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anygoal [31]
3 years ago
12

The unadjusted trial balance at year-end for a company that uses the percent of receivables method to determine its bad debts ex

pense reports the following selected amounts: Accounts receivable $ 435,000 Debit Allowance for Doubtful Accounts 1,250 Credit Net Sales 2,100,000 Credit All sales are made on credit. Based on past experience, the company estimates 3.5% of ending account receivable 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:
kozerog [31]3 years ago
5 0

Answer:

Given that,

Accounts receivable = $435,000

Debit Allowance for Doubtful Accounts = 1,250

Credit Net Sales = 2,100,000

Ending account receivable to be uncollectible = 3.5%

Estimated bad debts:

= Accounts Receivable × 3.5% + Debit balance in Allowance for Doubtful Accounts

= (435,000 × 3.5%) + 1,250

= $16,475

Therefore, the journal entry is as follows:

Bad debts expense A/c        Dr.  $16,475

To Allowance for Doubtful Accounts         $16,475

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$29,908.26

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FV = P (1 + r) nm

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P = Present value  

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m = number of compounding

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Present value can be calculated using a financial calculator

Cash flow from year 0 to 3 = 6000

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To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

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3 0
2 years ago
At the Bourg Company, a primary ______ is to increase the monthly revenue by 10%. Bourg considers revenue targets a key part of
mr_godi [17]

Considering the subsequent description given in the question, At the Bourg Company, a primary <u>sales goal</u> is to increase the monthly revenue by 10%.

This is evident in the fact that Bourg considers revenue targets a vital part of the company strategy. Here, the revenue of a company is derived from <u>sales</u>.

Also, given that the targets at the Bourg Company are stated in clear, precise, and measurable terms, and they always specify a time frame for completion, this is an example of a <u>sales goal.</u>

<u>Sales goal</u> is a term used in business management to describe the defined goals for a firm's sales team.

Sales goals could be expressed as increasing revenue by 13% in a year or improving customer retention by 18%.

Hence, in this case, it is concluded that the correct answer is "<u>sales goals."</u>

Learn more here: brainly.com/question/23162020

6 0
2 years ago
Ellie Inc., a calendar year C corporation, wants to make a gift to a charity that is deductible on its year 1 Form 1120. The gif
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Answer:

On or before April 15, year 2.

Explanation:

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URGENT!!!
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so,nominally,................... (copied by :- @-Venkatesh Rao cheap tricks-)

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2 years ago
The video describes an instance in which Dominic discovered that a heart surgeon had just taken a new job at a large hospital wh
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Answer:

Prospecting

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Prospecting is the initial phase in the business procedure, which comprises of distinguishing potential clients, otherwise known as possibilities. The objective of prospecting is to build up a database of likely clients and  deliberately speak with them with expectations of changing over them from potential client to current client. Prospecting, done right, not just makes a pipeline of potential clients, it positions you as a confided in guide.

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