Answer:
Debit : Allowance for doubtful debts = $2900
Credit : Accounts receivables = $2900
Explanation:
An account for allowance for doubtful debts is a contra account created, predicting that certain debtors will not be able to pay for the goods and services they purchased. This may be based on historical experiences. Doubtful debts aren’t officially uncollectible, it is simply an estimation made, but bad debts are, where you have officially written off a certain accounts receivable as uncollectible.
An allowance for doubtful debts is recorded in the balance sheet, directly under accounts receivables. Bad debts are recorded as an expense in the income statement. When there is an allowance for doubtful debts, the bad debts account is debited and the allowance for doubtful debts account is credited.
According to the question, the balance was $2,200 (Cr) in the allowance for doubtful debts account. The initial expected amount for allowance for doubtful debts was $5100 (Cr). This means that the difference was the amount that was declared as uncollectible and officially written off i.e. bad debts. Thus $2900 ($5100 -$2200) would have been confirmed as bad debts.
The entry to record the above transaction is:
Debit : Allowance for doubtful debts = $2900
Credit : Accounts receivables = $2900
Answer:
because of the product and the correct one is the one of the product is not working properly
Answer:
Credits are made to Common Stock $30,000 and Paid in capital in excess of Par value $12,000
Explanation:
The journal entry is shown below;
Cash $42,000 (3,000 shares at $14)
To Common Stock $30,000 (3,000 shares at $10)
To Paid in capital in excess of par value $12,000 (3,000 shares at $4)
(Being issuance of the common stock is recorded)
Here cash is debited as it increased the assets and credited the common stock & paid in capital as it also increased the stockholder equity
Answer:
The answer is C: Hyperinflation
Explanation:
Hyperinflation is high and accelerating form of inflation. It results in quick decline of the local currency`s real value. It also leads to increased prices of all goods and consumables
From the data,
In June 1922, 1 german Mark was equal to 0.003125 USD (1/320)
Whereas in December, 1922, the same german Mark was equal to 0.000125 USD. (1/8000)
Answer:
$6.71 per unit
Explanation:
The computation of average cost method is given below:-
Beginning Inventory
= 190 units × $7.30
= $1,387
Purchases
= 720 units × $7.30
= $5,256
Purchases
= 590 units × $5.80
= 3,422
Total units = 1,500
Total cost = $10,065
So, average cost per unit
Total cost ÷ Total number of units
= $10,065 ÷ 1,500
= $6.71 per unit
Therefore, to calculate the average cost per unit for May we simply divide 10,065 from 1,500
