BUSINESS COLLEGE

Brady is hired in 2018 to be the accountant for Anderson Manufacturing, a private company. At the end of 2018, the balance of Accounts Receivable is $23,000. In the past, Anderson has used only the direct write-off method to account for bad debts. Based on a detailed analysis of amounts owed, Brady believes the best estimate of future bad debts is $7,800. 1. If Anderson continues to use the direct write-off method to account for uncollectible accounts, what adjustment, if any, would Brady record at the end of 2018?

Answers

Answer 1
Answer:

Answer:

No journal entry is required

Explanation:

In the case of Direct write-off method, for recording the estimating future debts, no journal entry is required as in this method only bad debt expense is recorded which is shown  below:

Bad debt expense A/c Dr XXXXX

              To Account receivable A/c XXXXX

(Being the bad debt expense is recorded)

So, no journal entry is required for estimated amount or Allowance for doubtful Accounts

Related Questions

The following information was available for Paul Company at December 31, 2020: beginning inventory $90,000; ending inventory $70,000; cost of goods sold $968,000; and sales $1,360,000. Paul’s inventory turnover in 2020 wasa21.5 days.b.26.4 days.c.30.2 days.d.33.8 days.
Suppose a hypothetical economy is currently in a situation of deficient aggregate demand of $64 billion. Four economists agree that expansionary fiscal policy can increase total spending and move the economy out of recession, but they are debating which type of expansionary policy should be used. Economist A believes that the government spending multiplier is 8 and the tax multiplier is 4. Economist B believes that the government spending multiplier is 4 and the tax multiplier is 2. Economist B believes that the government spending multiplier is 4 and the tax multiplier is 8.Compute the amount the government would have to increase spending to close the output gap according to each economist's belief. Then, for each scenario, compute the size of the tax cut that would achieve this same effect.
Suppose that Spain and Germany both produce jeans and shoes. Spain's opportunity cost of producing a pair of shoes is 3 pairs of jeans while Germany's opportunity cost of producing a pair of shoes is 11 pairs of jeans.By comparing the opportunity cost of producing shoes in the two countries, you can tell that ------- has a comparative advantage in the production of shoes and ------ has a comparative advantage in the production of jeans.Suppose that Spain and Germany consider trading shoes and jeans with each other. Spain can gain from specialization and trade as long as it receives more than ------ of jeans for each pair of shoes it exports to Germany. Similarly, Germany can gain from trade as long as it receives more than--------- of shoes for each pair of jeans it exports to Spain.Based on your answer to the last question, which of the following prices of trade (that is, price of shoes in terms of jeans) would allow both Germany and Spain to gain from trade?4 pairs of jeans per pair of shoes, 1 pair of jeans per pair of shoes, 6 pairs of jeans per pair of shoes, 2 pairs of jeans per pair of shoes
Rocky Mountain Bikes' Colorado warehouse has 50 Pack Rat Deluxe Bike Baskets in stock at a moving average price of $25.13 each. They purchase 300 from Rat-a-tat-tat Bike Products at $25.54 each and transfer 100 from their Texas warehouse where the moving average price is $25.25 each. Assuming all of the baskets mentioned above have been received in Colorado and there have been no sales from Colorado, what is the current moving average price and total inventory valuation for Pack Rat Deluxe Bike Baskets in the Colorado warehouse.
Which of these is NOT one of the documents that a project manager can refer back to in order to make sure that all planned work has, in fact, been completed

Perfect Clean, Inc. provides housekeeping services. The following financial data have been provided.Service Revenue

$80,000

Cleaning Supplies Used

22,000

Wages Expense

19,350

Office Rent Expense

5,150

Depreciation Expense—Machinery

550

Calculate the contribution margin and the contribution margin ratio. (Round your contribution margin to the nearest dollar, and your contribution margin ratio to two decimal places.)

A) $38,650; 48.31% B) $74,850; 93.56%

C) $60,650; 75.81% D) $32,950; 41.19%

Answers

Answer:

A) $38,650; 48.31%

Explanation:

The computation of the contribution margin and the contribution margin ratio is shown below:

Contribution margin = Service Revenue - Cleaning Supplies Used - wages expense

= $80,000 - $22,000 - $19,350

= $38,650

The variable cost is Cleaning Supplies Used + wages expense

And, the contribution margin ratio equals to

= (Contribution margin ÷ sales) × 100

= ($38,650 ÷ $80,000)  × 100

= 48.31%

If a war destroys a large portion of a country's capital stock but the saving rate is unchanged, the Solow model predicts output will grow and that the new steady state will approach: A. a higher output level than before. B. the same output level as before. C. a lower output level than before. D. the Golden Rule output level.

Answers

Answer:

B. The same output level as before.

Explanation:

If there is a war broke out in a country and because of the war a large potion of the country's capital stock is destroyed but the thing that is unchanged is saving rate.

So according to the solow model the output will grow and the steady state that is new will be the same level of output as before.

VLC Corporation sold merchandise with a cost of $200 on account for $300 to PRT Corporation; credit terms were 2 / 10, n / 30. VLC paid the outgoing freight charge of $10. PRT paid the invoice within the discount period.The entries in VLC's accounting information system to record all the preceding events will include all of the following except: A. A debit to cost of goods sold
B. A debit to delivery expense
C. A credit togross profit
D. A credit to inventory

Answers

Answer:

  • The entries in VLC's accounting information system to record all the preceding events will include all of the following except:

C. A credit togross profit

Explanation:

An entry to Gross Profit does not exist because the gross profit it's the result of the total sales minus the Cost of Goods, so the Gross Profit it's a result and not a journal entry.

The other entries are used as follows:

A. A debit to cost of goods sold

D. A credit to inventory

B. A debit to delivery expense

A credit to Cash

2. Inputs and outputs Yvette's Performance Pizza is a small restaurant in Detroit that sells gluten-free pizzas. Yvette's very tiny kitchen has barely enough room for the four ovens in which her workers bake the pizzas. Yvette signed a lease obligating her to pay the rent for the four ovens for the next year. Because of this, and because Yvette's kitchen cannot fit more than four ovens, Yvette cannot change the number of ovens she uses in her production of pizzas in the short run. However, Yvette's decision regarding how many workers to use can vary from week to week because her workers tend to be students. Each Monday, Yvette lets them know how many workers she needs for each day of the week. In the short run, these workers arevariable inputs, and the ovens arefixed inputs.

Answers

Answer:

In the short run, these workers are variable inputs, and the ovens arefixed inputs. TRUE

Explanation:

The statement is true. The worker are defined on a weekly basis at will by Yvette hence, short-term thus variable input.

In the other hand; the oven were leased for the entire year thus, unchangable in the short run. Yvette's decition about the number of oven in her kitchen is a long-term decition as currently are fixed.

Which of the following you should use if you expect the probability for an increase in pound value is greatee than that for decrease

Answers

what are the options?

The vice president of marketing tells a marketing manager to prepare a presentation by the end of the week. The vice president is most likely exercising which of the following? staff authority line authority functional authority procedural authority

Answers

Answer:

Line Authority

Explanation:

Line authority refers to the power or authority assigned to individuals of supervisory position so as to direct and initiate employees to action in a desired manner, with the purpose of accomplishment of organizational goals and objectives.

For example, production manager may exercise line authority and supervise and direct production activities and subordinates.

In the given case, the vice president(VP) of a department i.e marketing tells marketing manager to prepare a presentation by the end of the week. Here, the VP is exercising his line authority, thereby supervising and directing the subordinates towards an action, carried out in organizational interest.

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