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JulijaS [17]
3 years ago
7

At the end of the current year, the accounts receivable account has a debit balance of $2,950,000 and sales for the year total $

27,400,000. The allowance account before adjustment has a debit balance of $9,500. Bad debt expense is estimated at 3/4 of 1% of sales. The allowance account before adjustment has a debit balance of $9,500. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $188,000. The allowance account before adjustment has a credit balance of $31,400. Bad debt expense is estimated at 1/2 of 1% of sales. The allowance account before adjustment has a credit balance of $31,400. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $175,000. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above
Business
1 answer:
DanielleElmas [232]3 years ago
8 0

Answer:

The treatments and adjusting entry balances are given for each case.

Explanation:

1) Sales               $27,400,000

Accounts receivable account                   $2,950,000

The allowance account before adjustment has a debit balance of $9,500

Bad debt expense is estimated at 3/4 of 1% of sales= 274000 *3/4= $205500

Treatment for a :

Un adjusted Balance = $ 9500 debit

Bad Debts Expense- $ 205500 Cr

Required Adjustment = $  215000

<em><u>End of period adjustment entry </u></em>

Bad Debts Expense   $215000 Dr

Allowance for Doubtful Accounts $ 215000 Cr.

Treatment for b :

Un adjusted Balance = $ 9500 debit

Estimated Balance - $ 188,000 credit

Required Adjustment = $  197,500

<u><em>End of period adjustment entry </em></u>

Bad Debts Expense   $ 197500 Dr

Allowance for Doubtful Accounts $ 197500 Cr.

Treatment for c :

Un adjusted Balance = $ 31,400 Cr

Estimated Balance - $ 137000 (274000/2) Cr

Required Adjustment = $  105600

<u><em>End of period adjustment entry </em></u>

Bad Debts Expense   $ 105600 Dr

Allowance for Doubtful Accounts $ 105,600 Cr.

Treatment for d:

Un adjusted Balance = $ 31,400 Cr

Estimated Balance - $ 175000 Cr

Required Adjustment = $  143,600

<u><em>End of period adjustment entry </em></u>

Bad Debts Expense   $ 143,600 Dr

Allowance for Doubtful Accounts $ 143,600 Cr.

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If shell decided to open a new service station I a rural area of uk, which was not well serviced with filling stations, it would
timofeeve [1]

Answer:

The stakeholders are ; Customers, shareholders/investors, local community, suppliers, employees, Government, competitors, creditors etc.

Explanation:

Stakeholders are a group of people or individuals within a locality, whose interest is Paramount to the survival of an organization.

There are two types of stakeholders, which are;

Internal stakeholders : These group of people or individuals are part of the organization . eg employees, board of directors, managers. Etc.

External stakeholders: These group of people or individuals are not part of the organization but have interest in its performance. Eg local community, media, consumers, suppliers etc.

There are also primary stakeholders and secondary stakeholders.

Primary stakeholders. I.e those who have financial interest in an organization. Eg creditors, shareholders/investors etc.

Secondary stakeholders. i.e those who do not have financial interest but whose decision is influential. Eg trade union, government body etc.

As in the scenario above, impact of shell on several stakeholders are enumerated below;

-Employees: There must be job security for employees, clean and safe working environment and there must be regular source of income with which salaries will be paid.

-Shareholders/Investors:They expect maximum returns on their investment in form of dividends. They also expected to be given preferential treatment in terms of lower prices and little or no value lost on their investment.

-Customer: They expect that products to be sold are reliable and safe for consumption and at fair prices.

-Suppliers: Price of product supplied should be agreed by parties involved. Suppliers also expect regular and frequent orders from them.

-local community: These people expect steady employment for their children, provision of social amenities like tarred roads, community hall, cinema hall etc and avoidance of noise and environmental pollution.

-Competitors: There should be healthy rivalry among producers of similar products and all element of demarketing should be avoided.

-Government ; Government expect from shell constant and regular payments of taxes, compliance with local laws and provision of corporate social responsibilities to the host community.

-Creditors: The creditors would expect adequate returns on their loan investment, absence of failure to payback money owned them and repayment of money owed to them at the agreed date.

4 0
3 years ago
What management function is to ensure that all factors of production are available to departments
artcher [175]
Production planning ,production control , quality and cost control and inventory control
5 0
3 years ago
Tony's Deli has cash of $145, accounts receivable of $99, accounts payable of $219, and inventory of $413. What is the value of
grigory [225]

Answer:

the value of the quick ratio is 1.11 times

Explanation:

The computation of the value of the quick ratio is shown below:

Quick Ratio = Total Quick Assets ÷ Total current liabilities

= [Cash + Accounts Receivables] ÷ Accounts Payable

= [$145 + $99] ÷ $219

= $244 ÷ $219

= 1.11 Times

Hence, the value of the quick ratio is 1.11 times

4 0
2 years ago
On April 1, Garcia Publishing Company received $32,580 from Otisco, Inc. for 36-month subscriptions to several different magazin
Oksi-84 [34.3K]

Answer: Debit Unearned Fees, $8,145; Credit Fees Earned, $8,145.

Explanation:

The $32,580 are for 36 months so the amount per month would need to be calculated.

= 32,580/36

= $905

The subscriptions were paid on the 1st of April which means that only 9 months (April to December) of the first year will have revenue recognized for them.

= 905 * 9

= $8,145

Correct entry would be to debit the Unearned fees account as it is a liability that needs to reduce to reflect that fees have now been recognized.

Credit the Fees Earned account to recognize revenue.

Debit Unearned Fees, $8,145; Credit Fees Earned, $8,145.

4 0
3 years ago
Christopher has a collection of 20 video games and will buy 4 more each month. Peter has a collection of 92 video games and will
Anton [14]

Answer:

It would be 8 months and they each would have 52 games.

Explanation:

8 0
2 years ago
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