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Oksana_A [137]
3 years ago
8

Uncollectible accounts are determined by the​ percent-of-sales method to be ​% of credit sales. How much is​ uncollectible-accou

nt expense for ​?
Business
1 answer:
lesya [120]3 years ago
7 0

Answer:

$1,160

Explanation:

<em>Hie, I have attached the full question as an image below.</em>

The firm usually makes provision for certain amounts so as not to overstate their profits. This expected as it is prudent than reporting profits that might never occur. Provisions of Uncollectible accounts are examples of such amounts.

An increase in Uncollectible amount compared to the opening balance is treated as an Expense in the Income Statement whilst a decrease is treated as an Income.

For this question, we are told that Uncollectible accounts are determined by the​ percent-of-sales method to be ​4% of credit sales. Thus calculation of the 2012 uncollectible-account expense is as follows :

Credit Sales - 2012 = $44,000

Beginning Balance in allowances = $600

Therefore,

Uncollectable Amount (2012) = Credit Sales x percent-of-sales

                                                 = $44,000 x 4%

                                                 = $1,760

The Uncollectable amount has increased by $1,160 ($1,760 - $600)

Conclusion :

The collectible-account expense for 2012 is $1,160

 

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Explanation:

The manufacturing company has a direct materials cost of $6

The company manufactures 2,000 unit

Therefore total direct material cost can be calculated as follows

= 2,000×6

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Hence the total direct material cost of $12,000

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At the end of a full year mary garber had $6248.95 in her saving account. If the rate of interest was 12.253%, how much money di
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$5,566.84

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where:

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4 0
3 years ago
On January 1, 2014, Borstad Company purchased equipment for $1,180,000. It is depreciating the equipment over 25 years using the
bezimeni [28]

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Explanation:

a)Purchase cost - 1,180,000

Useful life - 25

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4 0
3 years ago
The ​short-run effect of consumers becoming more pessimistic will be for the
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Answer:

The correct answer is option A.

Explanation:

In case the consumers have a pessimistic tendency towards the future, they would expect the economy to face a downturn. They will, as a result, save their income and wealth for the future.  

This would cause a decline in consumer spending and the aggregate demand curve will move down to the left.  

An increase in consumer confidence, on the other hand, would cause consumer spending and aggregate demand to increase.

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