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
Lisa [10]
2 years ago
13

Pincus Associates uses the allowance method to account for bad debts. During 2021, its first year of operations, Pincus provided

a total of $119,000 of services on account. In 2021, the company wrote off uncollectible accounts of $4,800. By the end of 2021, cash collections on accounts receivable totaled $100,800. Pincus estimates that 5% of the accounts receivable balance at 12/31/2021 will prove uncollectible.
Required:
a. What journal entry did Pincus record to write off uncollectible accounts during 2021?
b. What journal entry should Pincus record to recognize bad debt expense for 2021?
Business
1 answer:
Luba_88 [7]2 years ago
4 0

Answer:

Pincus Associates

Journal Entries:

a. Debit Allowance for Uncollectibles $4,800

Credit Accounts Receivable $4,800

To write off uncollectible accounts.

b. Debit Bad Debts Expense $5,470

Credit Allowance for Uncollectibles $5,470

To record bad debts expense for the period.

Explanation:

a) Data and Calculations:

Services on account = $119,000

Uncollectibles written off = $4,800

Cash collections on accounts = $100,800

Accounts receivable balance = $13,400 ($119,000 - 4,800 - 100,800)

Estimated uncollectible allowance = 5% of accounts receivable balance

= $670 ($13,400 * 5%)

Analysis:

a. Allowance for Uncollectibles $4,800 Accounts Receivable $4,800

b. Bad Debts Expense $5,470 Allowance for Uncollectibles $5,470 ($4,800 + $670)

You might be interested in
Flint Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the manufacture of a new product. The m
JulijaS [17]
Idkdkdkdkdkdkdkdnsnddnvijsplomkn
3 0
3 years ago
Fits Like A Glove Shoes, Inc., and Retail Footwear Stores enter into a contract for a sale of shoes. The contract indicates that
andre [41]

Answer:

D) ​F.O.B.

Explanation:

Based on the scenario being described within the question it can be said that the included term would be F.O.B. This is a contractual term meaning Free on Board, and immediately specifies that the seller will deliver the goods at their own cost , through a specific route to the destination set forth by the buyer. Once the goods arrive the responsibility is no longer the sellers.

6 0
3 years ago
Which of the following is not a benefit of CTSO?
Advocard [28]
Scholarships would not be of any benefit
8 0
3 years ago
Read 2 more answers
Because of the sarbanes-oxley act, accountants must maintain financial documents and audit work for
BabaBlast [244]
Because of the Sarbanes-Oxley act, accountants must maintain financial documents and audit work for five years.
This act was enacted in 2002 in the US. It has to do with the accuracy of financial information, and was named after the sponsors of the act, US <span>Senator </span>Paul Sarbanes<span> </span><span>and U.S. Representative </span>Michael G. Oxley.

6 0
3 years ago
10.3. Gadgets are produced and sold in a competitive market. When there is no tax, the equilibrium price is $20 per gadget. The
ANEK [815]

Answer:

isΔ PdΔ Ps=EQs, PEQd,PAs given in the question, 40=EQs, P−0.5This perfectly elastic supply shows the burden of tax is imposed completely on the consumer, indicating the elasticity of supply is infinite.

6 0
2 years ago
Other questions:
  • How is the standard of living measured?
    15·1 answer
  • Suppose Lisa starts driving for Uber as a part-time job to supplement her income as a home-based web designer. When working as a
    12·1 answer
  • For each example listed, decide if the good is a normal good or an inferior good. Make sure you answer from the perspective of t
    10·1 answer
  • Assume the following data for Casper Company before its year-end adjustments:
    14·1 answer
  • Wallen Corporation is considering eliminating a department that has an annual contribution margin of $80,000 and $160,000 in ann
    12·1 answer
  • Identify which documents Max needs to open a bank account.
    13·1 answer
  • Fleming corp. provided services on account. the transaction would be recorded with a credit to:
    13·1 answer
  • I no longer have a question
    11·2 answers
  • A debtor owed a creditor $1,200 on a promissory note that was due on August 1. After the debtor told the creditor that he might
    12·1 answer
  • Gavin's position at Pharma-Tech involves purchasing complex manufacturing components, making decisions based on technical data,
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!