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
Arada [10]
3 years ago
14

Oriole Company uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $28

0000 and credit sales are $2810000. Management estimates that 5% of accounts receivable will be uncollectible. What adjusting entry will Oriole Company make if the Allowance for Doubtful Accounts has a credit balance of $2800 before adjustment
Business
1 answer:
Tju [1.3M]3 years ago
8 0

Answer:

Dr. Bad debt expense. $11,200

---------To Allowance for doubtful accounts $11,200

Explanation:

Given that:

Accounts receivable balance = $280,000

Total credit sales = $2,810,000

5% of accounts receivables will be bad debt = $280,00 × 5% = $14,000

Credit balance allowance for doubtful account = $2,800 and it must increase to $14,000 I.e $14,000 - $2,800 = $11,200

Adjusting journal entry

Dr Bad debt expense $11,200

-------- Cr Allowance for doubtful accounts $11,200

You might be interested in
Corey has two jobs offers for sales jobs. For job A, he would earn a monthly salary of $2,500 and no commission. For job B, he w
maks197457 [2]

Answer:

job B

Explanation:

.05*50000=2500  and he gets 1000 so his total would be 3500

7 0
3 years ago
Scott Bestor is an accountant for Westfield Company. Early this year, Scott made a highly favorable projection of sales and prof
Yuki888 [10]

Answer a

The stakeholder in this situation arer as follows =>

1. Scott

2. Managemnet of a Company

3. The Financial Community.

Answer b

Ethical Issues are ;

Loyalty of Scott towards Company and its management.

He should excercise due vigilence while making projections for sales.

Answer c

Possible Actions are

1. Ignore the matter

2. Inform then Boss or Management.

3. Inform the boss and follow the standard procedure

I would have told the management of the error I made if I were in his place, showing my integrity and loyalty to the company without realizing that my integrity might jeopardize my promotion. But being ethical and trustworthy will also benefit me in the long run.

3 0
3 years ago
Read 2 more answers
Cox, North, and Lee form a partnership. Cox contributes $201,000, North contributes $167,500, and Lee contributes $301,500. Thei
Masteriza [31]

Answer:

Lee's portion of income =$81, 900

Explanation:

<em>The income or loss would be shared according to the ratio of capital contributed. The ratio is the proportion of capital contribute per partner to the total pool of capital.</em>

Lee;s portion of income

= lees capital/total capital × reported income

= 301,500/(201,000+167,500+ 301,500)  × 182,000

= $81, 900

Lee's portion of income =$81, 900

3 0
3 years ago
Varmit-B-Gone is a pest control service that operates in a suburban neighborhood. The company attempts to make service calls at
lubasha [3.4K]

Answer:

VARMIT B-GONE

BUDGETED INCOME STATEMENT

sales revenue ( 90%*1500*2.4*80%*$80)              $207,360

Service cost :

variable cost                                          $17280

Maintenance and repair                        15,998

Depreciation                                           <u> 42,000</u>      <u>  75,278</u>

Gross profit                                                                 132,082

marketing and administrative cost :

Marketing (variable )                               10,440

administrative (fixed)(55,000*105%)       57,750                      

bad debt( 2%*207360)                          <u>   4,147    </u>      <u>  72,337</u>

net income                                                                   <u>  59,745</u>

Explanation:

service cost :

variable cost =  (24,000/3600)*2592 =  $17,280

maintenance and repairs = (22,000/3600)*2592 *101% =  $15,998

Marketing cost  = ($14,500/3600)*2592 =  $10,440

7 0
3 years ago
Charlena gives Megan the post of Vice-President of Procurement to express appreciation for Megan's hard work in stocking the she
Aliun [14]

Answer:

Apparent Authority

Explanation:

Based on the information provided within the question it seems that the authority that Charlene has given Megan is Apparent Authority. This term refers to a subtle authority given to an individual which a reasonable third party would understand that they are an agent acting on behalf of their employer. Such an example would be an employee driving a UPS truck, any reasonable person would see the UPS truck as a sign that the individual driving has authority to act on behalf of the UPS company. The UPS truck is similar to the business card that Megan has, giving her apparent authority to act on behalf of Thrift City.

8 0
3 years ago
Read 2 more answers
Other questions:
  • Indicate the correct term to each description of a financing agent, activity, setting, or instrument.
    13·1 answer
  • Faye works as an administrator and receptionist for Garage Door Store. The store withholds federal taxes from Faye's pay, and co
    13·1 answer
  • Question 1
    10·1 answer
  • What's the present value of a perpetuity that pays $250 per year if the appropriate interest rate is 5%
    7·1 answer
  • The Constitution sets forth specific powers that can be exercised by the federal government and provides that the federal govern
    10·1 answer
  • David borrows $230,000 to buy a house. The mortgage rate is 4.5 percent and the loan period is 25 years. Payments are made month
    6·1 answer
  • g Vaughn Manufacturing purchased a new machine on October 1, 2022 at a cost of $124,800. The company estimated that the machine
    5·1 answer
  • A focused differentiation strategy requires offering unique features that fulfill the demands of a narrow market. All of the fol
    13·1 answer
  • Given the following selected information on McMillen's Chocolate, Inc., calculate Cash Flow from Operating Activities for 2012.
    13·1 answer
  • The manager of the customer service division of a major consumer electronics company is interested in determining whether the cu
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!