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murzikaleks [220]
2 years ago
10

ABC Corporation had a 1/1/20 balance in the Allowance for Doubtful Accounts of $40,000. During 2020, it wrote off $28,800 of acc

ounts and collected $8,400 on accounts previously written off. The balance in Accounts Receivable was $960,000 at 1/1 and $800,000 at 12/31. At 12/31/20, Vasguez estimates that 5% of accounts receivable will prove to be uncollectible. What is Bad Debt Expense for 2020
Business
1 answer:
SVETLANKA909090 [29]2 years ago
6 0

Answer:

$20,400

Explanation:

The computation of the bad debt expense for 2020 is shown below:

Ending balance of Allowance for Uncollectible Accounts = Beginning balance of Allowance for Uncollectible Accounts + bad debts -write off amount

where,

Ending balance of allowance for uncollected accounts is

= $800,000 × 5%

= $40,000

Beginning balance of Allowance for Uncollectible Accounts is $40,000

And, the written off amount is

= $28,800 - $8,400

= $20,400

So, the bad debt expense is

= $40,000 - $40,000 + $20,400

= $20,400

We simply applied the above formula so that the bad debt could arrive

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Delores Bierlein paid a $200 deposit toward the rental of the Silver Room at Alex's Continental Inn for her wedding reception. L
sweet-ann [11.9K]

Answer:

It does not

Explanation:

In this question, we are asked to evaluate if a particular transaction carried out between a customer and an inn falls within the dictates of the local consumer protection law in the state.

Firstly, we look at what the local consumer protection law of the state talks about. It explicitly stated that customers should get receipts when suppliers receive deposits from them. Thus, this make the receipt act as the first thing to have if there would be any claim under the consumer protection law for the transaction carried out in the state.

Now, looking at the particular scenario we have, the customer paid for the room, but he was not issued a receipt. This makes the case not treatable within the consumer protection law of the state as the receipt which should have been a prerequisite for further exploration is not available

3 0
2 years ago
Read 2 more answers
An economy produces 1,000,000 computers valued at $2,000 each. Households purchase 200,000 computers, of which 100,000 are impor
Irina18 [472]

Answer:

$800 million

Explanation:

GDP = consumption (C) + investment (I) + government spending (G) + Net Export (NX)

Y = C + I + G + NX

The number of computers left is

= 1,000,000 - 200,000 (household) - 300,000 (businesses) - 300,000 (government) - 100,000 (Foreign)

= 100,000

This worth 100,000 × $2,000 = 200 million

                  300,000 computers × $2,000 = 600 million

Total of these two = 200 + 600 million

                              = 800 million

Therefore, the value of the investment component of GDP is $800 million.

7 0
2 years ago
The rising popularity of bubble and squeak as a breakfast item on the menu has resulted in a steady demand for peas. Over the co
Paha777 [63]

Answer:

The average inventory if they order at the optimal order quantity is 1.335

Explanation:

Accordin to the formula

Optimal order quantity = \sqrt{2*yearly demand * Order cost/Holding cost}

=\sqrt{2*52*457*3 / 0.02}

= 2670

Average inventory = Optimal order quantity / 2 = 1335.

6 0
2 years ago
Two airlines serve the route between Tampa and Houston. What will happen to one airline if the other one raises its​ prices? A.
Alina [70]

Answer:

D. Its demand curve will shift to the right

Explanation:

If two airlines are competing for the same market, and airline A raises its price, the airline B will benefit because now it will be cheaper compared to the other one.

This means that more people will be willing to purchase tickets from airline B at any given price (in this case, the same price as before), shifting the demand curve of airline B to the right.

4 0
2 years ago
Davis Corporation manufactures and sells portable radios. The radio sells for​ $60 per unit and its variable costs per unit are​
Dafna11 [192]

Answer:

$1,440,000

Explanation:

sales volume =​ 37,000 radios

Selling price per unit = $60

Variable costs per unit = $20

Fixed costs = $40,000

Monthly operating income

= Sales revenue - Variable costs - Fixed costs

= ($60 × 37,000) - ($20 × 37,000) - $40,000

= $2,220,000 - $740,000 - $40,000

= $1,440,000

Therefore, the flexible budget would reflect $1,440,000 as a monthly operating income for a sales volume of​ 37,000 radios.

4 0
2 years ago
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