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
love history [14]
3 years ago
10

a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 4.5% of total accounts receivable to es

timate uncollectibles, instead of the aging of receivables method. b. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $12,000 credit. c. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $1,000 debit.
Business
1 answer:
solniwko [45]3 years ago
7 0

Based on the information give the estimated balance of the allowance for doubtful accounts is $25,650.

a. Estimated allowance for doubtful accounts

Estimated allowance for doubtful accounts =$570,000×4.5%

Estimated allowance for doubtful accounts =$25,650

b. Adjusting journal entry

Dec 31

Debit Bad debt expense  $13,650

($25,650-$12,000)  

Credit Allowance for doubtful accounts $13,650

(To record bad debts expense)

 

c. Adjusting journal entry

Dec 31

Debit Bad debt expense $26,650

($25,650+$1,000)  

Credit Allowance for doubtful accounts $26,650

(To record bad debts expense )

Learn more here:<em>brainly.com/question/15394488</em>

You might be interested in
Lily operates a gift shop and has a lot of inventory to manage. She counts inventory once every 4 weeks. Preparing and placing o
soldi70 [24.7K]

Answer:

12 weeks

Explanation:

The computation of the needs period is shown below":

= Number of weeks inventory counts once + number of order cycles takes + number of the week taken for arrive

= 4 weeks + 2 weeks + 6 weeks

= 12 weeks

We simply added the total number of weeks that is mentioned in the question so that the needs period could be computed

4 0
3 years ago
Since the great recession of 2008, the phrase "the new normal" has become increasingly common. this phrase makes reference to
BigorU [14]

The term new normal refers to a wide variety of context wherein something that was considered abnormal before has found its commonplace or sort of became a norm. It is referenced from the financial crisis during 2007-2008 and the global recession from 2008-2012.

3 0
3 years ago
Inflation does not affect both local and international business true or false
ziro4ka [17]

Answer:

true

Explanation:

inflation effects every aspect of the economy

8 0
2 years ago
Read 2 more answers
Suppose that a monopoly firm finds that its MR is $56 for the first unit sold each day, $55 for the second unit sold each day, $
OlgaM077 [116]

Answer:

Explanation:

the file attached shows the solution to the three questions asked i hope it helps. thank you

Download docx
6 0
3 years ago
Which method describes the inventory process in which the first items to be
spin [16.1K]

Answer:

Last in, Fast out (LIFO)

Explanation:

The Last in, Fast out (LIFO) method is an accounting method used to attach value to inventory.  Under the LIFO formula, the assumption is that the last item to be purchased will be sold first. The costs of the final goods to be produced or purchased will be used to expense the first batch of products to be sold.

LIFO is the contrast of FIFO, which stands for first in first out.  LIFO, as an inventory accounting technique, is rarely used outside the US. The approach is suitable for large businesses with huge inventories such as car dealers and retailers.

7 0
3 years ago
Read 2 more answers
Other questions:
  • Gomez runs a small pottery firm. He hires one helper at $14,500 per year, pays annual rent of $7,500 for his shop, and spends $1
    15·1 answer
  • Bart is a lawyer and an employee of Alway, Inc. Bart is representing Alway in its purchase of Steel Co. Bart learns from Alway's
    14·1 answer
  • The country of Norway has offers free college to students and even some universities offer free tuition to international student
    9·1 answer
  • ________ is a competitive strategy for creating brand loyalty by developing new and unique products and services that are not ea
    13·1 answer
  • The commercial banking system has excess reserves of $200,000. Then new loans of $800,000 are subsequently made, and the system
    15·1 answer
  • roarie brothers farm a seed company specializing in seed corn. at their weekly meeting they tried to calculate the portion of th
    5·2 answers
  • _ is the actual amount each common stockholder would expect to receive if a​ firm's assets are sold for their market​ value, cre
    12·1 answer
  • Recently us dairies struggling to increase milk sale tried to change the way adults thought about chocolate milk the dairies wan
    6·1 answer
  • carmelita Inc., has the following information available: Costs from Beginning Inventory Costs from Current Period Direct materia
    6·1 answer
  • some countries' governments do not put any limits on the purchase of foreign currency for residents and nonresidents. these coun
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!