The general ledger account for Accounts Receivable shows a debit balance of $25,000 . Allowance for Uncollectible Accounts has a credit balance of $1,500 . Net sales for the year were $250,000 . In the past, 3 percent of sales have proved uncollectible, and an aging of accounts receivable resulted in an estimate of $10,000 of uncollectible accounts receivable. Using the percentage of net sales
method, the entry to record the Uncollectible Accounts Expense is:
a. Uncollectible Accounts Expense 6,000
Allowance for Uncollectible Accounts 6,000
b. Uncollectible Accounts Expense 7,500
Allowance for Uncollectible Accounts 7,500
c. Uncollectible Accounts Expense 9,000
Allowance for Uncollectible Accounts 9,000
d. Uncollectible Accounts Expense 10,000
Allowance for Uncollectible Accounts 10,000
B
You might also like to view...
The president and CFO of Spellman Transportation are having a disagreement about whether to use market value or book value weights in calculating the WACC. Spellman's balance sheet shows a total of noncallable $45 million long-term debt with a coupon rate of 7.00% and a yield to maturity of 6.00%. This debt currently has a market value of $50 million. The company has 10 million shares of common stock, and the book value of the common equity (common stock plus retained earnings) is $65 million. The current stock price is $22.50 per share; stockholders' required return, rs, is 14.00%; and the firm's tax rate is 25%. The CFO thinks the WACC should be based on market value weights, but the president thinks book weights are more appropriate. What is the difference between these two WACCs?
A. 1.42% B. 1.57% C. 1.75% D. 1.94% E. 2.16%
The Universal Declaration of Human Rights assures every person, as a member of the human society, specific economic, social, and cultural rights. All of the following rights listed in the declaration are most relevant to employment except the following:
a. The right to social security b. The right to economic prosperity c. The right to a standard of living adequate for health and well-being d. The right to rest and leisure
Pay secrecy is still prevalent in organizations despite its negative effect on motivation and employee trust.
Answer the following statement true (T) or false (F)
Employees don't include the value of any compensatory fringe benefits in gross income because the benefit doesn't consist of a direct cash payment.
Answer the following statement true (T) or false (F)