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
chubhunter [2.5K]
3 years ago
10

Wildhorse, Inc. had net sales in 2020 of $1,502,400. At December 31, 2020, before adjusting entries, the balances in selected ac

counts were Accounts Receivable $221,100 debit, and Allowance for Doubtful Accounts $3,000 credit. If Wildhorse estimates that 8% of its receivables will prove to be uncollectible.
Required:
Prepare the December 31, 2017, journal entry to record bad debt expense.
Business
1 answer:
sineoko [7]3 years ago
7 0

Answer and Explanation:

The journal entry is shown below:

Bad debt expense Dr  $14,668 ($221,100 × 8% - $3,000)

     To Allowance for doubtful debts $14,668

(Being bad debt expense is recorded)

Here the bad debt expense is debited as it increased the expense and credited the allowance for doubtful debt as it decreased the assets

You might be interested in
How can a company´s salespeople help with product development?
Marizza181 [45]

Answer:

Salespeople, who are on the front line interacting with customers, assume one of the most important roles in the product differentiation process. A well-informed customer will usually choose the product that offers the most value. There- fore, salespeople need to position their product with a value proposition.

6 0
3 years ago
Sigma Corporation applies overhead cost to jobs on the basis of direct labor cost. Job V, which was started and completed during
poizon [28]

Answer:

Overhead= $3,212

Explanation:

Giving the following information:

Sigma Corporation applies overhead costs to jobs based on direct labor cost.

Job W, which is still in process at year-end, shows charges of $2,700 for direct materials and $4,400 for direct labor.

Job V:

$6,300 for direct materials.

$8,500 for direct labor.

$6,205 for overhead on its job cost sheet.

First, we need to calculate the overhead rate.

Overhead rate= 6205/8500= $0.73 per direct labor dollar

Job W:

Direct labor= 4,400

Overhead= 4,400*0.73= $3,212

3 0
3 years ago
Abbott Inc. owns 30% of the outstanding voting shares of Berta Inc. On the date of acquisition, the fair value of Berta's equipm
Vitek1552 [10]

Answer: During the year after the acquisition, the undervalued equipment will exceed Abbott's investment revenue by $1,200.

Explanation:

Multiply the amount exceeded of its carrying value by the % shares owned by Abbott.

Then divide the result by the useful life value of Barta's equipments

= (20,000 x 30%) / 5

= $1,200

3 0
3 years ago
Which government branch creates the federal tax law
wolverine [178]

The answer is Congress :)

4 0
3 years ago
Read 2 more answers
What is the tax penalty for no health insurance 2016?
alukav5142 [94]
$695 per adult
$347.50 per child under 18<span>
Maximum: $2,085</span>
6 0
3 years ago
Other questions:
  • A television commercial advertises that a certain type of battery will last, on the average, 20 hours longer than twice the life
    9·1 answer
  • The blackwell group is unable to obtain financing for any new projects under any circumstances. which term best applies to this
    9·1 answer
  • Following are financial statement numbers and ratios for CVS Health Corporation for the year ended December 31, 2016. Total reve
    8·1 answer
  • Rio Coffee Shoppe sells two coffee drinks—a regular coffee and a latte. The two drinks have the following prices and cost charac
    10·2 answers
  • Joe sold gold coins for $1,000 that he bought a year ago for $1,000. He says, "At least I didn't lose any money on my financial
    11·1 answer
  • The common stock of Alexander Hamilton Inc. is currently selling at $120 per share. The directors wish to reduce the share price
    11·1 answer
  • What is the difference between technical efficiency and economic efficiency? Technical efficiency in production means that the m
    13·2 answers
  • What will be the inventory Cost that was valued at 286000 valued at<br>.And obsolete cost is 8400​
    14·1 answer
  • Based on the following information, determine the location quotient for Amusement City and whether this city has a competitive a
    12·1 answer
  • A+student+receives+a+35%+similarity+rate+on+their+lopeswrite+score. +what+does+this+mean+and+what+should+that+student+do+before+
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!