Trowel Corp. has outstanding accounts receivable totaling $13,000,000 as of December 31 and sales on credit during the year of $48,000,000. There is also a credit balance of $24,000 in the allowance for doubtful accounts. If the company estimates that 6% of its outstanding receivables will be uncollectible, what will be the amount of bad debt expense recognized for the year

Answers

Answer 1
Answer:

Answer:

$756,000

Explanation:

Allowance for Bad Debts opening        ($24,000)

Allowance for Bad Debts Closing         $780,000

(13,000,000)*6%

Allowance Bad  Debt Expense for the year  $756,000


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Lyme Home has 5,000 bonds outstanding with a face value of $1,000 each and a coupon rate of 7.65 percent. Interest is paid semiannually. What is the amount of the annual tax shield on debt if the tax rate is 23 percent
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Suppose the economy only produces three goods: bread, laptops, and movies. Calculate the CPI of 2008, using 2004 as the base year.
Vaughn Manufacturing has two divisions; Sporting Goods and Sports Gear. The sales mix is 75% for Sporting Goods and 25% for Sports Gear. Vaughn incurs $6890000 in fixed costs. The contribution margin ratio for Sporting Goods is 30%, while for Sports Gear it is 50%. The weighted-average contribution margin ratio is 70%. 35%. 40%. 45%.
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Which of the following probably occurred as the U.S. economy experienced increasing real GDP in 1954? Check all that apply.Car sales declined.

Total real income increased.

The unemployment rate declined.

Corporate profits increased.

Answers

Answer:

The answer are: total real income increased, the unemployment rate declined; Corporate profits increased.

Explanation:

As real GDP increases, people/entities in the economy enjoy actual increase in their income ( income adjusted for inflation effect), thus they will tend to spend more, making "car sales declined" a wrong answer whil "total real income increased" the right one.

Higher spending also means demand for goods and services are higher helping to boost the corporate's profit up. Once the profit is higher, corporate will have plan to expand their business leading to a higher demand in labor which in turn reduce the unemployment rate.

Answer:

B

Explanation:

Nancy is considering whether her toy manufacturing business should develop its own brand. Which is a company reward Nancy can expect from branding?

Answers

Answer: a. Brands enhance loyalty.

Explanation:

Brands enhance loyalty because people are more likely to identify with a symbol than with something that has a general identity. When a company has a brand therefore, it will enhance the loyalty of its consumers as they look to identify with that brand.

Take Adidas for instance, the three stripes logo is so iconic that people can sometimes have entire wardrobes of Adidas apparel to show those three stripes off and show that they identify with it. This is the benefit that Nancy stands to gain with branding.

The two most likely benefits realized from utilizing enterprise systems are improvements in ________. availability of information and increased interaction throughout the organization reduced inventory and reduced operating expenses improved compliance with standards and improved supplier integration improved customer interaction and improved supplier integration reduced lead times for manufacturing and improved customer interaction

Answers

Answer: availability of information and increased interaction throughout the organization

Explanation: An enterprise systems is described as an integrated suite of business applications for virtually every  department, process, and industry, that allows companies and organizations to integrate information across  operations on a company-wide basis by the use of one large database and as a result, there is an upward increase in the availability of information which leads to increased interaction across departments, processes, and industries throughout the organization.

Kingbird Resort opened for business on June 1 with eight air-conditioned units. Its trial balance on August 31 is as follows. KingBird Resort Trial Balance August 31, 2020
Debit Credit
Cash $25,900
Prepaid Insurance 10,800
Supplies 8,900
Land 22,000
Buildings 122,000
Equipment 18,000
Accounts Payable $10,800
Unearned Rent Revenue 10,900
Mortgage Payable 62,000
Common Stock 99,300
Retained Earnings 9,000
Dividends 5,000
Rent Revenue 78,200
Salaries and Wages Expense 44,800
Utilities Expenses 9,200
Maintenance and Repairs Expense 3,600
$270,200 $270,200
Other data:
1. The balance in prepaid insurance is a one-year premium paid on June 1, 2020.
2. An inventory count on August 31 shows $443 of supplies on hand.
3. Annual depreciation rates are (a) buildings (4%) (b) equipment (10%). Salvage value is estimated to be 10% of cost.
4. Unearned Rent Revenue of $3,472 was earned prior to August 31.
5. Salaries of $392 were unpaid at August 31.
6. Rentals of $873 were due from tenants at August 31.
7. The mortgage interest rate is 8% per year.
A. Journalize the adjusting entries on August 31 for the 3-month period June 1–August 31.
No. Date Account Titles and Explanation Debit Credit
1. Aug. 31
2. Aug. 31
3a. Aug. 31
3b. Aug. 31
4. Aug. 31
5. Aug. 31
6. Aug. 31
7. Aug. 31
B. Prepare an adjusted trial balance on August 31.

