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sveta [45]
3 years ago
7

Which of the following statements is correct? The journal entry to record bad debt expense requires a debit to bad debt expense

and a credit to accounts receivable. The journal entry to record bad debt expense requires a debit to bad debt expense and a credit to allowance for doubtful accounts. The journal entry to record the write off of an uncollectible account receivable requires a debit to bad debt expense and a credit to accounts receivable. The journal entry to record the write off of an uncollectible account receivable requires a debit to bad debt expense and a credit to allowance for doubtful accounts.
Business
1 answer:
boyakko [2]3 years ago
4 0

Answer:

This first statement it's to record an estimation of uncollectible accounts

  • The journal entry to record bad debt expense requires a debit to bad debt expense and a credit to allowance for doubtful accounts.

Explanation:

When the company determined the percentage of total amount of accounts receivables as uncollectible, the journal entry required is Bad Expenses (debit) with Allowance for Uncollectible Accounts (credit)

At the moment of the write-off as the expenses were before recognized we only use the Allowance for Uncollectible Accounts (Debit) with Accounts Receivable (Credit), with this we are recognizing the uncollectible credit of the company.

The other way it's to write-off directly the bad debts at the moment decided that the credit are uncollectible, the total amount  it's reported as bad debt expenses which affect negativly the income statement and the accounts receivable are reduce in the same amount, less assets.

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One of Stine Company’s activity cost pools is machine setups, with estimated overhead of $300000. Stine produces sparklers (400
Lynna [10]

Answer:

$120,000

Explanation:

In activity based costing, cost is allocated to each unit/department based on activities. In other words, the more the level of activities a unit/department is involved in, the more the cost that will be allocated to that unit and vice versa.

Given that Stine produces sparklers (400 setups) and lighters (600 setups), machine setup cost pool should be assigned to sparklers will be

= (400/(400 + 600)) × $300000

= $120,000

7 0
3 years ago
Impact of population growth on environmental degradation​
larisa [96]

Answer:

Explanation:

Population growth may be described in simple terms as the rate at which the number of people residing in a particular country is increasing or multiplying. Some states or countries have a higher population figure than the other and also higher rate of growth. As population increases, the resources available to people in that community suffers as the burden will also grow. The environment also will also take its own share of the effects as overcrowding seems to creep in together with increased burden on environmental resources and infrastructure. If proactive measures aren't taken in other to boost resources and infrastructure as indaquate handling of population growth will almost always result in environmental and infrastructure degradation or decline.

6 0
2 years ago
An inexperienced accountant for Cheyenne Corp. showed the following in the income statement: income before income taxes $371,000
sveta [45]

Answer:

An correct statement was prepared for a comprehensive income which is given below.

Explanation:

Solution

Given that:

                                  Cheyenne Corporation              

          Correct Statement  of Comprehensive/General Income

Income before income taxes           $371,000

The less Tax ($371,000 * 35%)         $129,850

The Net Income                                                         $241,150

Other Comprehensive income

Unrealized profit on present for

sales securities, net of tax                                          $57,655

The comprehensive income

($241,150 +$57,655)                                                    $298,805      

Note:

The Unrealized profit on present for sales securities, net of tax is given as

=($88,700 * (100% -35%))

=$88,700 * 65%

=$57,655    

6 0
3 years ago
Sheffield Corp. had the following accounts and balances: Accounts payable $28300 Equipment $34800 Accounts receivable 4550 Land
ser-zykov [4K]

Answer:

The balance on the building account is $44,200

Explanation:

The total value of the right hand side must equal the left hand side of a balance sheet. This means the total asset must equal liability plus shareholder equity.

Total Asset                           $

Equipment                      34,800  

Accounts receivable        4,550  

Land                                34,700  

Buildings                           ?

Cash                          <u>      14,750      </u>                

                                        <u>      88,800      </u>

 

Total Liability and Equity            $

Accounts payable                     28,300  

Unearned service revenue        9,700  

Stockholder's equity               <u>  95,000    </u>

 Total Liability and Equity    <u> 133,000</u><u>      </u>            

Buildings  =  Total Liability and Equity - Total Asset  

                        =   $133,000 - $88,800 = $44,200

The balance on the building account is $44,200

6 0
3 years ago
On July 1, a company sells 8-year $250,000 bonds with a stated interest rate of 6%. If interest payments are paid annually, each
SIZIF [17.4K]

Answer:

The correct answer is "$15,000".

Explanation:

Given:

Value,

= $250,000

Interest rate,

= 6%

The Interest Payment will be:

Value\times Interest \ rate

= 250,000\times 6%

= 15,000 ($)

6 0
2 years ago
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