Tanning Company uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $300,000 and credit sales are $1,000,000. An aging of accounts receivable shows that 5% will be uncollectible. What adjusting entry will Tanning Company make if the Allowance for Doubtful Accounts has a credit balance of $2,000 before adjustment?
A) Bad Debts Expense 13,000Allowance for Doubtful Accounts 13,000
B) Bad Debts Expense 15,000Allowance for Doubtful Accounts 15,000
C) Bad Debts Expense 13,000Accounts Receivable 13,000
D) Bad Debts Expense 15,000Accounts Receivable 15,000
A
You might also like to view...
Appy Juices, a company that manufactures bottled water, diversified into soft drinks before any of its opponents could launch a diversified product. This would be an example of a(n) ________ attack
A) flank B) bypass C) guerrilla D) encirclement E) frontal
The first federation of industrial unions was known as the ____________________________.
Fill in the blank(s) with the appropriate word(s).
Refer to the data given in the table for Acme Widgets, Inc. Solve the transportation problem using Excel Solver. (Remember that in balanced transportation problems all constraints—except the non-negativity constraints of the decision variables—should be set as an equal to (=) sign in the Excel Solver dialogue.) At the optimum solution, the lowest non-zero transportation costs are from ______.
a. Montgomery to Visalia
b. Riverside to Visalia
c. Montgomery to Dayton
d. Bryan to Huntsville
Trigger phrases that you should avoid using with customers are "I can" and "we do."
Answer the following statement true (T) or false (F)