Answers

Answer:

A. Journalize the adjusting entries on August 31 for the 3-month period June 1–August 31.

1. The balance in prepaid insurance is a one-year premium paid on June 1, 2020.

prepaid insurance expense per month = $10,800 / 12 = $900 x 3 months = $2,700

Dr Insurance expense 2,700

    Cr Prepaid insurance 2,700

2. An inventory count on August 31 shows $443 of supplies on hand.

supplies expense = $8,900 - $443 = $8,457

Dr Supplies expense 8,457

    Cr Supplies 8,457

3. Annual depreciation rates are (a) buildings (4%) (b) equipment (10%). Salvage value is estimated to be 10% of cost.

depreciation expense per month:

buildings = ($122,000 x 90%) x 4% x 1/12 = $366 x 3 = $1,098

equipment = ($18,000 x 90%) x 10% x 1/12 = $135 x 3 = $405

Dr Depreciation expense 1,503

    Cr Accumulated depreciation building 1,098

    Cr Accumulated depreciation equipment 405

4. Unearned Rent Revenue of $3,472 was earned prior to August 31.

Dr Unearned revenue 3,472

    Cr Rent revenue 3,472

5. Salaries of $392 were unpaid at August 31.

Dr Wages expense 392

    Cr Cash 392

6. Rentals of $873 were due from tenants at August 31.

Dr Accounts receivable 873

    Cr Rent revenue 873

7. The mortgage interest rate is 8% per year.

interest expense per month = $62,000 x 8% x 1/12 = $413.33 x 3 = $1,240

Dr Interest expense 1,240

    Cr Interest payable 1,240

B. Prepare an adjusted trial balance on August 31.

first we must calculate the quarter's profit:

Rent Revenue $82,545

Salaries and Wages Expense ($45,192)

Utilities Expenses ($9,200)

Maintenance and Repairs Expense ($3,600)

Insurance expense ($2,700)

Supplies expense ($8,457)

Depreciation expense ($1,503)

Interest expense ($1,240)

net income = $10,653

retained earnings = $9,000 -  $5,000 + $10,653 = $14,653

           Kingbird Resort

            Balance Sheet

For the Year Ended August 31, 202x

Assets:

Cash $25,508  

Accounts receivable $873

Prepaid Insurance $8,100

Supplies $443

Land $22,000

Buildings $120,902

Equipment $17,595

Total assets: $195,421

Liabilities and Stockholders' Equity:

Accounts Payable $10,800

Unearned Rent Revenue $7,428

Interest payable $1,240

Mortgage Payable $62,000

Common Stock $99,300

Retained Earnings $14,653

Total liabilities and stockholders' equity: $195,421

Compared to a perfectly competitive firm, a monopolist____________.A. will, according to Schumpeter, invest fewer resources in research and development.
B. is less likely to face government regulation.
C. is less likely to advertise.
D. usually produces an inefficiently small level of output.

Answers

Answer:

D. usually produces an inefficiently small level of output.

Explanation:

A perfect competition is characterised by many buyers and sellers of homogenous goods and services. Market prices is usually set by market forces. There is no need for advertising because all firms produce homogenous products. There is little or no need for government regulation because goods and services are efficiently distributed.

A monopoly is characterised by one firm in the industry. The firm sets the market price. The government regulates the activities of the activities of a monopoly to reduce inefficiency that usually occur. Either quantity produced or price are usually regulated by the government to reduce inefficiency and ensure fair distribution of goods and services.

Monopoly firms usually advertise and undertake more research activities when compared to a pure competition.

I hope my answer helps you

Toshlin issues financial statements on June 30. If payroll was $30,000 through June 30th and wages were to be paid on July 5. What is the correct journal entry on June 30?Assume FIT = 15%, FICA = 8%, SUTA = 6%, FUTA = 1%,

Answers

Answer:

a. No entry is required.

b.   Payroll        Dr.      $30,000  

           Wages Payable                      Cr.   $30,000

c.     Payroll          Dr.           $30,000    

             Federal Income Tax              Cr.       $4,500    

             FICA Taxes Payable               Cr.      $2,400    

             Wages Payable                       Cr.      $23,100      

d.     Payroll                          Dr.      $30,000  

              Federal Income Tax                       Cr.         $4,500  

              FICA Taxes Payable                       Cr.        $2,400    

              SUTA                                               Cr.        $1,800    

              FUTA                                               Cr.        $300        

              Wages Payable                               Cr.        $21,000

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