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
arlik [135]
3 years ago
9

At the end of the current year, Accounts Receivable has a balance of $675,000; Allowance for Doubtful Accounts has a debit balan

ce of $5,400; and sales for the year total $3,000,000. An analysis of receivables indicates the uncollectible receivables are estimated to be $45,000
Required:
a. Determine the amount of the adjusting entry for bad debt expense.
b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense.
c. Determine the net realizable value of accounts receivable.
Business
1 answer:
Bad White [126]3 years ago
4 0

Answer and Explanation:

The computation is shown below:

a.

The amount of the adjusting entry for bad debt expense should be

= $45,000 + $5,400

= $50,400

The journal entry should be  

Bad Debt Expense Dr. 50,400

    To Allowance for Doubtful Accounts Cr. 50,400

(Being the bad debt expense is recorded)

b.    

Accounts Receivable 675,000

Allowance for Doubtful Accounts 45,000

Bad Debt Expense 50,400

c.    

Accounts Receivable 675,000

Less: Allowance for Doubtful Accounts  (45,000)

Net realizable value of accounts receivable 630,000

You might be interested in
True or False: It is common for debt investors to push entrepreneurs to pursue less risky business strategies for their ventures
NNADVOKAT [17]

it is false and uncommon for debt investors to push entrepreneurs to pursue less risky business strategies for their ventures.

Basically, debt investment entails an investor who lends his money to a firm, individual with an expectation of repayment of loan plus interest from them at a particular date.

The practice that borrowers should engage in less risky business strategies for their ventures will not be encouraged by debt investors because it is less risky and will not yield high return to allow them repay their loan quick enough.

Therefore, it is false and uncommon for debt investors to push entrepreneurs to pursue less risky business strategies for their ventures.

Read more about this here

<em>brainly.com/question/25219850</em>

3 0
2 years ago
Nivea works for Bonbon, a fair-trade chocolate company based in California. In addition to being recognized for the delicious, l
skad [1K]

Answer:

c. brand insistence

Explanation:

Since in the given situation it is mentioned that the 83% of the loyal customers could not find the bonbon products at local stores so they will ordered online instead of purchasing the substitute goods as in the brand insistence refer the stage of the brand loyalty where the purchase would accept no alternatives and they will search for the particular brand only

5 0
2 years ago
Do It! Review 1-3 Classify the following items as issuance of stock, dividends, revenues, or expenses. Then indicate whether eac
Sphinxa [80]

Answer:

1. Dividends = Dividends, it decreases stockholder's equity.

2. Rent Revenue = Revenue, it increases stockholder's equity

3. Advertising Expense = Expense, it decreases stockholder's equity

4. Stockholder's pay cash into business = Issuance of stock, increases stockholder's equity.

Explanation:

Notes to above:

1. Dividends are paid from current year income or from retained earnings, as both current year earnings and retained earnings are clubbed into equity thus, with payment of dividend, equity is decreased.

2. Rent revenue is a part of income and income is part of equity as with increase in income there is increase in equity also.

3. Advertising expense will decrease the income and with decrease in income there will be decrease in equity.

4. Stockholder's pay cash into business as for issuance of stock and with issue of stock equity will increase.

7 0
3 years ago
The news division of WEXS Channel 10 wanted to hire a new morning news anchor. As part of the interview process, candidates were
jolli1 [7]

Answer:B

Explanation: The WEXS Channel 10 wanted to see how well the candidates would perform with a story that was given to them.

5 0
3 years ago
Modern machinery encouraged businesses to move out of homes and workshops to factories. True False
Gnoma [55]
False....Get a A lol your welcome
5 0
3 years ago
Other questions:
  • A highly liquid financial instrument with a maturity of 90 days would be traded in: the bond market. none of the above. the mone
    15·2 answers
  • As leader of your company's Web team, you have been asked to give an oral presentation of plans for your company's new Website.
    7·1 answer
  • Suppose that SoS sells both versions and wants to charge different prices for different versions. What is the highest price of t
    15·1 answer
  • The four general approaches that companies use to develop employees include: Question 41 options:
    15·1 answer
  • Forever Quilting is a small company that makes quilting kits priced at $120 each. There is no quantity discount. The costs of th
    14·1 answer
  • Do you think it makes sense for a transnational organization to have more than one headquarters? What might be some advantages a
    14·1 answer
  • According to the Marketing Concept, a. Companies produce only what customers want. b. A company should produce only basic produc
    9·1 answer
  • An economy where the government determines the prices of all goods and services produced is called a ( 50 POINTS AND BRAINLIEST
    14·1 answer
  • In a closed economy with only lump-sum taxation, if the marginal propensity to consume is equal to 0. 75, a $70 billion increase
    6·1 answer
  • Which inventory costing method assumes that items in ending inventory are the most recently acquired?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!