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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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Identify which of the following statement(s) is (are) correct as to why accounting is important. (check all that apply.) manager
Dominik [7]

Answer:

The correct statements are A, B and C

Explanation:

Accounting plays a important role while running a business as it helps the company in keeping a track of expenditures as well as income, it ensures the statutory compliance.

Provide the owners, managers, investors and creditors reliable information so that could take the decisions.

It summarizes the information and help in conveying the information related to the firm activities.

It records as well as communicate the information regarding the business.

7 0
3 years ago
Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next nine years because t
Montano1993 [528]

Answer:

$106.02

Explanation:

Div₀ - Div₉ = 0

Div₁₀ = $10 and then will grow by 6% forever

we must first determine the terminal value for year 9 using the dividend growth model:

P₉ = Div₁₀ / (Re - g) = $10 / (10% - 6%) = $10 / 4% = $250

now we shall discount this to present day value:

P₀ = $250 / (1 + 10%)⁹ = $250 / 2.3579 = $106.02

3 0
3 years ago
The following information is available for Barnes Company for the fiscal year ended December 31: Beginning finished goods invent
weqwewe [10]

Answer:  $57,000

Explanation:

Given that,

Beginning finished goods inventory in units = 0

Units produced = 7,000

Units sold = 5,100

Sales = $663,000

Materials cost = $140,000

Variable conversion cost used = $70,000

Fixed manufacturing cost = $490,000

Indirect operating costs (fixed) = $102,000

Total Variable cost of units produced = Materials cost + Variable conversion cost used

                                                               = $140,000 + $70,000

                                                               = $210,000

Variable\ cost\ per\ unit = \frac{Total\ variable\ cost}{units\ produced}

                                               =\frac{210,000}{7,000}

                                               = $30

Units in ending inventory = Units produced - Units sold

                                          = 7,000 - 5,100

                                          = 1,900

Value of Variable costing ending inventory = Units in ending inventory × Variable cost per unit

                                                                        = 1,900 × $30

                                                                        = $57,000

5 0
3 years ago
You are at the checkout counter at the local supermarket, use your debit card to pay for your groceries, and select “credit” whe
vekshin1

Answer:

B.

Explanation:

The checking account is also known by other names such as current account, transaction account, etc. This account helps in immediate access by the owner of the account for transactions. This account is used for immediate transactions when the owner use a debit card, or withdraws cash.

<u>In the given case, the  money will be deducted from the checking account or current account when he use the debit card</u>.

Therefore the correct answer is option B.

6 0
3 years ago
Hey there,
gtnhenbr [62]
I am the age 17 and I am A)Single
3 0
3 years ago
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