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
gladu [14]
3 years ago
5

Sheridan Company uses the percentage-of-receivables method for recording bad debt expense. The Accounts Receivable balance is $2

50000 and credit sales are $1000000. Management estimates that 5% of accounts receivable will be uncollectible. What adjusting entry will Sheridan Company make if the Allowance for Doubtful Accounts has a credit balance of $2500 before adjustment
Business
1 answer:
Lady_Fox [76]3 years ago
5 0

The adjusting entry that Sheridan Company will make if the Allowance for Doubtful Accounts has a credit balance of $2500 before adjustment is:

Debit Bad Debt Expense $10,000

Credit Allowance for Doubtful Accounts $10,000

Sheridan Company Adjusting Journal entry

Debit Bad Debt Expense $10,000

Credit Allowance for Doubtful Accounts $10,000

[($250,000 × 0.05) - $2,500]

[($12,500- $2,500)=$10,000]

(To record Allowance for Doubtful Accounts)

Learn more here:

brainly.com/question/15683850

You might be interested in
Grain's alternative corporation has a predicted operating income of 80,000. The managerial accountant reported that total variab
dexar [7]

Answer:

Number of units needed to reach the operating income of 80,000: 5,200 units

Explanation:

Please find the below for detailed calculations and explanations:

To achieve $80,000 of operating income, denote the number of units needs to be sold is x.

For each unit sold, the incremental in profit will be 20.

Thus, to achieve the profit of 80,000, the amount of x units sold will generate the profit before fixed cost that covers 24,000 fixed cost and 80,000 targeted profit. So, we have:

80,000 + 24,000 = 20x <=> x = 5,200 units.

* For quick calculation purpose, we may apply the formular: Units need to be sold to achieve targeted income = (Fixed cost + targeted income)/ Contribution margin per unit in monetary form.

8 0
3 years ago
1. What is the incremental manufacturing cost incurred if the company increases production from 29,750 to 29,751 units
Alex

Answer:

$17.90  

Explanation:

The below is missing from the question:

Kubin Company’s relevant range of production is 28,000 to 31,500 units. When it produces and sells 29,750 units, its average costs per unit are as follows:

Amount per Unit

Direct materials  $8.80

Direct labor $5.80

Variable manufacturing overhead $3.30

Fixed manufacturing overhead $ 6.80

Fixed selling expense $ 5.30

Fixed administrative expense $ 4.30

Sales commissions $ 2.80

Variable administrative expense $ 2.30

In order to determine the incremental manufacturing cost by increasing the volume of production from  29,750 to 29,751 units, we simply compute the extra variable cost of producing one extra unit since 29,751 units are still within the relevant range of output, no extra fixed costs would be incurred.

extra cost per unit=direct materials+direct labor+Variable manufacturing overhead

Sales commissions and Variable administrative expense are not included because they are not manufacturing costs

extra cost per unit= $8.80 +$5.80 +$3.30 =$17.90  

8 0
3 years ago
The___ rate is the rate of change in prices calculated on a monthly or yearly basis
otez555 [7]

Answer: A.) INFLATION

Explanation: prices of goods and services are usually prone to change and fluctuation from time to time. The change usually associated with inflation is an increase in price of commodities within a certain period of time. In other to adequately measure inflation, the change in prices of certain economic commodities are compared over an equal time interval either monthly, quarterly or yearly basis as the case may be.

It is calculated as the ratio of the difference between the price of goods between the base and current period to the price at the base period expressed as a percentage. Fall or decline in prices of goods and services is usually called deflation

5 0
3 years ago
Cale Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of
katrin [286]

Solution :

1.                                <u>Calculation of total revenue</u>

Total revenue = cost of goods sold + Markup 7% = Revenue

University       = 38000 + 2660 = 40660

Memorial        = 38000 + 2660 = 40660

Therefore, markup = cost of goods sold x market up

                              = 38000 x 7%

                              = 2660

2.                                <u>Calculations of Activity rates</u>

Activity rate     = activity cost pool / total activity = activity rate

Customer deliveries  = 420000 / 5000 = 84

Manual order processing = 624000 / 8000 = 78

Ele order processing = 170000 / 10000 = 17

Line time picking = 675000 / 450000 = 1.5

3.                               <u> Calculations of Activity costs</u>

<u>Activity cost for University</u>

Activity cost pool =  Activity  x  Activity rate

Customer deliveries  = 16 x 84 = 1344

Manual order processing = 0 x 78 = 0

Ele order processing = 18 x 17 = 306

Line time picking = 190 x 1.5 = 285

Total activity cost = 1935

<u>Activity cost for Memorial</u>

Activity cost pool =  Activity  x  Activity rate

Customer deliveries  = 28 x 84 = 2352

Manual order processing = 49 x 78 = 3822

Ele order processing = 0 x 17 = 0

Line time picking = 210 x 1.5 = 315

Total activity cost = 6489

4.      <u>Calculation of Customer margin</u>

                                                 University        Memorial

Sales revenue                           40660              40660

Less : Cost of goods sold        38000               38000

Gross Margin                            2660                   2660

Less : Activity cost                    1935                    6489

Customer Margin                      725                    -3829

7 0
2 years ago
The common stock of Energy Saver pays an annual dividend that is expected to increase by 4 percent annually. The stock commands
Tanzania [10]

Answer:

D1 = 4.66

Explanation:

The constant growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,

P0 = D1 / (r - g)

Where,

  • D1 is dividend expected for the next period
  • g is the growth rate
  • r is the required rate of return  

Plugging in the values for P0, g and r we can calculate the D1 to be,

58.25 = D1  /  (0.12 - 0.04)

58.25 = D1 / 0.08

58.25 * 0.08 = D1

D1 = 4.66

8 0
3 years ago
Other questions:
  • During the month of September, the Texas Go-Kart Company had the following business activities: a. On September 1, paid rent on
    6·1 answer
  • This area offers the broadest possible range of job options:
    7·1 answer
  • Carrie works at a canned food production factory. The government wanted to give a boost to the salt industry, so it lined up num
    10·1 answer
  • Suppose that the quantity of labor demanded decreases by​ 80,000 at each wage level. What are the new free market equilibrium ho
    12·1 answer
  • Billboard advertising is most effective for __________ advertising.
    10·1 answer
  • Which one of the following groups of accounts only have debit balances
    7·1 answer
  • To determine the net cash provided (used) by operating activities, it is necessary to analyze Group of answer choices the curren
    10·1 answer
  • What entry is made to establish a petty cash book?
    5·2 answers
  • Kendrik was frustrated that his DVD player wouldn't play a DVD he purchased while on vacation in Great Britain. When he called t
    12·1 answer
  • Spotlight on India and Mexico Question Number 1) India’s rapidly expanding service sector of educated workers represents more th
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!