ago
Miklos, who does not understand english, is asked by carl to sign a piece of paper that carl says is an application to open a ba
AlexFokin [52]
C) <span>fraud in the inducement.</span> is your answer. Hope this helps!
8 0
3 years ago
How important are the development of the many management theories<br>​
sergeinik [125]

Answer:

Explanation:

Management theories help organizations to focus, communicate, and evolve. Using management theory in the workplace allows leadership to focus on their main goals. When a management style or theory is implemented, it automatically streamlines the top priorities for the organization.

3 0
2 years ago
The journal entry to transfer completed products from production to finished goods inventory includes which two of the following
Talja [164]

Answer:

Debit finished goods inventory

Credit Work in Process Inventory

Explanation:

The journal entry that is required to transfer the completed products from the production stage to finished goods inventory which is the amount of goods in the inventory that have been produced and as well is available and ready for customer to buy will includes to Debit finished goods inventory and to Credit Work in Process. Inventory

Debit finished goods inventory

Credit Work in Process Inventory

(Being to record finished goods inventory)

7 0
3 years ago
The ____________ of the note is the one that signed the note and promised to pay at maturity. the (maker/payee) of the note is t
Aleksandr [31]

The (maker/signer) of the note is the one that signed the note and promised to pay at maturity. The (maker/payee) of the note is the person to whom the note is payable.

A note that the maker has neglected to settle upon maturity is referred to as a dishonored note. The note is removed from notes receivable since it has matured, and the payee or holder reports the amount owed in accounts receivable. At the note's maturity date, the maker is obligated to pay the principal and interest.

Bad debt costs. Customers with (Bad/Invalid)(Collectible/Debts) accounts fail to honor their payment obligations. It is regarded as a cost associated with selling on credit. An amount owed by another party is known as a receivable.

To learn more about maturity from the given link.

brainly.com/question/28039417

#SPJ4

7 0
1 year ago
Other questions:
  • Pak Co.'s professional fees expense account had a balance of $82,000 at December 31, Year 1, before considering year-end adjustm
    14·1 answer
  • A dance studio and a dancewear manufacturer decide to combine. this type of merger is called a ________.
    9·1 answer
  • Free-market economies have _____ .
    14·2 answers
  • An equal partnership is formed by Rita and Gerry. Rita contributes cash of $10,000 and a building with a fair market value of $1
    9·1 answer
  • Rug Designs Inc, a manufacturer of large area rugs, markets its products throughout the United States using a network of regiona
    13·1 answer
  • Which of these is not a major characteristic of a plant asset?
    9·1 answer
  • IRS regulations govern the computation of gross profit for GAAP. computation of net income for GAAP. computation of net income f
    9·1 answer
  • Cullumber Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures we
    8·1 answer
  • 5dcual es la tarea del ser humano?​
    7·2 answers
  • if government tax policy requires peter to pay $15,000 in tax on annual income of $200,000 and paul to pay $10,000 in tax on ann
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!