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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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Steven consumes only two goods, both of which are normal goods. He is currently maximizing his utility in consumption of both go
zzz [600]

Answer:

The answer is: remain the same

Explanation:

The marginal utility of a good or service is how much better we feel when consuming an extra unit of that good or service. For example if we are very thirsty, the marginal utility of consuming a can of Coke is very large, but once our thirst is quenched, an extra can of Coke will not provide use with that much satisfaction as before.

If the price of a substitute good increases, the marginal utility of the good whose price didn't change, will remain the same.

Let's go back to the Coke example. An extra can of Coke will give me 5 more satisfaction units (I'm assuming I can measure satisfaction) and an extra slice of pizza will give me 7 more units of satisfaction. If the price of Coke increases from 50 cents to $1, its marginal utility will decrease. I will buy more pizza because the satisfaction I get from drinking Coke is now smaller.

4 0
3 years ago
Umber Mattresses has had issues with inventory in the past. Missed shipping and unexpected price hikes have caused production is
r-ruslan [8.4K]

Answer: E. switch to a multiple supplier approach

Explanation:

Since the company has had issues with inventory in the past, then the recommendation of the production manager should be that the company should switch to a multiple supplier approach.

By switching to multiple supplier, the company can compare prices and also have alternative suppliers to call in case there's a challenge with a particular supplier.

8 0
3 years ago
Presented below is information related to Donaldson Corp., for the year 2017. Net sales $1,950,000 Cost of goods sold 1,200,000
babymother [125]

Answer:

\left[\begin{array}{ccc}$Net Sales&&1950000\\$Cost of Goods sold&&1200000\\$Gross Profit&&750000\\$Operating Expenses:&&\\$selling expenses&&95,000\\$Administrative expenses&&70,000\\$Operating Profit&&585000\\\\$Other Revenues and Gains&&\\$Dividend Revenue&30000&\\$Interest Revenue&20000&50000\\&&635000\\$Other expenses and losses&&\\$Interest expense&45000&\\$goodwill impairment&75000&120000\\Income before Income tax&&515000\\\end{array}\right]

\left[\begin{array}{ccc}$Income before Income tax&&515000\\$Income tax&&154500\\$Income from continued operations&&360500\\&&\\$Discountinued&&\\$Gain at disposal&300000&\\$Loss from operations&220000&80000\\$Income tax&&24000\\$Income from Discontinued operations&&56000\\&&\\$Net Income&&416500\\$Outstanding Shares &20,000&\\EPS&&20.825\\\end{array}\right]

Explanation:

The ommited depreciation expense and prior years change will not impact the current income statemnt these wil go directly against retained earnings as we will in vilation of the accounting principle of mathcing the expenses at the time they occur.

First, we solve for gross profit

Then, for other revnues and expense and the income from continued operations

The discounted operations are listed net of taxes

Then, we solve for the net incoem and EPS which si the quotient between the net income and the earnings per share.

7 0
3 years ago
Combined Communications is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend b
LenaWriter [7]

Answer:

Combined Communications

The current value of one share of this stock if the required rate of return is 15.5 percent is:

= $46.00.

Explanation:

a) Data and Calculations:

Annual dividend = $0.20

Expected growth rate for the next 4 years - 15%

Expected growth rate after 4 years = 11.5% (15% - 3.5%)

Required rate of return = 15.5%

Current Price of the share = Annual Dividend * (1 + Dividend Growth Rate)/ (Required rate of return - Dividend Growth Rate)

= ($0.20 * 1 + 0.15)/ (0.155 - 0.15)

= $0.23/0.005

= $46

Future Price after 4 years = ($0.23 * 1 + 0.115)/(0.155 - 0.115)

= $0.25645/0.04

= $6.41

5 0
3 years ago
On January 2, The Public Legal Clinic issued Check 2108 for $370 to establish a petty cash fund. Indicate how this transaction w
denis23 [38]

To create the petty cash fund, make the following journal entry: debit Petty cash fund account ($430), credit cash account ($430).

<h3>What is petty cash fund?</h3>

A petty cash fund's main objective is to give business units enough money to pay for small expenses. The purpose is to make it easier for staff workers and visitors to get reimbursed for little expenses like taxi rides, postage, office supplies, and other things that often don't cost more than $25.00.

The data can also come from of the petty cash fund. Add up all of the expenses that are mentioned on each petty cash vouchers in the petty cash fund. This sum should be deducted from the calculated cash withdrawal amount. The outcome ought to be 0. There is an excess of cash in the fund if there is a residual balance.

To know more about petty cash fund, visit:

brainly.com/question/29671797

#SPJ1

6 0
2 years ago
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