Business

24 November, 17:56

Smart Art is a new establishment. During the first year, there were credit sales of $40,000 and collections of credit sales of $36,000. One account for $650 was written off. The company decided to use the aging method to account for bad debts expense. It has calculated an amount of $200 as its estimate of uncollectible amounts at year-end. Prepare the journal entry required to record Bad debts expense at the end of the year.

+1

Know the Answer?

Not Sure About the Answer?

Find an answer to your question 👍 “Smart Art is a new establishment. During the first year, there were credit sales of $40,000 and collections of credit sales of $36,000. One ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.

Search for Other Answers

You Might be Interested in

You have decided to renovate your restaurant. You estimate that renovations will result in an extra $125,000 in sales per year and save $25,000 in utilities.

A U. S. corporation has purchased currency call options to hedge a 70,000 pound payable. The premium is $.02 and the exercise price of the option is $.50. If the spot rate at the time of maturity is $.

9. Which, if either, of the following statements is or are false? I. Tax exempt income received by a partnership, for example, municipal bond interest, does not increase a partner's basis in his/her partnership interest because the income is not

When a tourist goes to a bank in a foreign country to convert money into the local currency, the exchange rate used is the forward rate?

In a perfectly competitive market, the long-run market supply curve tends to be horizontal or nearly so. What is another way to state this fact? (a) Market supply is much more elastic in the long run than the short run.

New Questions in Business

Harrison Recyclers Company uses the indirect method to prepare its statement of cash flows. Refer to the following information for 2017: 1. Retained Earnings, beginning balance, $142,000 2. Retained Earnings, ending balance, $122.000 3.

Assume that total costs assigned to the setup activity cost pool in March are $120,000 and 100 setups were completed in March. Further, assume that during March machines were setup 20 times to make product X5.

The accounting cycle starts with a. closing out the periodic accounts. b. recording the transaction based on the information in a source document. c. preparing the financial statements. d. preparing the adjusting entries.

Ratemakers at ABC Insurance Company calculated the pure premium to be $280 for a risk they were considering insuring. What is the gross rate for this risk, assuming a 30 percent expense ratioA) $364 B) $400 C) $430 D) $520

When plant assets are purchased as a group in a single transaction for a lump-sum price, the cost of the purchase is allocated among the different types of assets acquired based on their relative market values. true or false