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
liubo4ka [24]
3 years ago
9

Prepare the journal entry to record bad debt expense assuming Novak Company estimates bad debts at (a) 4% of accounts receivable

and (b) 4% of accounts receivable but Allowance for Doubtful Accounts had a $1,470 debit balance. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Business
1 answer:
Novay_Z [31]3 years ago
8 0

Additional information:

Novak Company reports the following financial information before adjustments. Dr. Cr. Accounts Receivable $155,400 Allowance for Doubtful Accounts $3,890 Sales Revenue (all on credit) 800,700 Sales Returns and Allowances 50,330

Answer:

net credit sales = total sales revenue - sales returns and allowances = $800,700 - $50,330 =  $750,370

accounts receivables = $155,400

allowance for doubtful accounts = $3,890 (credit balance)

A) estimated bad debts = 4% of accounts receivables = 4% x $155,400 = $6,216

since the current balance of allowance for doubtful accounts is $3,890, then the adjusting entry should be = $6,216 - $3,890 = $2,326:

Dr Bad debt expense 2,326

    Cr Allowance for doubtful accounts 2,326

B)  estimated bad debts = 4% of accounts receivables = 4% x $155,400 = $6,216

since the current debit balance of allowance for doubtful accounts is $1,470, then the adjusting entry should be = $6,216 + $1,470 = $7,686:

Dr Bad debt expense 7,686

    Cr Allowance for doubtful accounts 7,686

You might be interested in
What is the purpose of annotating mail?
NARA [144]
To annotate something is to look over. You need to re-check your mail before you send it off. Make sure the address is right. Make sure everything on there is correct before you send it off. The people that deliver the mail need to make sure they are giving the right person the right mail.<span />
3 0
3 years ago
g On January 2, 2010, Howdy Doody Corporation purchased 12% of Ranger Corporation's common stock for $50,000 and classified the
Aliun [14]

Answer:

$7,200

Explanation:

The calculation of income that should be presented in the income statement is shown below:-

Dividend Received = Given percentage × Paid dividend

= 12% × $60,000

= $7,200

Therefore for computing the income that should be presented in the income statement we simply applied the above formula.

Therefore the above is the answer

8 0
3 years ago
Companies like hewlett-packard and frito-lay routinely monitor blogs to gain insight into
elena-s [515]

customer complaints and suggestions

5 0
4 years ago
In the Challenge​ Solution, would it make a difference to the analysis whether the​ lump-sum costs such as registration fees are
Assoli18 [71]

Answer:

The answer is "nothing changes because the fees would still be fixed costs."

Explanation:

When annual expenses throughout the cash payment are recovered, a long-term delivery curve of both the company will change.

When the lump sum costs are still only obtained once, the long-term supply curve shall be changed.

It is because, regardless of how it is paid, this tv license has little effect mostly on low cost but only a fixed cost. Its amount of output relies on how well the cost of the profit changes. Provided these are fixed costs, their performance doesn't matter.

5 0
2 years ago
A bill that deals with such a diverse set of unrelated issues as environmental issues, tax issues, and criminal justice issues i
Leona [35]

A bill that deals with such a diverse set of unrelated issues as environmental issues, tax issues, and criminal justice issues is likely to be an Omnibus bill

<h3>What is an Omnibus Bill?</h3>

An omnibus bill is a bill that covers divers issues which is coupled into one document.

It is a single document which is accepted in a single vote by a legislature but encompasses several measures into one or combines diverse subjects.

Due to their large size and scope, omnibus bills limit opportunities for debate and scrutiny.

Learn more about Omnibus Bill at brainly.com/question/18667507

3 0
2 years ago
Other questions:
  • The number of new domestic wind turbine generators installed each year in a particular country has been forecast to increase at
    6·1 answer
  • Below are several transactions for Scarlet Knight Corporation. A junior accountant, recently employed by the company, proposes t
    10·1 answer
  • What is the basic difference between liability insurance and collision insurance?
    15·1 answer
  • Imprudential, Inc., has an unfunded pension liability of $800 million that must be paid in 16 years. To assess the value of the
    10·2 answers
  • It is possible that a(n) ________ vertical marketing system can be more formally structured through strategic alliances and part
    11·1 answer
  • The May transactions of Bramble Corp. were as follows:
    10·1 answer
  • Suppose that Brazil imports semiconductors from the United States. The free market price is $30.00 per semiconductor. If the tar
    7·1 answer
  • It is easier to cut with a sharp knife then what a blunt one​
    5·2 answers
  • Sunnyside Travel, Inc. is a travel agency that specializes in destination wedding vacation packages. It has packages ranging fro
    11·1 answer
  • Journalize the following sales transactions for Straight Shot Archery using the periodic inventory system. E (Record debits firs
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!