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Klio2033 [76]
2 years ago
14

At year-end (December 31), Chan Company estimates its bad debts as 0.80% of its annual credit sales of $654,000. Chan records it

s Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $327 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Prepare Chan's journal entries for the transactions.
Business
1 answer:
allsm [11]2 years ago
7 0

Answer and Explanation:

The journal entries are shown below:

On December 31

Bad debt expense Dr  $5,232      ($654,000 × 0.80%)

      To Allowance for doubtful debts  $5,232

(To record the bad debt expense)  

On Feb 01

Allowance for doubtful debts Dr $327

     To Account receivable $327

(To record the uncollectible amount)

On June 5

Account receivable $327

         To Allowance for doubtful debts Dr $327

 (To record the uncollectible amount)

On June 5

Cash Dr $327

  To Account receivable $327

(To record the cash received)

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2 years ago
A firm has current liabilities of $500, a current ratio of 1.5, and a quick ratio of 1.1. calculate the level of inventory for t
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The inventory level will be used by an inventory manager to regulate the optimal time for manufacturing, if they are handling a manufacturer's warehouse, or to demand more if the product is being stored as stock at a store.


To solve this:

Get first the Current Assets this solved by multiplying the current liabilities to the current ratio.

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3 years ago
On the income statement, a merchandising company reports the cost of merchandise inventory that had been sold to customers. TRUE
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Answer:

True

Explanation:

The correct answer is - True

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2 years ago
In a perfectly competitive market, the long-run market supply curve tends to be horizontal or nearly so. What is another way to
Sphinxa [80]

Answer:

Market supply is much more elastic in the long run than the short run.

Explanation:

Here are the options to this question :

In the long run, average total cost is minimized

Market supply is much less elastic in the long run than the short run.

In the long run, price equals marginal cost.

Market supply is much more elastic in the long run than the short run.

A perfect competition is characterised by many buyers and sellers of homogeneous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.  

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7 0
3 years ago
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