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
What is the difference between a demand curve and a demand schedule?
svetlana [45]

Answer:

Demand schedule:

The Demand schedule refers to the tabular representation of the quantity demanded at the various price levels. By observing the demand schedule, we can conclude that as the price of the good increases then as a result the quantity demanded for that good falls. It represents various combination of price and quantity demanded.

Demand curve:

A demand curve refers to the graphical representation of the demand schedule which shows the relationship between the price of the commodity and the quantity demanded for that commodity. It is downward sloping curve which shows that there is an inverse relationship between the price of a good and the quantity demanded.

5 0
3 years ago
Use the following information to answer the next question. Total Asset = $40 million Depreciation = $1.0 million. Basic earning
Marizza181 [45]

Answer:

a. $8.0 million; $1.22 million

Explanation:

The computation is shown below:

As we know that

Basic earnings power = EBIT ÷ total assets

So,

EBIT = Basic earnings power × total assets

= 0.20 × 40 million

= $8 million

Now

Times interest earned = EBIT ÷ interest expense

So,  

Interest expense = EBIT ÷ Times interest earned

= $8 million ÷ 6.55

= $1.22 million

5 0
3 years ago
What employment positions at a hotel can also be found in almost any business?
Rina8888 [55]

Answer:

Manager

Assistant Manager

Janitor

Support Staff :))?

Explanation:

3 0
2 years ago
mungo purchases disability income insurance. the benefit is a payment of $2000 per months during qualifying periods of disabilit
r-ruslan [8.4K]

Mungo purchases disability income insurance. the benefit is a payment of $2000 per month during qualifying periods of disability the disability insurance premium is  Occupation, Benefit Period or Tenure, Health, Elimination Period or the Waiting Period, Policy Provisions if any.

A length of incapacity is a non-stop time frame throughout which a man or woman is below a disability as defined by segment 21  of the Social security Act. there may be no restriction on what number of hours you could work on SSI, alternatively, a restriction on how a lot you can make in a month.

A character in 2022, you need to be making less than $841 of countable earnings per month and feature much less than $2,000 in belongings to qualify. For a pair, the limit is $3,000.A closed duration of incapacity is the time period between the onset of incapacity and the date whilst a claimant is bodily able to return to work performing a significant gainful hobby. Calculating gain payment quantities. Your Weekly benefit quantity WBA relies upon for your annual income.

Learn more about The benefits here:-brainly.com/question/24679979

#SPJ4

5 0
2 years ago
Which of the following holds a company liable for negligence in the production, design, sale, or use of products the firm market
matrenka [14]

Answer:

Product liability

Explanation:

Product liability is when manufacturing company is held responsible for the quality of products they release for sale.

So for a product that is defective the company is liable and will bear the cost of product defects.

When defective products cause harm to the consumer, they can sue the company court.

Product liability law is considered as a type of personal injury law.

4 0
4 years ago
Other questions:
  • cathy's customer base is 2/3 residential and 1/3 business . if she has 350 residential customers, how many total customers does
    5·1 answer
  • Orange Cable TV Company, an accrual basis taxpayer, allows its customers to pay by the year in advance ($500 per year), or two y
    7·1 answer
  • He degree to which an organization achieves a stated goal rehttps://.com/35621172/mgt-3013-ch-2-flash-cards/
    9·1 answer
  • A customer has just received a $100,000 inheritance and wants to know what to do with the money until he decides how to use it.
    15·1 answer
  • Janice developed a media plan for a client that recommended 10 commercials in a television program that delivered 4 million targ
    8·1 answer
  • 1. Which country has the comparative advantage in DVDs? (Remember! OOO Output –Other goes Over!) [2 pts]
    14·2 answers
  • An insurance policy with a higher premium most likely has
    12·1 answer
  • The Bigdrill company drills for oil, which it sells for $200 million to the Bigoil company to be made into gas. The Bigoil compa
    12·1 answer
  • Which of the following is a product-based business?
    6·1 answer
  • Blue Spruce Corp. started the year with total assets of $304000 and total liabilities of $244000. During the year the business r
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!