Answer:
The adjustment to record the bad debt expense for the period will require a debit $3,654
Explanation:
There are two way to estimate uncollectible accounts: the percentage of sales method and the accounts receivable aging method.
The company uses the accounts receivable aging method to estimate the uncollectible accounts and estimated uncollectible of $4,979
Before adjustment, Allowance for Doubtful Accounts has a $1,325 credit balance.
Bad debt expense for the period = $4,979 - $1,325 = $3,654
Answer:
1. Cost of construction incurred
= Construction in progress - Income
= 150,000 - 25,000
= $125,000
2. Cash collected
= Billings - Accounts receivable
= 143,000 - 35,000
= $108,000
3. Estimated cost to complete;
= (Cost of construction incurred in 2016 * Contract price/Construction in progress) - Cost of construction incurred in 2016
= (125,000 * 2,100,000/150,000) - 125,000
= $1,625,000
4. Estimated percentage of completion used in 2016
= Cost of construction incurred in 2016 / (Cost of construction incurred in 2016 + Estimated cost to complete at end of 2016)
= 125,000 / ( 125,000 + 1,625,000)
= 125,000 / 1,750,000
= 0.0714
= 7.14%
Answer:
Correct option is (d)
Explanation:
Purchase returns is a contra account which is related to purchases. Some part of purchases are returned due to many reasons such as receipt of defective goods or goods are not needed anymore. In such cases, a contra journal entry is passed in the books of both supplier and purchaser.
Following entry is passed in the books of the purchaser if goods were purchased on account:
Particulars Debit Credit
Accounts payable P2,000
Purchase returns and P2,000
allowances
(To record purchase returns)
The initial entry passed when purchases were made was"
Particulars Debit Credit
Purchases P2,000
Accounts payable P2,000
(To record purchases made
on account)
The above is reversed when purchases are returned.
So, the firm will debit accounts payable.
A text message . A text message is not formal , or professional .
Answer:
hear the decisions of othera
Explanation:
listen to the decisions of others and consider whether what they have said is right and no one will be trampled on
