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
olga nikolaevna [1]
3 years ago
15

Estimating Uncollectible Accounts and Reporting Accounts Receivable LaFond Company analyzes its accounts receivable at December

31, and arrives at the aged categories below along with the percentages that are estimated as uncollectible. Age Group Accounts Receivable Estimated Loss % 0-30 days past due $ 90,000 1% 31-60 days past due 20,000 2 61-120 days past due 11,000 5 121-180 6,000 10 Over 180 days past due 4,000 25 Total accounts receivable $ 131,000 The balance of the allowance for uncollectible accounts is $520 on December 31, before any adjustments. (a) What amount of bad debts expense will LaFond report in its income statement for the year? $Answer 0 (b) Use the financial statement effects template to record LaFond's bad debts expense for the year. Use negative signs with your answers, when appropriate. Balance Sheet Transaction Cash Asset + Noncash Assets = Liabilities + Contributed Capital + Earned Capital Record bad debts expense Answer 0 Answer 0 Answer 0 Answer 0 Answer 0 Income Statement Revenue - Expenses = Net Income Answer 0 Answer 0 Answer 0 (c) What is the balance of accounts receivable on it December 31 balance sheet? $Answer 0
Business
1 answer:
Delicious77 [7]3 years ago
6 0

Answer:

A. Bad debt expense workings

Estimated loss =

0 - 30 days 1% of $90,000 = $900

31 - 60 days 2% of $20,000 = $400

61 - 120 days 5% of $11,000 = $550

121 - 180 days 10% of $6,000= $600

Over 180 days 25% of $4,000 = $1,000

Total Estimated loss = $3,450

Pre-adjusted bal of Uncollectible debt Account = $520

Balance to reflect in the Financial statement will be adjusted to reflect $3,450 just computed.

Addition to the Expense will be $3,450 minus $520 = $2,930

B.

Financial statement Effect template

Cash Asset = -$2,930

+

Non - Cash Asset = $0

=

Liability = $0

+

Contributed Capital = $0

+

Earned Capital -$2,930

C.

Account Receivable as at Dec 31 = $131,000

Less Allowance for uncollectible debts total = -$3,450

Balance Account receivables = $127,550

Explanation:

LaFond Company

Bad debt expense are combination of both doubtful and uncollectible debts within a financial year.

A debt becomes doubtful based on previous trends around debt collections. From the question for example 0 - 30days aged debt is doubtful of 1% uncollectibility, and 31 - 60 days aged debt is 2% etc.

A debt is written off as bad if it is adjudged to be uncollectible.

You might be interested in
using a perpetual inventory system, what is recorded when a customer returns a product and gets the cash back and the product is
likoan [24]

A credit to cash, a debit to sales returns and allowances, a credit to inventory, and a debit to cost of goods sold are all recorded.

Perpetual inventory, commonly referred to as continuous inventory, is an inventory management system that uses software to automatically and constantly record each stock movement (such as purchases, returns, consumptions, and write-offs), keeping the system current at all times.

This contrasts with the need to manually update the system on a regular basis when utilizing spreadsheets or paper-and-pencil alternatives.

Barcodes, POS systems, radio frequency identification, and real-time reporting are used by perpetual inventory systems like MRP, ERP, or WMS software to track inventory movements and build a virtual trail of each transaction occurring in the physical inventory. This makes it possible to perform extremely accurate real-time inventory accounting, giving the business a current cost of goods sold at all times.

To learn more about perpetual inventory system from given link

brainly.com/question/25014592

#SPJ4

3 0
1 year ago
A new assessment tool does a good job of differentiating those who later will be depressed and those who will not be depressed,
Marina CMI [18]

Answer:

A. predictive validity.

Explanation:

The tool has predictive-validity because it can assess, or predict, out of a sample, which subjects will be depressed in the future, and which subjects will not, producing similar results to other tools that also measure depression, something that gives it credibility.

8 0
3 years ago
<img src="https://tex.z-dn.net/?f=%20%5C%3A%20%20%5C%3A%20%20%5C%3A%20%20%5C%3A%20%20%5C%3A%20%20%5C%3A%20" id="TexFormula1" tit
Novay_Z [31]

Answer:

market is a composition of systems, institutions, procedures, social relations or infrastructures whereby parties engage in exchange. While parties may exchange goods and services by barter, most markets rely on sellers offering their goods or services to buyers in exchange for money. It can be said that a market is the process by which the prices of goods and services are established. Markets facilitate trade and enable the distribution and allocation of resources in a society. Markets allow any trade-able item to be evaluated and priced. A market emerges more or less spontaneously or may be constructed deliberately by human interaction in order to enable the exchange of rights of services and goods. Markets generally supplant gift economies and are often held in place through rules and customs, such as a booth fee, competitive pricing, and source of goods for sale.

Explanation:

hope it helps.

have a great day

8 0
2 years ago
Read 2 more answers
Western Electric has 32,500 shares of common stock outstanding at a price per share of $80 and a rate of return of 12.95 percent
Sergio039 [100]

Answer:

c. 11.10%

Explanation:

Options are <em>"a. 10.29% b. 10.51% c. 11.10% d. 10.72% e. 11.49%"</em>

Market Value of Equity = $80 * 32,500

Market Value of Equity = $2,600,000

Market Value of Preferred Stock = $95.50 * 7350

Market Value of Preferred Stock = $701,925

Market Value of Debt = $407,000 * 1.115

Market Value of Debt = $453,805

Total Market Value = Market Value of Equity + Market Value of Preferred Stock + Market Value of Debt

Total Market Value = $2,600,000 + $701,925 + $453,805

Total Market Value = $3,755,730

kP = Annual Dividend / Current Market Price

kP = $7.90 / $95.50

kP = 0.082723

kP = 8.27%

WACC = [wD * kD * (1 - t)] + [wP * kP] + [wE * kE]

WACC = [(453,805/3,755,730) * 8.11% * (1 - 0.40)] + [(701,925/3,755,730) * 8.27%] + [(2,600,000/3,755,730) * 12.95%]

WACC = 0.59% + 1.55% + 8.96%

WACC = 11.10%

6 0
3 years ago
Access to local partner's knowledge and shared development costs and risks are advantages of which foreign market entry mode
balandron [24]
Joint ventures have access to local partner's knowledge and shared development costs and risks are advantages in this foreign market entry mode. A joint venture often gives companies access to new markets. Two or more companies come together to benefit themselves and stay their own company. 
4 0
2 years ago
Other questions:
  • You are waiting in the lobby of the office of your dream job. you brought along your resume, and a portfolio of work to demonstr
    15·1 answer
  • Wich type of financial institutions typically has a membership requirement ?
    11·2 answers
  • You have just received notification that you have won the $1.4 million first prize in the lottery. However, the prize will be aw
    6·1 answer
  • g If the velocity of money triples, while real GDP and money supply remain unchanged, in the long run, the price level:
    11·1 answer
  • You are given the following information about aggregate demand at the existing price level for an economy: (1) consumption = $50
    13·1 answer
  • In a small manufacturing facility, one welder is needed for every 200 hours of machine-hours or fewer in a month. The welder is
    15·1 answer
  • Jack Taylor started Enterprise Leasing on the premise that if he treated his customers and employees well, profits would follow.
    5·1 answer
  • Why is it very important to properly present the results of your analysis in a report
    11·1 answer
  • Wally owns 200 acres of land.Wally offers to sell the land to Robert for $1,500 per acre.Robert replies that he does not need 20
    11·1 answer
  • An oligopoly firm is similar to a monopolistically competitive firm in that A) both firms face the prisoner's dilemma. B) both o
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!