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FromTheMoon [43]
3 years ago
6

At December 31, Amy Jo's Appliances had account balances in Accounts Receivable of $302,000 and in Allowance for Uncollectible A

ccounts of $940 (credit) before any adjustments. An analysis of Amy Jo's December 31 accounts receivable suggests that the allowance for uncollectible accounts should be 6% of accounts receivable. Bad debt expense for the year should be:
Business
1 answer:
marin [14]3 years ago
7 0

Answer:

$5,230

Explanation:

Account receivable balance = $310,000

Credit balance in allowance for uncollectible accounts = $970

Given percentage = 2%

So by considering the above information, the bad debt expense is

= Account receivable balance × given percentage - credit balance in allowance for uncollectible accounts

= $310,000 × 2% - $970

= $6,200 - $970

= $5,230

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Information that is top secret vip your eyes only

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3 years ago
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Blue ridge bicycles uses a standard part in the manufacture of several of its bikes. the cost of producing 45 comma 000 parts is
7nadin3 [17]

Answer:

If Blue ridge decides to purchase the parts instead of manufacturing them, their total costs will increase by $21,300

Explanation:

currently Blue Ridge's costs are:

variable costs = $69,000

fixed costs = $69,000

total $138,000

total cost per unit = $138,000 / 45,000 units = $3.0667 per unit

if Blue Ridge decide to outsource the production of the parts:

variable costs = 45,000 x $4 = $180,000

decrease in fixed costs = $69,000 x -30% = -$20,700

total costs = $159,300

If Blue ridge decides to purchase the parts instead of manufacturing them, their total costs will increase by ⇒ $159,300 - $138,000 = $21,300

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4 years ago
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The income statement for the year 2018 of Fugazi Co. contains the following information: Revenues $70000 Expenses: Salaries and
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Answer:

Explanation:

incorrect answer

a credit balance of $7500

correct answer

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3 years ago
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what is the term for a group of project activities that are assigned to a single organizational unit?
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Product-service bundling is adding Value-added services to a firm's product offerings to create more value for the customer.
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2 years ago
To finance some manufacturing tools it needs for the next 3 years, waldrop corporation is considering a leasing arrangement. the
KATRIN_1 [288]
"The answer is $106".

After tax cost of debt               6%
Dep per year                          1600
Tax sav from dep                   640
cost of owning       0               1
interest                                  -480
tax saving                               192
maintence                                 -240
maintenece saving                     96
Depn tax saving                          640
loan repay
net cash cost                              208
PV cost of owning (6%)             -3474
cost of leasing
lease payment                           -2100
Tax savings from lease                840
net cash cost                           -1260
PV cost lease 6%                     -3368
PV cost own - Pv cost lease       106
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3 years ago
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