Business, 20.02.2020 17:28 kaylee0424
Raintree Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for bad debt expense is recorded only at December 31, the company's fiscal year-end. The 2015 balance sheet disclosed the following:
Current Assets: Receivables $512,000; net of allowance for uncollectible accounts of $46,000
During 2016, credit sales were $1,830,000, cash collections from customers $1,910,000, and $55,000 in accounts receivable were written off. In addition, $4,600 was collected from a customer whose account was written off in 2015. An aging of accounts receivable at December 31, 2016, reveals the following:
Age Group:
0-60 days, 60% receivables in group, 3% uncollectible
61-90 days, 10% receivables in group, 5% uncollectible
91-120 days, 20% receivables in group, 35% uncollectible
Over 120 days, 10% receivables in group, 45% uncollectible
Prepare the year-end adjusting entry for bad debts according to each of the following situations:
(a) Bad debt expense is estimated to be 2% of credit sales for the year.
(b) Bad debt expense is estimated by computing net realizable value of the receivables. The allowance for uncollectible accounts is estimated to be 10% of the year-end balance in accounts receivable.
(c) Bad debt expense is estimated by computing net realized value of the receivables. The allowance for uncollectible accounts is determined by an aging of accounts receivable.
Answers: 1
Business, 22.06.2019 10:10
Rats that received electric shocks were unlikely to develop ulcers if the
Answers: 1
Business, 22.06.2019 11:30
Which of the following statements about cash basis accounting is true? a. it is more complicated than accrual basis accounting. b. the irs allows all types of corporations to use it. c. it follows gaap standards. d. it ensures the company always knows how much cash flow it has.
Answers: 2
Business, 22.06.2019 11:40
Jamie is saving for a trip to europe. she has an existing savings account that earns 3 percent annual interest and has a current balance of $4,200. jamie doesn’t want to use her current savings for vacation, so she decides to borrow the $1,600 she needs for travel expenses. she will repay the loan in exactly one year. the annual interest rate is 6 percent. a. if jamie were to withdraw the $1,600 from her savings account to finance the trip, how much interest would she forgo? .b. if jamie borrows the $1,600 how much will she pay in interest? c. how much does the trip cost her if she borrows rather than dip into her savings?
Answers: 1
Business, 22.06.2019 17:30
Aproject currently generates sales of $14 million, variable costs equal 50% of sales, and fixed costs are $2.8 million. the firm’s tax rate is 40%. assume all sales and expenses are cash items. (a). what are the effects on cash flow, if sales increase from $14 million to $15.4 million? (input the amount as positive value. enter your answer in dollars not in (b) what are the effects on cash flow, if variable costs increase to 60% of sales? (input the amount as positive value. enter your answers in dollars not in millions). cash flow (increase or decrease) by $
Answers: 2
Raintree Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for...
History, 15.09.2020 22:01
Arts, 15.09.2020 22:01
Mathematics, 15.09.2020 22:01
Computers and Technology, 15.09.2020 22:01
Mathematics, 15.09.2020 22:01
Mathematics, 15.09.2020 22:01
Mathematics, 15.09.2020 22:01
Mathematics, 15.09.2020 22:01
Mathematics, 15.09.2020 22:01
Mathematics, 15.09.2020 22:01
Mathematics, 15.09.2020 22:01
Mathematics, 15.09.2020 22:01
Mathematics, 15.09.2020 22:01
Social Studies, 15.09.2020 22:01
Mathematics, 15.09.2020 22:01
English, 15.09.2020 22:01
Mathematics, 15.09.2020 22:01
Mathematics, 15.09.2020 22:01
Mathematics, 15.09.2020 22:01
Mathematics, 15.09.2020 22:01