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gizmo_the_mogwai [7]
4 years ago
13

Concord Corporation has outstanding accounts receivable totaling $1.29 million as of December 31 and sales on credit during the

year of $6.30 million. There is also a debit balance of $6100 in the allowance for doubtful accounts. If the company estimates that 2% of its accounts receivable will be uncollectible, what will be the balance in the allowance for doubtful accounts after the year-end adjustment to record bad debt expense?
a. $25678.
b. $25800.
c. $19700.
d. $31900.
Business
2 answers:
olga nikolaevna [1]4 years ago
4 0

Answer:

Balance of uncollectible accounts    - $ 25,800

Explanation:

Computation of Bad debts expense

The allowance of uncollectible accounts are calculated as a percentage of outstanding receivables.

Accounts receivable  balance                                                $ 1,290,000

Percentage estimated to be uncollectible                                       2 %

Estimated balance of uncollectible accounts                     $     25,800

The balance in the uncollectible account shall be 2 % of receivable i.e $ 25,800.

The adjustment entry shall be debited at $ 31,900, being the balance amount plus the debit balance in the allowance account prior to adjustment.

strojnjashka [21]4 years ago
3 0

Answer:

Concord Corporation has outstanding accounts receivable totaling $1.29 million as of December 31 and sales on credit during the year of $6.30 million. There is also a debit balance of $6100 in the allowance for doubtful accounts. If the company estimates that 2% of its accounts receivable will be uncollectible, the balance in the allowance for doubtful accounts after the year-end adjustment to record bad debt expense will be  $25800 - option B.

Explanation:

Estimated uncollectible = 2% of account receivables

Allowance account’s adjusted balance must be the same as estimated uncollectible balance.

Therefore, the adjusted Allowance for Doubtful Account = $1.29 millions x 2%

= $1.29*0.02

The adjusted Allowance for Doubtful Account  = $ 0.0258 millions or $ 25,800.

Therefore, the correct answer is $ 25,800 - option B.

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5 0
3 years ago
An example of business-to-business sales is selling ________.
uysha [10]

Answer:

a) grocery items to grocery stores

Explanation:

Business -to -business (B2B) sales occur between different companies unlike Business to Consumer (B2C) sales that are between a company and a individual customers.  To answer this question, you identify an option that shows that a wholesaler sells goods to a retailer who then sells to a customer which is supply of grocery items to grocery stores.

'Automobile insurance to a pet shop owner' and 'evening gowns to Oscar award nominees' are B2C. And 'a washing machine to a theatre company' is irrelevant

5 0
3 years ago
Sapphire sells two products: ordinary laptops and premium laptops. Ordinary laptops are priced at $650 each and premium laptops
stira [4]

Answer:

The break-even point in units for ordinary laptops is 2,100 units.

Explanation:

Contribution Margin per unit (ordinary) = Selling Price - Variable cost

                                                                 = $650 -$605

                                                                 = $45

Contribution Margin per unit (premium) = Selling Price - Variable cost                                        = $1,150 -$1,090

= $60

$45* 4x + $60x = Fixed Costs = $126,000

= 180x +60x = $126,000

=240x =$126,000 = 525 units

Ordinary computers = 4x

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Therefore, The break-even point in units for ordinary laptops is 2,100 units.

6 0
4 years ago
Gina and Bill are managers for two separate projects; both freely express their anger at work. Compared to Bill, Gina is more li
cestrela7 [59]

The answer to the question is Gina (B) is more likely to be perceived as overemotional and incompetent.

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3 0
3 years ago
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Answer: $187 ⇒ Amount should ABC report as a net pension liability (asset) at Dec 31, 2018

Explanation:

Given that,

Data for 2018 as of Dec 31, 2018 are as follows:

Projected benefit obligation = $634

Accumulated benefit obligation = $418.44

Plan assets at fair value = $821

Pension expense = $192.48

Employer's cash contribution (end of year) = $361

The amount should company report as a net pension liability at Dec 31, 2018 as follows:

Net Pension Liability =  Projected benefit obligation - Plan assets at fair value

= $634 - $821

= $187 ⇒ Amount should ABC report as a net pension liability (asset) at Dec 31, 2018

6 0
3 years ago
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