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
oee [108]
3 years ago
13

The following information relates to a companyâs accounts receivable: gross accounts receivable balance at the beginning of the

year, $330,000; allowance for uncollectible accounts at the beginning of the year, $22,000 (credit balance); credit sales during the year, $1,100,000; accounts receivable written off during the year, $13,000; cash collections from customers, $1,000,000. Assuming the company estimates that future bad debts will equal 10% of the year-end balance in accounts receivable.
Required:
a. Calculate the year-end balance in the allowance for uncollectible accounts.
b. Calculate bad debt expense for the year.
Business
1 answer:
erastovalidia [21]3 years ago
5 0

Answer:

A. $41,700

B. $32,700

Explanation:

a. Calculation to determine the year-end balance in the allowance for uncollectible accounts.

Beginning account receivable$330,000

Add Credit sale $1,100,000

Less Account receivable written off ($13,000)

Less Cash collected ($1,000,000)

Ending account receivable

$417,000

Year-end balance in the allowance for uncollectible accounts $41,700

($417,000 * 10%)

Therefore the year-end balance in the allowance for uncollectible accounts will be $41,700

b. Calculation to determine the bad debt expense for the year

Account receivable written off $13 000

Add Year-end balance in the allowance for uncollectible accounts $41,700

Less Beginning balance in the allowance for uncollectible accounts ($22,000)

Bad Debt Expense $32,700

Therefore the bad debt expense for the year will be $32,700

You might be interested in
Marshall's & Co. purchased a corner lot in Eglon City five years ago at a cost of $640,000. The lot was recently appraised a
Gala2k [10]

Answer:

$1,780,000

Explanation:

The computation of the initial cash flow for this building project is shown below:

= Estimated building cost + appraised cost of the lot

= $1,110,000 + $670,000

= $1,780,000

Simply we added the estimated building cost and the appraised cost of the lot so that the initial cash flow amount can come.

All other information which is given is not relevant. Hence, ignored it

3 0
3 years ago
Help!!!!!
uysha [10]
1. revenue 2. income 3. graph 4. equity 5. balance sheet 6. income taxes
5 0
3 years ago
On March 1, a business paid $3,840 for a twelve-month liability insurance policy. On April 1, the business entered into a two-ye
Helen [10]

Answer:

a. Insurance expense for the month of march

= ($3,840 / 12 months) * 1 month

= $320 per month

b. Balance in prepaid insurance as of March 31

= ($3,840 / 12 months) *11 months remaining

= $3,520

c. Equipment rent expense for the month of April

= ($23,160 / 24 months) * 1 month

= $965

d. Balance in prepaid equipment rental as of April 30

= Nil ($0) as it is not mentioned that payment has been made, it is only mentioned that two year rental contract has been entered into.

4 0
3 years ago
Wildhorse Company accumulates the following data concerning a mixed cost, using miles as the activity level. Miles Driven Total
tangare [24]

Answer:

Variable cost per unit= $1.4 per unit

Explanation:

Giving the following information:

Miles Driven Total Cost Miles Driven Total Cost

January: 8,000 $14,120

March: 8,550 $14,979

February: 7,490 $13,495

April: 8,195 $14,490

To calculate the variable cost under the high-low method, we need to use the following formula:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (14,979 - 13,495) / (8,550 - 7,490)

Variable cost per unit= $1.4 per unit

7 0
3 years ago
While working in the yard, Tina found a beat-up ring. Becca, an eighteen-year old neighbor, came over to visit and liked the rin
andreev551 [17]

Answer:

The correct answer is letter "B": A gift inter vivos.

Explanation:

A gift inter-vivos refers to the transfer of a property from one party to another while the donor is alive. This transfer must be celebrated through a written agreement providing the beneficiary absolute ownership of the property. In such a case, the donor cannot request the property back and gives up any right over it.

The beneficiary must accept the gift for the transfer to be complete and if the property has value, the beneficiary will accept it as well.

<em>The issue between Tina and Becca relies on not having signed any document for the transfer of the diamond ring but they are involved in an inter-vivos gift.</em>

8 0
3 years ago
Other questions:
  • A project will produce an operating cash flow of $31,200 a year for 7 years. The initial fixed asset investment in the project w
    13·1 answer
  • According to the chart below, which sets of IQ scores fall in the bottom 50th percent of frequency?
    15·2 answers
  • Nordstrom, an upscale department store, has a well-known reputation for going the extra mile to serve its customers. This reputa
    14·1 answer
  • What is the nash equilibrium for this​ game?
    14·1 answer
  • Bonita uses the periodic inventory system. For the current month, the beginning inventory consisted of 7300 units that cost $12.
    14·1 answer
  • Miranda works 40 hours a week at a wage rate of ​$25. Thus, her total weekly income is ​$1000. On this​ income, she pays total t
    12·1 answer
  • Bates Company currently produces and sells 4,000 units of a product that has a contribution margin of $5 per unit. The company s
    10·1 answer
  • Renata and Danuta would like to form a business providing take-out meals to homebound destitute residents of Las Vegas. The meal
    10·1 answer
  • Dual Advertising/Co-branding partnership what is it?
    11·1 answer
  • In the case of an undisclosed principal, a third party
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!