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
Leokris [45]
2 years ago
13

The following information pertains to Lightning Inc., at the end of December: Credit Sales $ 20,000 Accounts Payable 10,000 Acco

unts Receivable 11,800 Allowance for Uncollectible Accounts 400 credit Cash Sales 20,000 Lightning uses the aging method and estimates it will not collect 7% of accounts receivable not yet due, 20% of receivables up to 30 days past due, and 46% of receivables greater than 30 days past due. The accounts receivable balance of $11,800 consists of $7,500 not yet due, $2,300 up to 30 days past due, and $2,000 greater than 30 days past due. What is the appropriate amount of Bad Debt Expense
Business
1 answer:
timama [110]2 years ago
3 0

Answer:

The appropriate amount of Bad Debt Expense is $3,345.20.

Explanation:

The appropriate amount of Bad Debt Expense can be calculated as follows:

Bad debt expense = (Percentage of accounts receivable not yet due it will not collect * Accounts receivable not yet due) + (Percentage of receivables up to 30 days past due it will not collect * Amount of receivables up to 30 days past due) + (Parentage of receivables of receivables greater than 30 days past due it will not collect * Amount of receivables greater than 30 days past due) - Allowance for Uncollectible Accounts (credit) ……………………… (1)

Substituting the relevant values into equation (1), we have:

Bad debt expense = (7% * $7,500) + (20% + $2,300) + (46% * $2,000) - $400 = $3,345.20

Therefore, the appropriate amount of Bad Debt Expense is $3,345.20.

You might be interested in
Because of its effect on the amount of capital per worker, in the short term an increase in the working population is likely to
Tamiku [17]

Answer:

The correct answer is letter "B": reduce productivity. Other things the same, this decrease will be larger in a poor country.

Explanation:

Labor productivity measures the units a worker can produce per hour. <em>Capital, technology, </em>and <em>human development</em> influence the labor productivity employees could have. Poor countries are characterized by having low investments. If the labor force increases but the capital remains stagnant, the level of productivity is likely to fall since there is a surplus in labor hand.

3 0
3 years ago
McCarthy Company has inventory... McCarthy Company has inventory of 8 units at a cost of $200 each on October 1. On October 2, i
KatRina [158]

Answer:

Ending inventory= $3,485

Explanation:

Giving the following information:

Beginning inventory= 8 units for $200 each

On October 2= purchased 20 units at $205 each.

11 units are sold on October 4.

u<u>nder the FIFO (first-in, first-out) inventory method, the ending inventory is calculated using the cost of the last units incorporated into inventory.</u>

Ending inventory= 17*205= $3,485

6 0
3 years ago
Why is it important to conduct market research on your target audience before building your marketing plan
Yuki888 [10]
Its important to conduct market research on your target audience before building your marketing plan because you need to consider who your potential customers are before deciding on marketing strategies. Customers enjoy sharing their opinions, so market research will make your product sell more.
4 0
3 years ago
revorrow Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets a
nlexa [21]

Answer:

$9,906 F

Explanation:

Calculation as follows:

Budget Income Statement

<u>Particular</u>                                                       $

Revenue (28.4 x 7,000)                          198,800

Direct Labor (2.8 x 7,000)                       (19,600)

Direct Material (10.7 x 7,000)                  (74,900)

Manufacturing Overheads

(38,000 + [1.5 x 7,000] )                           (48,500)

Selling and administrative Expenses

(23,600 + [0.3 x 7,000] )                           (25,700)

Net Operating Income                               30,100

Actual Income Statement

<u>Particular</u>                                                       $

Revenue                                                   205,320

Direct Labor                                             (18,974)

Direct Material                                         (72,252)

Manufacturing Overheads                      (48,320)

Selling and administrative Expenses      (25,768)

Net Operating Income                             40,006

Activity variance for net operating income = Net operating income actual - Net operating income budgeted

Activity variance for net operating income = 40,006 - 30,100

 Activity variance for net operating income = $9,906 F

8 0
3 years ago
Suppose Stuart Company has the following results related to cash flows for 2021: Net Income of $5,600,000 Increase in Accounts P
seropon [69]

1. The statement of cash flows of Stuart Company for the year ended December 31, 2021, is as follows:

Stuart Company

<h3>Statement of Cash Flows</h3>

For the year ended December 31, 2021,        $'000

Net Income                                                     $5,600

Depreciation                                                      1,900

Other Adjustments                                            (800)

Increase in Accounts Payable                           600

Decrease in Accounts Receivable                    900

Increase in Inventory                                        (200)

Net Cash Flow from Operating Activities $8,000

2. The Net Cash Flow from Operating Activities for Stuart Company for 2021 is <u>$8 million</u>.

<h3>What are operating activities' cash flows?</h3>

The cash flows from the operating activities section affect revenues and expenses.

They indicate the cash flows that originate from the regular business activities of the entity.

To prepare the statement of cash flows, the first items to adjust the net income are the non-cash expenses and losses and revenues and gains.

Learn more about the operating activities section at brainly.com/question/25530656

#SPJ1

8 0
2 years ago
Other questions:
  • Lauer Corporation provided the following information about one of its laptop computers: Date Transaction Number of Units Cost pe
    13·1 answer
  • On January 20, a payroll check is automatically deposited. What is the current balance?
    6·1 answer
  • The Denver Broncos hold a big pre-season football ticket blitz and sell $2.4 million worth of tickets for cash for the upcoming
    14·2 answers
  • The simple interest earned on a certain amount is double the amount when invested for 10 years. What is the interest rate being
    7·1 answer
  • As a manager of a retail-clothing store, Lance favors detailed job descriptions, formal rules and regulations, detailed records,
    6·1 answer
  • What is the name of the diagram that shows physical needs must be met befroe all other needs and wants?
    8·1 answer
  • The diagnostic process is _____. a systematic approach to understand the organization none of the answers performed exclusively
    6·1 answer
  • Explain what the long- and short-term consequences are of not promoting equality or working to reduce poverty.
    11·1 answer
  • What cycle time would match capacity and demand if demand is 161 units a day, there are 2 shift(s) of 446 minutes each, and work
    9·1 answer
  • Check all of the perks a job might offer as incentives for potential applicants
    14·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!