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motikmotik
3 years ago
15

Assume the following unadjusted account balances at the end of the accounting period for Emmie Company: Accounts Receivable, $30

0,000; Allowance for Doubtful Accounts, $4,200 (debit balance); and Net sales, $3,600,000. If Emmie’s past experience indicates credit losses of 1% of net sales, the adjusting entry to estimate doubtful accounts is: Select one: A. Bad Debts Expense 36,000 Allowance for Doubtful Accounts 36,000 B. Bad Debts Expense 36,000 Accounts Receivable 36,000 C. Bad Debts Expense 31,800 Allowance for Doubtful Accounts 31,800 D. Bad Debts Expense 40,200 Allowance for Doubtful Accounts 40,200
Business
1 answer:
Kay [80]3 years ago
7 0

Answer:

Option (A) is correct.

Explanation:

Given that,

Accounts Receivable = $300,000

Allowance for Doubtful Accounts = $4,200 (debit balance)

Net sales = $3,600,000

The Adjusting journal entry is as follows:

Bad Debts Expense A/c Dr. $36,000

           To Allowance for Doubtful Accounts   $36,000

(To record the estimate doubtful accounts)

Working notes:

Bad Debts Expense = 1 percent of net sales

                                 = 0.01 × $3,600,000

                                 = $36,000

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IT HEPLS TO SOLVE ECONOMIC PROBLEMS ABOUT TRADITIONAL SUPERSTATION

5 0
3 years ago
Read 2 more answers
Windsor, Inc. just began business and made the following four inventory purchases in June:
alisha [4.7K]

Answer:

c. the average cost method.

Explanation:

Windsor INC. purchased inventory during the month of June as follows:

June 1 129 units at $890

June 10 172 units at $1340

June 15 172 units at $1440

June 28 129 units at $ 1140

and at the end of the period, there are 180 units on hand.

In order to get highest gross profit the closing sock should be the highest, accordingly the value of inventory at hand should as as follows under different method explain below:

Under FIFO method the inventory first enter into the enterprise is available for sale at first so the inventory of 180 units at end should be values at the last price mentioned in the question i.e $1140, therefore the value amounts to $1140*180 units=$205200

Under LIFO method, likewise the last entered inventory will be available for sale and the inventory at the end of period will be valued at the price at which the inventory first bought i.e $890, therefore the value amounts to 180 units*$890=$160200

Under Average cost method the effect of differential price is distributed over the quantity bough during a period so that the company remains in ineffective condition during the period from the price change

Average cost per unit= (129*$890 +172*$1340+ 172*$1440+129*$1140)/602 units

=$1229.29

and for the 180 units the value amounts to 180*$122.29=$221271.429

so, as per explanation given above, it is certain that the highest value will be in average cost method.

The correct option is - c. the average cost method.

5 0
3 years ago
2. Explain what happens to the demand curve
astraxan [27]

Answer:

The law of demand states that consumers will request more of a product if its price decreases. For supplement goods, an increase in the price of one will increase demand for the other. The demand curve for apples will react as follows.

Explanation:

<u>A). More people begin to prefer apples to oranges.</u>

Should peoples' preference change to apples, the demand for oranges will decrease while that of apples will increase. The demand curve is downward sloping. If demand increases, the demand curve will shift to the right. It is also referred to as moving outwards. In this case, the demand curve for apples will shift to the right.

B) <u>The price of peaches rises (because peaches are a substitute for apples).</u>

Substitutes imply a good can be used in place of another. If the price of a substitute increases, it demands decreases. The demand for the substitute good will go up. An increase in the price of peaches will increase the demand for apples. As a result, the demand curve will shift outwards. In other words, shift to the right.

C. People's incomes rise (and apples are a normal good).

Demand for normal goods increase as the people's income rises. More people will afford to buy apples. If people are now earning more, the demand for apples will go up. The demand curve will shift to the right to indicate a surge in demand.

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3 years ago
If an advertiser places a TV commercial using a​ lonely, lost puppy to sell its​ products, then that advertiser is said to be ut
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Answer:

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they think ad. with emotional reaction is viewed  more likely to be shared  

so here the correct answer is Sadvertising

5 0
3 years ago
If a firm's goal is to maximize its earnings per share, this is the best way to maximize the price of the common stock and thus
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Answer:

False is the answer

6 0
3 years ago
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