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Lina20 [59]
3 years ago
15

A company used the percent of sales method to determine its bad debts expense. At the end of the current year, the company's una

djusted trial balance reported the following selected amounts: Accounts receivable $ 445,000 Debit Allowance for Doubtful Accounts 1,350 Debit Net Sales 2,200,000 Credit All sales are made on credit. Based on past experience, the company estimates 2.0% of its net sales to be uncollectible. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense
Business
1 answer:
MA_775_DIABLO [31]3 years ago
5 0

Answer:

Dr Bad Debt Expense $44,000

Cr Allowance for Doubtful Accounts $44,000

Explanation:

Preparation of What adjusting Journal entry should the company make at the end of the current year to record its estimated bad debts expense

Based on the information given the adjusting Journal entry that the company should make at the end of the current year to record its estimated bad debts expense will be:

Dr Bad Debt Expense $44,000

Cr Allowance for Doubtful Accounts $44,000

(Net Sales 2,200,000*Estimated 2.0% of net sales)

(Being to record estimated bad debts expense)

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Newton Company is considering the purchase of an asset that will provide a depreciation tax shield of $19,200 per year for 10 ye
kumpel [21]

Answer:

$480,000

Explanation:

The computation of the depreciable cost of the new asset is shown below:

Given that

Depreciation tax shield = $19,200

Tax rate= 40%

Now  

Actual Depreciation for the year is

= $19,200 ÷ 40%

= $48,000

Now  

Total Depreciation cost for 10 years  is

= $48,000 × 10

= $480,000

6 0
3 years ago
A. Think of a product and describe the stages of production the product goes through.
Alekssandra [29.7K]
The life cycle of a product is associated with marketing and management decisions within businesses, and all products go through five primary stages: development, introduction, growth, maturity, and decline. Each stage has its costs, opportunities, and risks, and individual products differ in how long they remain at any of the life cycle stages.
6 0
3 years ago
Carol has decided to open a Vietnamese restaurant in her neighborhood. She will be solely responsible for the management of the
bogdanovich [222]

Answer:

e. She may find it difficult to deal with the stress of rent increase.

Explanation:

Carol has decided to open a Vietnamese restaurant solely. She has adopted 'sole proprietorship' form of business.

Sole Proprietorship is a form of business owned, run & managed by a single entrepreneur (proprietor).

This form of business has following advantages & disadvantages:

  • Advantages : Easy formation, dissolution ; sole, flexible, quick decision making
  • Disadvantages : Limited Capital ; Entrepreneur Unlimited Liability ; Less expansion scope.  

So : Carol being a sole proprietor won't face problems like - difficulty in quick & independent decision making, adaptability to market demand, focus on specific consumer groups .

She as a sole proprietor, would rather face issue like limited capital funds & hence would - find it difficult to deal with stress of rent increase.

3 0
4 years ago
Sociotechnical systems theory, quantitative management, organizational behavior, and systems theory are all examples of ______ a
victus00 [196]

Sociotechnical systems theory, quantitative management, organizational behavior, and systems theory are all examples of scientific management approaches to management.

<h3>What is scientific management?</h3>

Scientific management is a theory that analyzes how workflows this is to improve the efficiency of the economy.

  • It includes logic, rationality, sociotechnical systems theory, quantitative management, and organizational behavior.

Therefore, sociotechnical systems theory, quantitative management, organizational behavior, and systems theory are all examples of scientific management approaches to management.

For more details on scientific management kindly check brainly.com/question/13191706

8 0
2 years ago
Which short-term financial managers are involved with selling on credit and are directly responsible to the vice president of fi
gregori [183]

Answer:

The credit manager, and the Controller

Explanation:

The credit manager is responsible for maintaining the credit policy, in order to fulfil this target they are responsible to look at the sales and ensure the credit sales are in the sales limit.

Further that the company do not have the bad debts, it shall verify each customer properly that they have enough funds, and ensure their credibility.

Controller is responsible for maintaining the financial records of accounts, and reporting the transactions to managers.

Accordingly, Credit manager along with controller are directly responsible to the vice president of finance.

5 0
3 years ago
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