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Zepler [3.9K]
3 years ago
11

Before year-end adjusting entries, Dunn Company's account balances at December 31, 2020, for accounts receivable and the related

allowance for doubtful accounts were $1,500,000 and $90,000, respectively. An aging of accounts receivable indicated that $125,000 of the December 31 receivables are expected to be uncollectible. The accounts receivable amount expected to be collected after adjustment for bad debt expense is
A. $1,465,000
B. $1,375,000
C. $1,285,000
D. $1,410,000
Business
1 answer:
navik [9.2K]3 years ago
7 0

Answer:

Option (B) is correct.

Explanation:

Given that,

Accounts receivables = $1,500,000

Allowance for doubtful accounts = $90,000

Expected uncollectibles = $125,000

The collection of accounts receivables after the adjustment for bad debt expense is determined by deducting the expected uncollectibles from the total amount of accounts receivables.

Accounts receivable amount expected to be collected after adjustment for bad debt expense:

= Accounts receivables - Expected uncollectibles

= $1,500,000 - $125,000

= $1,375,000

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4 years ago
Bull'sEye sells gift cards redeemable for Bull'sEye products either in-store or online. During 2016, Bull'sEye sold $2,000,000 o
alekssr [168]

Answer:

b) $1,950,000

Explanation:

Value of gift cards redeemed with those whose date of redemption has passed, will both have the amount to revenue out of $2,000,000 of the gift cards sold.

Total gift card revenue to be recognized in 2016 = $1,800,000 + $150,000

Total gift card revenue to be recognized in 2016 = $1,950,000

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3 years ago
A movie theater substantially decreases the price of its soda during the same week that a heavily advertised new movie is being
navik [9.2K]

Answer:

Price and quantity both increase

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5 0
4 years ago
On january 8th your account was charged $30.00 for an overdraft fee. why did that happen?
Zanzabum

On January 8th the account was charged $30.00 for an overdraft fee because It was time to pay the monthly account maintenance charge.

<h3>Why bank charges an overdraft fee?</h3>

When a bank's customer don't have enough money to cover a purchase made using a debit card or a cheque, then the bank will charge the overdraft fee. Rather of denying a charge, the bank will pay it and charge a fee.

In the given case, because it was time to pay the monthly account maintenance charge, the account was charged $30.00 for an overdraft fee on January 8th.

Therefore, bank charged overdraft fee as the date of payment comes.

Learn  more about the overdraft fee, refer to:

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5 0
3 years ago
Bottum Corporation, a manufacturing Corporation, has provided data concerning its operations for May. The beginning balance in t
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Answer:

$48,200

Explanation:

The computation of the direct material cost for the month of May is shown below:

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= $48,200

Hence, the direct material cost for the month of May is $48,200

3 0
3 years ago
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