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iris [78.8K]
3 years ago
14

Finish Co. uses the allowance method based on the percent of sales method to account for bad debts. At the end of 2010, Finish C

o.'s unadjusted trial balance shows an accounts receivable balance of $30,000; allowance for doubtful accounts balance of $200 (credit); and sales of $600,000. Based on history, Finish estimates that bad debts will be 1% of sales. The entry to record estimated bad debts will include a debit to Bad Debts Expense in the amount of: Multiple choice question. $500 $6,000 $6,200 $100 $5,800
Business
1 answer:
likoan [24]3 years ago
5 0

Answer:

$6,000

Explanation:

Calculation to determine what The entry to record estimated bad debts will include

Bad Debts Expense=Sales of $600,000*1% of sales

Bad Debts Expense=$6,000

Therefore The entry to record estimated bad debts will include a debit to Bad Debts Expense in the amount of:$6,000

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The Nelson Company has $1,312,500 in current assets and $525,000 in current liabilities. Its initial inventory level is $380,000
Sedbober [7]

Answer:

company can value of $190909.1

Explanation:

Given data:

current assets = $1,312,500

current liabilities =  $525,000

initial inventory level is $380,000

current ratio = 2.2

current liabilities is calculated as = \frac{Current/ Assets}{current/ ratio}

plugging all value  in above relation

current liabilities= \frac{1312500}{2.2}

current liabilities = $ 596590.90

and we know  current liabilities is  $525,000. Thus company can value of $190909.1

8 0
3 years ago
Monique bakes custom birthday cakes that she markets all over the Southwestern U.S. Her biggest concern is with efficiently prod
pentagon [3]

Answer:

Production Orientation

Explanation:

Monique's company follows a production orientation. Her company chooses to ignore their customer's needs and focus only on efficiently building a quality product. This type of company believes that if they can make the best 'mousetrap,' their customers will come to them.

8 0
4 years ago
Seasons Construction is constructing an office building under contract for Cannon Company and uses the percentage-of-completion
lana66690 [7]

Answer:

SEASONS CONSTRUCTION

At the end of Dexc 31 2023

The revenue to be recognized will be = 25% * $18,600,000 =  $4.650,000

The cost to be recognized =  25% * $18,750,000 =  $4,687,500

Since percentage of completion method is being used, the revenue and cost to be recognized for the ywear 2023 will be based on the proportion of work completed in that year.

Explanation:

5 0
4 years ago
What marketing piece identifies a salesperson's credentials and successes?
NemiM [27]
The marketing piece that identifies a salesperson's credentials and successes is Career book. 
A salesperson is an individual who sells goods and services to other entities. the successfulness of a salesperson is measure by the amount of sales he or she makes during a given period and how good that person is in persuading individuals to make a purchase. The compensation is dependent on the amount of sales made and a fixed amount. 
5 0
3 years ago
An item was shipped from a supplier under FOB shipping point. The invoice in the amount of $2,000 included payment terms of 2/10
Norma-Jean [14]

Answer:

Cost of inventory = $2,410

Explanation:

<em>The payment terms 2/10, n/30 implies that if the Company pays within te next 10 days of purchase, it will receive a discount of 2% of the net invoice amount and that the latest date for the settlement of bill is within the next 30 days of purchase. </em>

The cost of the inventory would be the sum of the next purchase cost , shipping charges, storage fees and insurance fee

Net purchase cost net of discount =  2,000 - 40= 1,960

Cost of inventory= 1,960 + 300 + 50 +100 =$2410

Cost of inventory = $2,410

6 0
3 years ago
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