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OLga [1]
3 years ago
11

The Allowance for Bad Debts account has a credit balance of $ 5 comma 000$5,000 before the adjusting entry for bad debts expense

. Theâ company's management estimates that 22â% of net credit sales will be uncollectible for the year 2019. Net credit sales for the year amounted to $ 260 comma 000$260,000. What will be the balance of Allowance for Bad Debts on the Decemberâ 31, 2019 balanceâ sheet?
Business
2 answers:
lorasvet [3.4K]3 years ago
5 0

Answer:

62,200

Explanation:

The Allowance for Bad Debts account has a credit balance of $5,000 before the adjusting entry for bad debts expense. The company's management estimates that 22% of net credit sales will be uncollectible for the year 2019. Net credit sales for the year amounted to $260,000. The balance of Allowance for Bad Debts on the December 31, 2019 balance sheet would be 62,200.

GaryK [48]3 years ago
4 0

Answer:

62,200 allowance ending

Explanation:

allownce 5,000 credit

<u>Because the bad debt is calculate over the sales,</u> the bad debt expense is the result of that estimated, without considering the beginning balance of the allowance.

22% of net credit sales will be uncollectible:

260,000 x 22% = 57,200

<u>Now ending balance will be beginning + uncollectible for the period</u>

5,000 beginning

57,200 uncollectible for the period

62,200 allowance ending

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5 0
2 years ago
The Lynx Manufacturing Company produces components used in electronic toys. In fiscal year 2017, Lynx earned an accounting profi
Mice21 [21]

Answer:

The correct answer is option B.

Explanation:

In 2017, Lynx earned an accounting profit of $3 million.

Lynx's production facilities might have also been used to produce components for mobile phones, which would have generated $2 million in revenues and saved the company $500,000 in production costs.

The accounting profit involves only explicit costs. While economic profit includes both explicit as well as implicit cost.

Here, the implicit cost is the opportunity cost of producing toys components. Lynx could have earned greater profit if it produced components for mobile phone and also could have saved cost of production.

Economic profit

= accounting profit - implicit cost

= $3 million - ($2 million + $500,000)

= $3 million - $2.5 million

= $500,000

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6 0
3 years ago
Municipal bonds are issued by ____.
Rina8888 [55]
<span>C. state, county, and city governments

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3 0
3 years ago
Read 2 more answers
One Device makes universal remote controls and expects to sell 500 units in January, 800 in February, 450 in March, 550 in April
Reil [10]

Answer and Explanation:

The preparation of the production budget  and The total required production for the year is as follows

<u>                                                   One Device </u>

<u>                                                   Production budget</u>

<u>                                               For the first four months</u>

<u>Particulars        Jan             Feb             Mar            April              Year</u>

Expected

unit sales          500 units    800 units   450 units  550 units    

Add:

Ending

inventory          160 units     90 units      110 units   120 units

     ($800 × 20%)     ($450 × 20%)    ($550 × 20%)     ($600 × 20%)

Total

required units  660 units    890 units     560 units  670 units

Less:

Beginning

inventory         100 units      160 units     90 units       110 units

       ($500 × 20%)  ($800 × 20%)  ($450 × 20%)    ($550 × 20%)  

Required

production

units                 560 units     730 units     470 units     560 units     2,320 units

7 0
4 years ago
The minimum expected rate of return of the management from any project is referred to as the:A)The hurdle rate. B)The internal r
Sunny_sXe [5.5K]

Answer:

B

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6 0
3 years ago
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