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kodGreya [7K]
3 years ago
11

During its first year of operations, Fisher Plumbing Supply Co. had sales of $480,000, wrote off $7,700 of accounts as uncollect

ible using the direct write-off method, and reported net income of $52,800. Determine what the net income would have been if the allowance method had been used, and the company estimated that 1 1/2% of sales would be uncollectible.
Business
1 answer:
Ahat [919]3 years ago
8 0

Answer:

Sales                                       $480,000

<em>Less: Expenses (Bal Figure)  $419,500</em>

Less: Write Off Account         <u>$7,700    </u>

Net Income                             <u>$52,800</u>

If Allowance Method Is Used  

Sales                                                                 $480,000

Less: Expenses                                                $<em>419,500</em>

Less: Write Off Account (1.5% of 480,000)    <u>$7,200</u>

Net Income                                                       <u>$53,300 </u>

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Answer:

c. Resource and capacity management.

Explanation:

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3 0
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According to Gerzema Where are some of the changes that consumers or making when it comes to spending money or buying an item wh
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Answer: The answer is given below

Explanation:

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3 years ago
The following transactions are February activities of Swing Hard Incorporated, which offers indoor golfing lessons in the northe
Greeley [361]

Answer:

A

cash        15,000 debit

accounts receivable 15,000 credit

B

cash            150 debit

   gift card liaiblity     150 credit

C

accounts receivable     4,000 debit

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D

cash           2,250 debit

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Explanation:

A

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Answer:

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