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Anarel [89]
3 years ago
11

Abbott Company uses the allowance method of accounting for uncollectible accounts. Abbott estimates that 3% of net credit sales

will be uncollectible. On January 1, theAllowance for Doubtful Accounts had a credit balance of $2,400. During the year, Abbott wrote off accounts receivable totaling $1,800 and made credit sales of $100,000.There were no sales returns or sales discounts during the year. After the adjusting entry, the December 31, balance in the Bad Debt Expense will be:________.
a. $1,200
b. $3,000
c. $3,600
d. $7,200
Business
1 answer:
mixer [17]3 years ago
3 0

Answer:

b. $3,000

Explanation:

According to the above information, the following data are given

Credit sales = $100,000

Uncollectible percentage = 3%

So, after the adjustment by using allowance method, Bad debt expense can be calculated as;

Bad debt expense = Credit sales × Uncollectible percentage

= $100,000 × 3%

= $3,000

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A limit of spending of the government, 
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Journalizing purchase and sales transactions
Firdavs [7]

Based on the given purchase and sale transactions, the journal entries are:

Date             Account Title                                   Debit                    Credit

Feb 3      Merchandise inventory                   3,300

                            Account payable                                       3,300

Feb 7            Account payable                               900

                    Merchandise inventory                                               900

Feb 9            Merchandise inventory                    400

                      Cash                                                                               400

Feb 10           Account receivable                        4,700

                      Sales revenue                                                             4,700

Feb 10            Cost of goods                                  2,350

                       Freight out                                          370

                      Merchandise inventory                                            2,350

                      Cash                                                                             370

Feb 12             Account payable                             2,400

                       Cash                                                                          2,328

                       Merchandise inventory                                                 72

Feb 28             Cash                                                 4,606

                         Sales discount                                      94

                         Account receivable                                               4,700

<h3 /><h3>What are the journal entries?</h3>

When goods are purchased, they will be debited to the Merchandise inventory account. If they were paid for with cash, they will be credited to the cash account. On account is credited to Accounts Payable.

When goods are sold, the cost of goods sold will have to be debited to account for the cost of the purchase that is now being sold.

Because the goods were paid for in the discount period, a 3% discount would apply:

= 2,400 x (1 - 3%)
= $2,328

A 2% discount would apply to the Feb 10. sales for the same reason:
= 4,700 x (1 - 2%)

= $4,606

Find out more on discount terms at brainly.com/question/24086159.

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4 0
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In the Shaping Department of Furs Industries the unit materials cost is $5.00 and the unitconversions cost is $3.00. The departm
swat32

Answer:

total value of ending WIP inventory:       8,400

Explanation:

unit material cost: 5.00 dollar

ending work in proces inventory

materials equivalent units:

1,500 x 100% = 1,500

as the mateirals are added entire at the beginning of the process:

material cost: 1,500 x 5 = 7,500

conversion

1,500 x 20% = 300

300 x 3.00 = 900

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conversion 900

total        8,400

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The greatest amount of satisfaction comes from good's consumption of utility or say utility maximizer.

<h3>What is the term about?</h3>

A utility maximizer is known to be a person that seeks to get the highest satisfaction or happiness.

Utility is known to be the happiness or benefit consumers gotten from a good's consumption.

Therefore, The greatest amount of satisfaction comes from good's consumption of utility or say utility maximizer

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Answer:

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Explanation:

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Therefore, If the Fed increases its open market purchases of government securities, it exerts downward pressure on real interest rates. This situation is commonly referred to as LIQUIDITY EFFECT.

8 0
3 years ago
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