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Harrizon [31]
2 years ago
6

Historical Art is a new business. During its first year of operations, credit sales were $50,000 and collections from credit sal

es were $34,000. One account for $500 was written off. Management uses the percent-of-sales method to account for bad debts expense and estimates 3% of credit sales to be uncollectible. the ending balance of allowance for bad debts account is?
A. 1,000
B. 2,505
C. 1,500
D. 465
Business
1 answer:
Harrizon [31]2 years ago
8 0

Answer:

C. 1,500

Explanation:

Credit Sales x 3%

$50,000 x 0.03 = $1,500

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Mocha Company manufactures a single product by a continuous process, involving three production departments. The records indicat
elixir [45]

Answer:

Given that,

Direct materials = $100,000

Direct labor = $125,000

Applied factory overhead for Department 1 = $150,000

Direct materials = $50,000

Direct labor = $60,000

Applied factory overhead for Department 2 = $70,000

Therefore, the journal entry is as follows:

Work in Process - Department 3 A/c Dr. $555,000

            To Work in Process - Department 2            $555,000

(To record the flow of costs into Department 3 during the period)

Workings:

Work in Process - Department 3:

= $100,000 + $125,000 +  $150,000 + $50,000 + $60,000 + $70,000

= $555,000

5 0
3 years ago
On December 31, 2017, Jerome Company has an accounts receivable balance of $316,000 before any year-end adjustments.
katovenus [111]

Answer:

The Allowance for Uncollectible Accounts at December 31, 2017 is $10,430

Explanation:

In order to calculate the Allowance for Uncollectible Accounts at December 31, 2017 we would have to make the following calculation:

Allowance for Uncollectible Accounts at December 31, 2017=Estimated Allowance 1-30 days+Estimated Allowance 31-60 days+Estimated Allowance 61-90 days+Estimated Allowance over 90 days

Estimated Allowance 1-30 days=Balance*% Uncollectible

Estimated Allowance 1-30 days=$152,000*1%=$1,520

Estimated Allowance 31-60 days=$87,000*2%=$1,740

Estimated Allowance 61-90 days=$50,000*3%=$1,500

Estimated Allowance over 90 days=$27,000*21%=$5,670

Allowance for Uncollectible Accounts at December 31, 2017=$1,520+$1,740+$1,500+$5,670

Allowance for Uncollectible Accounts at December 31, 2017=$10,430

5 0
3 years ago
Jerry quarry sells building stone in a perfectly competitive market. At a its current level of building stone production, jerry
GaryK [48]

Answer:

increase its production of building stone

Explanation:

4 0
3 years ago
The following balances were taken from the general ledger of Doogie Corporation as of December 31. All balances are normal. Cash
love history [14]

Answer:

Please refer to the attached

Explanation:

Please refer to the attached.

Note that in trial balance Debit side must always be equal to debit side

7 0
3 years ago
Consider a perfectly competitive market in which all firms have the same costs. Choose the statement that is incorrect.
Furkat [3]

Answer:

B. The market demand is perfectly elastic at the market price. °

Explanation:

As we know that in the case of perfect competitive market there is a big number of sellers and buyers who sells same kind of product, there is no entry and exit barriers also the firm is a price taker

In addition to this, the market price and output would be measured by the supply and demand force. The profit maximizing output for every firm would considered the market price with the prescribed output and at the time when firm is shutdown so the market price would below the average variable cost

So the option b is incorrect

3 0
2 years ago
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