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
anzhelika [568]
2 years ago
13

A company's unadjusted trial balance shows a debit balance in the allowance for doubtful accounts. This means that a. The compan

y has written off more accounts receivable during the period than were accounted for in the opening balance of the allowance. b. The company must recognize bad debt expense at least as great as the unadjusted debit balance of the allowance. c. The company has written off too many accounts receivable and should reassess its write-off policy. d. Both a and b above are correct.
Business
1 answer:
ELEN [110]2 years ago
3 0

Answer:

d. Both a and b above are correct.

Explanation:

In the case when the company unadjusted trial balance reflect a debit balance of allowance for doubtful debts so this represent that the company would have more written off account receivable that would be shown in the beginning balance of the allowance. Also the company should record the bad debt expense as more as the debit balance of the non-adjusted allowance  

Hence, the last option is correct

You might be interested in
Select the examples of Buying and Merchandising workplaces. Check all that apply.
KiRa [710]

Answer:

2,3,4,5

Explanation:

...

3 0
3 years ago
Read 2 more answers
Lyle and Miranda agree that Lyle will fix the refrigeration unit in Miranda's Bagel Café in exchange for her payment of a debt t
-Dominant- [34]

Answer:

New Credit Corporation.

Explanation:

A contract can be defined as an agreement between two or more parties (group of people) which gives rise to a mutual legal obligation or enforceable by law.

Also, mutual assent is a legal term which represents an agreement by both parties to a contract. When two parties to a contract both have an understanding of the parameters, terms and conditions surrounding a contract, it ultimately implies that they are in agreement; this is generally referred to as mutual assent.

In this scenario, Lyle and Miranda agree that Lyle will fix the refrigeration unit in Miranda's Bagel Café in exchange for her payment of a debt that Lyle owes to New Credit Corporation. Under this contract, the intended beneficiary is New Credit Corporation as agreed upon by Lyle and Miranda.

An intended beneficiary can be defined as a third-party deemed to be the recipient of an action with respect to the execution of a contract.

4 0
3 years ago
Q 6.20: Switzer, Inc. has 8 computers which have been part of the inventory for over two years. Each computer cost $600 and orig
borishaifa [10]

Answer:

$400 .Since inventory is valued at cost or market value(current replacement cost) whichever is lower .

Therefore value of inventory : $400*8=$3200

Explanation:

8 0
3 years ago
Read 2 more answers
Facial Cosmetics provides plastic surgery primarily to hide the appearance of unwanted scars and other blemishes. During 2021, t
valentina_108 [34]

Answer: Please see explanation for answers

Explanation:

Age Group            Amount           Estimated Percent     Estimated  Amount

                              Receivable      Uncollectible                 Uncollectible

Not yet due             $ 32,000              4 %                          $1,280

0-30 days past due 10,200                 6 %                          $612  

31–60 days past due 7,200                 12 %                        $864

More than 60 days past due 2,600      30 %                      $780

Total                                  $ 52,000                                    $3536

Calculation

1) Estimated Amount Uncollectible = Amount Receivable x Estimated Percent      Uncollectible    =

4% x 32,000= $1,280

6% x 10,200=$612

12% x 7,200=$864

30% x2600=$780

Total = $3,536

The allowance for uncollectible accounts = $3,536

2) Journal to  Record the December 31, 2021, adjustment for a debit of $400

Estimated Amount Uncollectible =$3,536

Adjusted = $3536 + debit $400=$3,936

Date                   Account                  Debit             Credit

Dec 31, 2021,  Bad debts Expense    $3,936

Allowance for uncollectible accounts                    $3,936

3) Journal to  Record the write-off of $500

Date                   Account                              Debit             Credit

April 3, 2022,  Allowance for uncollectible

                             accounts                             $500

                         Accounts receivable                                     $500

4a)Journal to  reinstate  the account previously wrtten off  On July 17, 2022

Date                   Account                              Debit             Credit

July 17, 2022,   Accounts receivable             $100

Allowance for uncollectible  accounts                             $100

4b)Journal to record collection of cash  

Date                   Account                              Debit             Credit

July 17, 2022,   Cash                                    $100

     Accounts receivable                                                     $100

                                                                                                                   

5 0
3 years ago
Given all the details about bonds and stocks, which do you prefer to invest with your money in the future? Explain in your own w
nataly862011 [7]

Answer:

Bonds provides more opportunities and offers than stocks.

Explanation:

  • Bonds are a better option than stocks as bonds tend to give a good return. That is the bonds are less volatile and less risk markets they have a high interests rates and tends to offer saving rates at a bank and hae various advantages.
  • Bonds also perform well the stocks decline and hence they are better than stocks and should prefer to invest in the money in future.
3 0
2 years ago
Other questions:
  • For each item listed below, indicate the allocation terminology for the item. Use the following terms for your answer:
    13·1 answer
  • A small change in the rate of productivity growth will have a large impact on output in the short run but a small impact in the
    9·1 answer
  • 3 best basic economic questions
    15·1 answer
  • Keenan Industries has a bond outstanding with 15 years to maturity, an 8.25% nominal coupon, semiannual payments, and a $1,000 p
    14·1 answer
  • The main purpose of most tariffs and quotas is to
    7·1 answer
  • Type the correct answer in the box. Spell all words correctly.
    14·2 answers
  • Jim has a choice between two jobs. Job A would pay him $15 an hour with certainty, and the job B is commission based where he co
    6·1 answer
  • During 2021, its first year of operations, Ashbaugh Industries recorded sales of $21,000,000 and experienced returns of $1,400,0
    5·1 answer
  • Daniel and Melissa just bought a new house for $200,000. Each quarter, they now have to pay $4,000 in taxes. Which type of tax a
    7·2 answers
  • Answer the above Questions ​
    6·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!