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ozzi
3 years ago
12

The unadjusted trial balance at year-end for a company that uses the percent of receivables method to determine its bad debts ex

pense, reports the following selected amounts: Accounts receivable $ 431,000 Debit Allowance for Doubtful Accounts 1,390 Debit Net Sales 2,240,000 Credit All sales are made on credit. Based on past experience, the company estimates 2.5% of ending account receivable to be uncollectible. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense
Business
1 answer:
TEA [102]3 years ago
6 0

Answer:

Bad Debts Expense $9,385 & Allowance for Doubtful Accounts $9,385

Explanation:

Bad debt expense = ($431,000 *2.5%) - $1,390

Bad debt expense = $10,775 - $1,390

Bad debt expense = $9,385

Adjusted Entry

Debit - Bad Debts Expense $9,385

Credit - Allowance for Doubtful Accounts $9,385

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The bank received and accepted a payment worth $7,200 from a customer on the company’s behalf. Which journal entry adjustment sh
Oliga [24]

Answer:

A. Accounts receivable will be debited by $7,200.

Explanation:

Accounts receivable is the payments that customers owe to a business. It arises when a business sells goods to customers of credit. Accounts receivables are current assets as they represent money that the business expects to receive in the short term.

Recording the transaction for accounts receivable follows the principle for recording assets transactions.  An increase in assets is debited. The accountant will debit accounts receivable by an amount of $7200.

7 0
3 years ago
Read 2 more answers
Can an opinion be wrong? Isn’t everyone entitled to an opinion?
attashe74 [19]

Answer:

Yes

Explanation:

An opinion can indeed be wrong unless you based if of scientific facts and have evidence to back up your opinion. Everyone is indeed entitled to an opinion but not everyone listens to everyone’s opinion that is not backed up with facts.

3 0
1 year ago
An airline company must plan its fleet capacity and its long-term schedule of aircraft usage. For one flight segment, the averag
tresset_1 [31]

Answer:

112 customers per day

Explanation:

For computing the needed capacity requirement, first we have to find out the new utilization rate which is shown below:

Capacity cushion = 100% - average utilization rate

25% = 100% - average utilization rate  

So, the average utilization rate is 75%

Now the needed capacity requirement is

Utilization rate = Average output rate ÷ Maximum capacity × 100

75% = 84 ÷  Maximum capacity × 100

So, the maximum capacity is 112 customers per day

We simply applied the above formula to determine the needed capacity requirement

8 0
3 years ago
Unavoidable fixed costs are __________.
allsm [11]

Answer:

Irrelevant to the decision of whether to discontinue a product line because they will not differ between alternatives.

Explanation:

Unavoidable fixed costs can be defined as the costs that is sustained by an organization irrespective of if an activity is carried out or not.

Unavoidable costs are the costs that are encountered by a lot of businesses, this cost cannot be prevented even though production activities in the company are suspended in the short-run. These fixed costs are unavoidable and uncontrollable.

Unavoidable fixed costs is as a result of the various risks incurred by an organization inorder to stay relevant in the market. Example of unavoidable costs include tax payment, rental payments.

4 0
3 years ago
A store manager for Kroger noticed that several of his regular customers have stopped coming to his store. He also noticed that
sergiy2304 [10]

Answer: True- An uncontrollable change in the marketing environment

Explanation:

 According to the given question, The manager of the store is noticed that the regular customer of his store is reducing day by day and the customers starts shopping from Walmart super-center.

So, the main  fundamental marketing problem is illustrated based on the given scenario is that an uncontrollable change in marketing environment.

An uncontrollable factors basically influencing the various types of organizational factors such as performance, demographics and the technological factors.

 Therefore, The given answer is correct.

6 0
3 years ago
Read 2 more answers
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