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
Helen [10]
3 years ago
6

Superior Company has provided you with the following information before any year-end adjustments: Net credit sales are $131,750.

Historical percentage of credit losses is 3%. Allowance for doubtful accounts has a credit balance of $400. Accounts receivables ending balance is $43,500. What is the estimated bad debt expense using the percentage of credit sales method
Business
1 answer:
aleksklad [387]3 years ago
5 0

Answer:

$3,553

Explanation:

Credit losses = Net credit sales × Historical percentage of credit losses

= $131,750 × 3%

= $3,953

Allowance for doubtful account has a credit balance of $400

The estimated bad debt expense can therefore be calculated as:

Bad debt expense = Credit losses - Allowance for doubtful accounts credit balance

= $3,953 - $400

= $3,553

Hence, the estimated bad debt expense using the percentage of credit sales method is $3,553

You might be interested in
A formalized report that summarizes your current financial situation, analyzes your financial needs, and recommends future finan
Bezzdna [24]

Answer:

financial plan.

Explanation:

4 0
3 years ago
For each item listed below, indicate the allocation terminology for the item. Use the following terms for your answer:
nexus9112 [7]

For each item listed the allocation terminology for the items are as follows:

Amortization: Copyrights, Patents, Trademarks and Annual licensing fees.

Depreciation:  Buildings, Equipment and Land Improvements.

Depletion: None.

None of these: Land, Research and Development Costs and Franchises.

<u>Explanation:</u>

Throughout accounting, amortization applies to multiple-period distribution of revenues. The concept is used for two isolated processes: loan amortization and asset amortization. Depreciation is the reduction in asset value and the process used to redeploy or "write down" a tangible asset's expense (like equipment) over its expected life period.

Depletion is a term of accounting and taxation generally used in coal, forestry, petroleum, or other related industries. Depletion is identical to depreciation in that it is an accounting and tax tracking system for cost recovery.

8 0
3 years ago
organizations design and implement systems to capture the details of transactions involved in each business
IgorLugansk [536]

Organizations design and implement accounting information systems to capture the details of transactions involved in each business.

<h3>What is accounting information?</h3>

Accounting information is fed into an accounting information system that uses computers to process data. It records and tracks all the accounting activity of the business by making use of information technology systems and resources.

to know more about accounting information go to the given link:

brainly.com/question/28099511

#SPJ4

4 0
2 years ago
wist Corp. has a current accounts receivable balance of $330,800. Credit sales for the year just ended were $3,804,200. a. What
Alex17521 [72]

Answer:

Receivables turnover = 11.50 times

Days' sales in receivables = 31.74 days

Average collection period = 31.74 days

Explanation:

<u>Receivables Turnover Ratio</u>

Receivables turnover = Credit Sales / Receivables

                                    = $3,804,200 / $330,800

                                     = 11.50 times

Receivables turnover ratio measures how many times a company's receivables are converted to cash in a period. A high receivables turnover ratio can indicate that a company’s collection of accounts receivable is efficient and that the company has a high proportion of quality customers that pay their debts quickly.

<u>Days' sales in Receivables/ Average Collection Period</u>

Days' sales in receivables = 365 days / Receivables turnover

                                            = 365 / 11.50

                                            = 31.74 days

On average, credit customers took 31.74 days to pay off their accounts.

The days' sales in receivable ratio which is also known as the average collection period tells you the number of days it took on average to collect the company's accounts receivable during the past year.

6 0
3 years ago
Tore Company's records reveal the following information regarding its inventory. Beginning inventory was $100,000 at cost and 16
vodka [1.7K]

Answer:

$150,000

Explanation:

Ending inventory, the value of goods available for sale at the end of the accounting period, plays an important role in reporting the financial status of a company and can best be figured out using the equation,

Ending Inventory = Beginning Inventory + Net Purchases - Cost of Goods Sold (or COGS)

Beginning Inventory = $160,000 in retail

Net purchases = $500,000 in retail +$10,000 Markups

Cost of goods sold = $500,000

So, End Inventory = 160,000+500,000+10,000-500,000

End Inventory = $150,000

4 0
3 years ago
Other questions:
  • If a competitive firm cannot earn a profit at any level of output during a given shortminusrun ​period, then which of the follow
    7·1 answer
  • Daphne bought a dishwasher and paid for it with her credit card. The company delivered the dishwasher to her the very same day.
    9·1 answer
  • Moon flower cosmetics company executives are aware that their asian customer base is interested in advanced skin care treatments
    11·1 answer
  • Government survey takers determine that typical family expenditures each month in the year designated as the base year are as fo
    5·1 answer
  • Glasgow Enterprises started the period with 65 units in beginning inventory that cost $3.40 each. During the period, the company
    10·1 answer
  • Making a good first impression is vital, since we tend to form an opinion in about
    8·2 answers
  • A manager wants to motivate the maintenance staff to be more productive. She starts by providing training and assures employees
    13·1 answer
  • a. Computer stocks currently provide an expected rate of return of 16%. MBI, a large computer company, will pay a year-end divid
    6·1 answer
  • g you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product
    11·1 answer
  • I have 2 questions and I need help. I am giving 20 points, 10 for each question.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!