Business, 22.09.2021 05:40 itsmichaelhere1

Clark Company uses the allowance method to account for bad debts. To estimate the amount of uncollectible accounts, Clark Company uses the percentage of sales method . A review of the end of the year accounting information finds the following: Net sales for the year, $555,000. This includes $61,000 of cash sales; Ending balance in Accounts Receivable, $77,000; Ending balance in Allowance for Uncollectible Accounts, $507 (debit balance). After discussions with company management, you determine that 4% of net credit sales is a reasonable estimate of uncollectible accounts. Required: Journalize the entry to record bad debts expense for the year ended December 31.

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 21:50

The next dividend payment by savitz, inc., will be $2.08 per share. the dividends are anticipated to maintain a growth rate of 6 percent forever. if the stock currently sells for $42 per share, what is the required return?

Answers: 2

Answer

Business, 21.06.2019 22:30

True or false: on january 1, year one, the epstein corporation buys a plot of land with a four-story office building. the company believes the building is worth $1.9 million and has an estimated life of twenty years (with no anticipated residual value). the straight-line method is used. the land has an assessed value of $100,000. because the seller was interested in a quick sale, epstein was able to buy this land and building for $1.7 million. depreciation expense to be recognized in year one is $80,750.

Answers: 3

Answer

Business, 22.06.2019 09:50

phillips, inc. had the following financial data for the year ended december 31, 2019. cash $ 41,000 cash equivalents 75,000 long term investments 59,000 total current liabilities 149,000 what is the cash ratio as of december 31, 2019, for phillips, inc.? (round your answer to two decimal places.)

Answers: 3

Answer

Business, 23.06.2019 07:50

Suppose that two countries, britain and the u.s. produce just one good - beef. suppose that the price of beef in the u.s. is $2.80 per pound, and in britain it is £3.70 per pound. according to ppp theory, what should the $/£ spot exchange rate be? suppose the price of beef is expected to rise to $3.10 in the u.s. and to £4.65 in britain. what should be the one year forward $/£ exchange rate?

Answers: 1

Answer

You know the right answer?

Clark Company uses the allowance method to account for bad debts. To estimate the amount of uncollec...

Questions