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Marina86 [1]
3 years ago
9

Prepare the adjusting entry to record bad debts expense assuming uncollectibles are estimated to be (1) 3% of credit sales, (2)

1% of total sales and (3) 6% of year-end accounts receivable. Prepare the adjusting entry to record bad debts expense assuming uncollectibles are estimated to be (1) 3% of credit sales, (2) 1% of total sales and (3) 6% of year-end accounts receivable.
Business
1 answer:
Genrish500 [490]3 years ago
8 0

Answer:

1.

Date                   Account Title                                             Debit          Credit

Dec. 31             Bad debt expense                                    $9,000

                        Allowance for doubtful accounts                                 $9,000

Working

= 3% * 300,000

= $9,000

2.

Date                   Account Title                                             Debit          Credit

Dec. 31             Bad debt expense                                    $12,000

                        Allowance for doubtful accounts                              $12,000

Working

= 1% * total debt

= 1% * (900,000 + 300,000)

= $12,000

3.

Date                   Account Title                                             Debit          Credit

Dec. 31             Bad debt expense                                    $12,500

                        Allowance for doubtful accounts                              $12,500

Working

= 6% * Accounts receivable

= 6% * 125,000

= $7,500

As the Allowance account is in debit, it means that bad debt exceeded the allowance so this balance needs to be added to properly cater for bad debts.

= 7,500 + 5,000

= $12,500

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madreJ [45]

Answer:

The correct option is D, Heirloom.

Explanation:

A garden Plant that has been passed down within a food family and is generally not commercially grown is called a Heirloom Product. Such garden plants are planted by the gardeners for their own and family use. Such plants are not sold commercially. Generally they are planted to be used within the house. Family members use such plants to make foods.

4 0
3 years ago
All of the following are true about time series methods EXCEPT a. they discover a pattern in historical data and project it into
motikmotik

Answer:

B. they involve the use of expert judgement do develop forecasts

Explanation:

A time series is a series of events that is spaced equally in time. It is a statistical technique used to identify a time based trend of events and them make forecast using data from the trend/time series.

Time series requires certain processes which include discovering of a pattern in the historical data, projection of the historical data into the future, assumption that the pattern will remain the same(constant) as the time goes by, etc.

In time series method, since historical data is the point of reference for making a forecast, no expert judgements is required to develop forecasts. This is because once the data of the series from the past has been taken and a trend/pattern has been identified, that becomes the basis for future forecasts.

Cheers.

8 0
3 years ago
For an airline, which of the following would not be an operational budget? A cash receipts budget of flying consumers. A budget
katrin [286]

Answer:

A cash receipts budget of flying consumers.

Explanation:

Operational budget is defines as all the profits and expenses a business realises as a result of planning it's operations.

Usually an operational budget is set before activities begin, and is a target to be achieved.

For an airline cash receipts of flying customers is not a revenue realised as a result of planning operations, so this is the correct answer.

However a fuel budget, material budget for parts, and labour budget for flight crew are operational budgets.

4 0
3 years ago
Read 2 more answers
In year T, a US citizen buys 100 shares of Sonic on the Tokyo stock exchange at 700 yens each. Suppose the exchange rate then is
zlopas [31]

Answer:

Change in US external wealth between periods T and T +1 in dollars = -$100

Explanation:

Since nothing else changes, this implies that the exchange rate per yen is $0.01 in periods T and T +1. Therefore, we have:

Value shares of Sonic in period T in dollar = Number of shares of Sonic bought in period T * Price per share of Sonic in Yen in period T * Exchange rate per yen in periods T = 100 * 700 * $0.01 = $700

Value shares of Sonic in period T+1 in dollar = Number of shares of Sonic in period T+1 * Price per share of Sonic in Yen in period T+1 * Exchange rate per yen in period T+1 = 100 * 600 * $0.01 = $600

Change in US external wealth between periods T and T +1 in dollars = Value shares of Sonic in period T+1 in dollar - Value shares of Sonic in period T in dollar = $600 - $700 = -$100

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What are the benefits of "inventory pooling"? Establishing pools of inventory at each supplier and customer locationsCentralizes
PolarNik [594]

Answer:

The benefits of Inventory Pooling includes:

  • centralizing inventory into fewer locations thus reducing safety stocks and the amount of inventory needed in the supply chain.
  • Pulling back inventory when firms have too much at retail level.

Explanation:

inventory pooling is an operational strategy used to increase efficiency in stock management and analysis.

It is a supply chain tool that consolidates multiple inventory locations into a single one.

It is a centralized system that helps with stock keeping. It makes projections easier and helps manage shortfalls that may arise due to demand uncertainty.

It is cost effective by reducing cost of employing more staff and reduces the percentage error due to the centralized portal.

By reducing operational costs, profit is maximized.

8 0
3 years ago
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