[The following information applies to the questions displayed below.]On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $31,000 and $500, respectively. During Year 2, Kincaid reported $72,500 of credit sales, wrote off $550 of receivables as uncollectible, and collected cash from receivables amounting to $74,550. Kincaid estimates that it will be unable to collect one percent (1%) of credit sales.What is the amount of uncollectible accounts expense that will be reported on the Year 2 income statement?
A. $550
B. $725
C. $310
D. $745.50
Answer: B
You might also like to view...
A company asked one of their analysis team to analyze and create models that help decidewhether they should manufacture a particular product or outsource its production. The different components are given below:
Fixed Cost, FC = $25,000
Material Cost per Unit, MC = $2.15
Labor Cost per Unit, LC = $2.00
Outsourcing Cost per Unit, O = $4.50
Note that per-unit material and labor cost together make up the variable cost per unit.
- Using the spreadsheet model, construct a one-way data table with production volume as the column input and savings due to outsourcing as the output. Breakeven occurs when profit goes from a positive to a negative value, that is, breakeven is when total outsource cost = total cost, yielding savings due to outsourcing equal to zero. Vary production volume from 0 to 100,000 in increments of 10,000. In which interval of production volume does breakeven occur?
- Use Goal Seek to find the exact breakeven point. Assign Set cell: equal to the location of savings due to outsourcing, To value: = 0, and By changing cell: equal to the location of the production volume in your model.
Internet-only banks typically pay lower interest rates on savings than traditional banks
Indicate whether the statement is true or false
Which of the following management positions is responsible for getting the right information to other managers to enable them to make better decisions?
A. Chief Information Officer (CIO) B. Chief Planning Officer (CPO) C. Chief Executive Officer (CEO) D. Chief Financial Officer (CFO)
Which of the following is a true statement about Herzberg's Hygiene-Motivator theory?
A) Highly motivated workers rely equally on lower-level and higher-level needs. B) Assigning workers to teams can eliminate job-associated stress and frustration. C) Providing employees with feedback and challenge satisfies their lower-level needs. D) Managers can create a self-motivated workforce by providing feedback and recognition.