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
dybincka [34]
2 years ago
12

Ingrid Inc. has strict credit policies and only extends credit to customers with outstanding credit history. The company examine

d its accounts and determined that at January 1, 2019, it had balances in Accounts Receivable and Allowance for Doubtful Accounts of $478,000 and $7,900 (credit), respectively. During 2019, Ingrid extended credit for $3,075,000 of sales, collected $2,715,000 of accounts receivable, and had customer defaults of $4,280. Ingrid performed an aging analysis on its receivables at year end and determined that $6,800 of its receivables will be uncollectible.
Required:
a. Calculate Ingrid's balance in accounts receivable on December 31, 2018, prior to the adjustment.
b. Calculate Ingrid's balance in allowance for doubtful accounts on December 31, 2018, prior to the adjustment.
c. Prepare the necessary adjusting entry for 2018.
Business
1 answer:
Leviafan [203]2 years ago
6 0

Answer:

Ingrid Inc.

a. Ingrid's balance in accounts receivable on December 31, 2018, prior to the adjustment is:

= $833,720.

b. Ingrid's balance in allowance for doubtful accounts on December 31, 2018, prior to the adjustment is:

= $6,800.

c. Adjusting Entry:

Debit Bad Debts Expense $3,180

Credit Allowance for Doubtful Accounts $3,180

To record the bad debts expense for the year and bring the balance of the Allowance for Doubtful Accounts to a credit balance of $6,800

Explanation:

a) Data and Calculations:

January 1, 2019 balances:

Accounts Receivable $478,000

Allowance for Doubtful Accounts $7,900 (credit)

Accounts Receivable $3,075,000 Sales Revenue $3,075,000

Cash $2,715,000 Accounts Receivable $2,715,000

Allowance for Doubtful Accounts $4,280 Accounts Receivable $4,280

Ending balance:

Allowance for Doubtful Accounts $6,800 (Credit)

T-Accounts

Account Titles                      Debit      Credit

Beginning balance         $478,000

Sales Revenue            $3,075,000

Cash                                               $2,715,000

Allowance for Doubtful Accounts       $4,280

Ending balance                                $833,720

Allowance for Doubtful Accounts

Account Titles                      Debit      Credit

Beginning balance                            $7,900

Accounts Receivable      $4,280

Bad Debts Expense                             3,180

Ending balance               $6,800

You might be interested in
In the BIG BUCKS LOTTERY, the chance of winning a $10 prize is 1%. What is your best guess about how many people would win a $10
3241004551 [841]

Answer:

The correct answer would be, 10 Persons.

Explanation:

If there are 1000 people in the Big Bucks lottery and there is a 1 percent chance of winning 10 dollars prize if all 1000 people buy the lottery ticket of 10 dollars. If every person buys 10 dollar lottery ticket, then the chances of winning people would be calculated as follows:

Total number of People = 1000

Chances of winning the lottery = 1%

So How many people would win 10 dollar lottery = 1000 * 1%

= 1000 * 0.01

= 10 People.

So there are chances that 10 out of 1000 people will win the lottery.

5 0
3 years ago
Read 2 more answers
Why does the kyoto protocol allow a less-developed nation such as china to be exempt from some limits on emissions of greenhouse
OLga [1]
Economic development depends on industrial growth, which may increase greenhouse gas emissions. Hope this was helpful (:
5 0
2 years ago
If an investor does not diversify his portfolio and instead puts all of his money in one stock, the appropriate measure of secur
Lady_Fox [76]

If an investor does not diversify his portfolio and instead puts all of his money in one stock, the appropriate measure of security risk for that investor is the "stock's standard deviation."

<h3>What is standard deviation?</h3>

The standard deviation would be a statistic that calculates as square root of a variance and indicates the dispersion of the a dataset compared to its mean.

Its standard deviation is determined as the square root of the variance by determining the deviation of each data point from the mean.

Some key features regarding the  standard deviation, are-

  • The standard deviation of a dataset reflects its dispersion compared to its mean.
  • A square root of a variance is used to compute it.
  • In finance, standard deviation is frequently employed as a measurement of an asset's relative riskiness.
  • The volatile stock has a large standard deviation, whereas a description stock has a low deviation.
  • The standard deviation, on the other hand, assesses all ambiguity as risk, especially when it is in the investor's advantage, such as above-average profits.

To know more about  standard deviation, here

brainly.com/question/475676

#SPJ4

7 0
1 year ago
Budgeted Sales for January: 8,000 Units Budgeted Sales for February: 10,000 Units Budgeted Sales for March: 12,000 Units Beginni
blondinia [14]

Answer:

Production= 10400 units

Explanation:

Giving the following information:

Budgeted Sales for January: 8,000 Units

Budgeted Sales for February: 10,000 Units

Budgeted Sales for March: 12,000 Units

Beginning Finished Goods for January: 3,000

Units Pevensie Inc. plans to have an ending finished goods inventory of 20% of next month's projected sales.

We will assume that the ending finished goods of January reaches 20% required for February.

<u>February:</u>

(+)Budgeted Sales for February= 10,000 Units

(+)Ending finished goods= 12000*0,20= 2400 units

(-)Beginning finished goods inventory= 2000 units

Production= 10000+2400-2000= 10400 units

8 0
3 years ago
Expanding businesses often centralize distribution to create more efficient processes.
irina [24]
Hi, the correct answer is true. Hope I helped.
7 0
3 years ago
Other questions:
  • On April 30, 2015, Zono Electronics, Inc. made a payment of $3,500 to Imperial Distributors, a supplier. Choose the statement th
    13·1 answer
  • If your credit reports show different scores, what should you do?
    5·1 answer
  • Reuben Rubino is a Tax Professional working during the Emerald Advance offer period before tax season starts. He has taken and p
    13·1 answer
  • A homeowner in a sunny climate has the opportunity to install a solar water heater in his home for a cost of $2900. After instal
    15·1 answer
  • Jennifer has $10 to spend on tomatoes and cheese. The price of a pound of tomatoes is $2 and the price of a pound of cheese is $
    6·1 answer
  • High competition for and debates over natural resources affect the development of government policies
    6·1 answer
  • f the company estimates that it will need 55,480 pounds of raw material to satisfy production needs in March, then the raw mater
    8·1 answer
  • What are three strategies that you can use to make better financial decisions?
    13·2 answers
  • Help me <br> Can any one answer me these
    15·1 answer
  • What are five marketing strategies that retailers spend half of their annual budget on?
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!