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
Brums [2.3K]
3 years ago
15

At the end of the current year (before adjusting entries), Autumn Corporation had a balance of $76,000 in Accounts Receivable an

d a credit balance of $11,000 in Allowance for Uncollectible Accounts. Service revenue (all on credit) for the year totaled $490,000.
Requirement 1:
Using the percent-of-sales method, calculate the amount of Uncollectible-Account Expense if Vacay Corporation estimates its uncollectible-account expense using a rate of 5% of credit sales.
What is the ending balance of the Allowance for Uncollectible Accounts under this scenario?
Requirement 2:
Now assume that Vacay Corporation uses the aging-of-receivables method. Vacay Corporation estimates that its Allowance for Uncollectible Accounts should have a credit balance of $27,000.
Calculate the amount of its Uncollectible-Account Expense.
What is the ending balance of the Allowance for Uncollectible Accounts under this scenario?
Business
1 answer:
astra-53 [7]3 years ago
6 0

Answer:

?????????

Explanation:

You might be interested in
Allowance for Doubtful Accounts has a debit balance of $2,300 at the end of the year (before adjustment). The company prepares a
Alina [70]

Answer:

d. Debit Bad Debt Expense, $34,200; credit Allowance for Doubtful Accounts, $34,200

Explanation:

allowance balance                           2,300 debit

estimated uncollectible accounts   31,900 credit

adjustment needed                         34,200 credit

We need to adjust the allowance to our estimated uncollectible account. Currently, it has 2,300 debit balance. We need to increase it to 31,900

If we think it in two steps:

We need to credit by 2,300 to have zero balance,

and then 31,900 to reach the expected uncollectible amount

in total a credit for 34,200 needs to be done

<u>The adjusting entry will be:</u>

bad debt expense                       34,200 debit

allowance for doubtful accounts                        34,200 credit

8 0
3 years ago
Macro economic misery diminished during the first reagan administration, which means that the phillips curve'
tensa zangetsu [6.8K]
Had to look for the options and here is my answer. What it means when there is a decrease in the Macro economic misery during the first Reagan administration is that the Phillips Curve has shifted from right to left. This implies that there is an ease of the trade-off between the unemployment and inflation. Hope this answer helps.
7 0
3 years ago
All sales are made on credit. Based on past experience, the company estimates 1% of credit sales to be uncollectible. What adjus
fenix001 [56]

Answer:

Debit : Bad Debts account : $2000 (appearing in the income statement)

Credit : Provision for doubtful debts account : $2000 (appearing in the balance sheet)

Explanation:

This is an example of provision for doubtful debts. Provision for doubtful debts is an estimated amount of bad debts from accounts receivables that has been issues but not yet collected. This is done under the accrual accounting concept where an expense is identified as soon as invoices have been issued rather than waiting long periods to find out which invoice is irrecoverable. It is typically an estimate based on past experience.

In this question, the sales value has not been provided, hence an assumption is made:

Sales : $200,000

If provision for doubtful debts is 1% of sales and all sales is on credit, then the provision for doubtful debts amount is = 1% x $200,000 = $2000

Provision for doubtful debts is an accounts receivable contra account and thus has a credit balance and is recorded in the balance sheet, listed directly under accounts receivables.

The entry is recorded as:

Debit : Bad Debts account : $2000 (appearing in the income statement)

Credit : Provision for doubtful debts account : $2000 (appearing in the balance sheet)

5 0
3 years ago
A firm agreed to pay its workers ​$2525 an hour in 2016 and ​$4141 an hour in 2017. The price level for these years was 241 in 2
NemiM [27]

Answer:

(a) 10.4%; 16.73%

(b) 6.33%

Explanation:

Given that,

Wages paid to the workers in 2016 = $25 per hour

Price level in 2016 = 241

Wages paid to the workers in 2017 = $41 per hour

Price level in 2017 = 245

Real wage rate in 2016:

= (Nominal wages ÷ Price level) × 100

= ($25 ÷ 241) × 100

= 0.104 × 100

= 10.4%

Real wage rate in 2017:

= (Nominal wages ÷ Price level) × 100

= ($41 ÷ 245) × 100

= 0.1673 × 100

= 16.73%

Therefore, the real wage increase received by these workers in​ 2017 is calculated as follows:

= Real wage rate in 2017 - Real wage rate in 2016

= 16.73% -  10.4%

= 6.33%

Hence, these workers do get a raise between the two years.

8 0
3 years ago
Imagine that the Brazilian aircraft manufacturer Embraer purchases a 10 percent share of a Canadian aircraft distribution compan
otez555 [7]

Answer: Forward Integration

Explanation:

Forward integration is a process where a company takes over the control of another company that is further along in the value chain so that it might be able to sell or distribute is goods more effectively. For example, an oil company taking over a petroleum products company.

In this scenario, the Brazilian company purchased a huge part of a company further along in distribution in order to facilitate better sales so this is forward integration.

6 0
3 years ago
Other questions:
  • The Baldwin company wants to decrease its plant utilization for Bold by 15%. How many units would need to be produced next year
    10·1 answer
  • Kay &amp; Maggie's, a beauty salon, is conducting a survey to find out how satisfied its customers are with the service provided
    9·1 answer
  • Tom, an art history professor owned and lived in a home in Dubuque, Iowa, for the past four years. He spends a year in Italy aft
    5·1 answer
  • Which would be the best economic measure to compare standards of living among nations over time?
    14·1 answer
  • Jeremy had a starting balance of $122.00 in his savings passbook. He made these transactions: Deposits of $68.52 and $46.35; Wit
    6·2 answers
  • When do shortages occur? When many people are unemployed. Whalen people have trouble supplying the goods and services at curt pr
    6·2 answers
  • Global Exporters wants to raise $31 million to expand its business. To accomplish this, it plans to sell 20-year, $1,000 face va
    9·1 answer
  • Một người tiêu dùng có thu nhập I = 10.000 ngàn đồng/tháng để mua 2 hàng hóa X và Y. Giá của hàng hóa X là Px = 20 ngàn đồng/kg
    8·1 answer
  • Brie has a really busy day. She has several tasks to do and she needs to get them all done by the end of the day. She’s worried
    6·1 answer
  • In reviewing the purchase request package, you should ensure finding is available and?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!