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Arlecino [84]
2 years ago
12

At the end of the current year, using the aging of receivable method, management estimated that $18,000 of the accounts receivab

le balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a debit balance of $450. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense
Business
1 answer:
guapka [62]2 years ago
5 0

Answer:

Dr Bad Debt Expense $18,450

Cr Allowance for Doubtful Accounts

$18,450

Explanation:

Preparation of the appropiate adjusting journal entry that the company should make at the end of the current year to record its estimated bad debts expense

Dr Bad Debt Expense $18,450

Cr Allowance for Doubtful Accounts

$18,450

($18,000+Debit balance$450)

(Being to record estimated bad debts expense)

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Suppose the banking system does NOT hold excess reserves and the reserve ratio is 25%. If Melanie deposits $1,000 of cash into h
Leviafan [203]

Answer:

$3,000

Explanation:

Calculation for the increase the money supply

Using this formula

Increase in money supply=(Cash/Reserve ratio)-Cash

Increase in money supply=($1,000/0.25)-$1,000

Increase in money supply=$4,000-$1,000

Increase in money supply=$3,000

Therefore based on the information given the banking system can increase the money supply by $3,000

3 0
2 years ago
Where's the leak ma'am?
eimsori [14]
On the ceiling, of course
5 0
3 years ago
Read 2 more answers
A car plant used to produce 10 cars a day. With new technology, the same plant now produces 20 cars a day. The plant has increas
algol [13]
The plant as increased its production:
As it can make more than before, this means also that the plant is more efficient.
Hope this helps
4 0
3 years ago
Read 2 more answers
At its date of​ incorporation, McCarty Company issued​ 100,000 shares of its​ $10 par common stock at​ $11 per share. During the
Paul [167]

Answer:

(C) Decrease No effect

Explanation:

at purchase:

30,000 shares x 16 dollars each:

Treasury stock  480,000 debit

              Cash              480,000 credit

--purchase of own share--

Then we will decrease retained earnings for the difference in the cash proceed on the sale and our treasury stock.

30,000 x 12 dollars = 360,000 cash proceeds

treasury stock             480,000

decrease in RE            120,000

cash                         360,000 debit

retained earnings    120,000 debit

        Treasury Stock                      480,000 credit

8 0
3 years ago
Last year, Forest Products issued both 5-year and 10-year bonds at par. The bonds each have a coupon rate of 5.5 percent, paid s
Anna007 [38]

Answer:

Price at issuance is $1,000 for both bonds.

Price of the 5 year bond after the market rate increased to 7.4% is:

PV of face value = $1,000 / (1 + 3.7%)⁸ = $747.77

PV of coupon payments = $27.50 x 6.81694 (PV annuity factor, 3.7%, 8 periods) = $187.47

Market price = $935.24

this bond's price decreased by 64.76/1,000 = 0.06476 = 6.48%

Price of the 10 year bond after the market rate increased to 7.4% is:

PV of face value = $1,000 / (1 + 3.7%)¹⁸ = $519.97

PV of coupon payments = $27.50 x 12.97365 (PV annuity factor, 3.7%, 18 periods) = $356.78

Market price = $876.75

this bond's price decreased by 123.25/1,000 = 0.12325 = 12.33%

5 0
3 years ago
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