Colley Company uses the allowance method for bad debts and has the following information before the year end adjusting entry: Accounts Receivable $120,000 Allowance for Doubtful Accounts $500 Sales $800,000 18. If the company used the percentage of sale method and estimates bad debts to be 2% of sales what is the amount of bad debt expense: A) 2,400 B) 16,000 C) 16,500 D) 15,500 19. If the company uses the percentage of accounts receivable method and estimates 4% of accounts receivable will be uncollectible, what is the bad debt expense? A) 4,300 B) 4,800 C) 32,000 D) 5,300
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Colley Company uses the allowance method for bad debts and has the following information before the year end adjusting entry: Accounts ...” 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
Over the last century, U. S. real GDP per person grew at a rate of about ... a. 2 percent per year, so that it is now 2 times as high as it was a century ago. b. 4 percent per year, so that it is now 8 times as high as it was a century ago. c.
Answers (1)
On April 1, Alliance Company purchased $50,000 of Tetter Company's 12% bonds at 100 plus accrued interest of $2,000. On June 30, Alliance received its first semiannual interest.
Answers (2)
Enercio contributes $100,000 in exchange for a 40% interest in the calendar year ABC LLC, which is taxed as a partnership. In 2015, the LLC generates $80,000 of ordinary taxable income. Enercio withdrew $10,000 from the partnership during 2015.
Answers (2)
Sunset Oil is a large oil drilling company off the Gulf Coast. They want to expand their drilling area and are receiving a great deal of push back from the local community. It will now be on the ballot at the next election.
Answers (1)
A corporation issued 5,600 shares of $10 par value common stock in exchange for some land with a market value of $82,000. The entry to record this exchange is:
Answers (1)
New Questions in Business
European interest in the Middle East intensified after oil was discovered in the region. a. True b. False
Answers (1)
What type of marketing channel would Secure Insurance use if it offers its products exclusively through door-to-door salespersons?
Answers (1)
Travis is employed in a logistics company. How can he best avoid workplace hazards? A. by staying seated at his desk B. by avoiding hazardous work C. by wearing safety goggles D. by maintaining an uncluttered workplace E.
Answers (1)
The following information was taken from the financial statements of Hofburg Corp. for the year just ended: Accounts receivable, January 1 $ 21,600 Accounts receivable, December 31 30,400 Sales on account and cash sales 438,000 Uncollectible
Answers (1)
China has a collectivist culture. how do you believe that this will affect managers in a starbucks store?
Answers (1)