Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 03, 2024

Unlucky Inc. offers its customers 60 days to pay off their accounts. In 2019, they had a total net credit sales of $1,000,000, and on

Unlucky Inc. offers its customers 60 days to pay off their accounts.

In 2019, they had a total net credit sales of $1,000,000, and on Dec 31st 2019, they have $200,000 AR outstanding.

The managers estimate that 19% of AR are uncollectible.

On Dec 31st 2019, prior to adjusting entries, Unlucky Inc. reports a balance on their Allowance for doubtful accounts of $14,250.

What is the amount of bad debt expense that Unlucky Inc. should recognize for the year of 2019?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Auditing

Authors: A. Pandu

1st Edition

8189630822, 978-8189630829

More Books

Students also viewed these Accounting questions

Question

★★★★★

Explain the alternatives a taxpayer has in claiming the deduction and credit for research and experimentation expenditures.

Answered: 1 week ago

Question

★★★★★

Strategically evaluate potential foreign distribution options for a given situation

Answered: 1 week ago

Question

★★★★★

1. Pretest students to make sure they have prerequisite abilities.

Answered: 1 week ago

Question

★★★★★

Why is the liabilities section of the balance sheet of primary significance to bankers?

Answered: 1 week ago

Question

★★★★★

The yield to maturity ( YTM ) on 1 - year zero - coupon bonds is 7 % and the YTM on 2 - year zeros is 8 % . The yield to maturity on 2 - yearmaturity coupon bonds with coupon rates of 1 1 % ( paid...

Answered: 1 week ago

Question

★★★★★

Question 3 ( 0 . 6 points ) An index of prices paid by producers for their input is: Consumer Price Index ( CPI ) Wage Index Number ( WIN ) Producer Price Index ( PPI ) Wholesale Price Index ( WPI )

Answered: 1 week ago

Question

★★★★★

15} A logging contractor has three feller bunchers. On any given day, each machine has a 90% chance of working. The contractor is considering buying a fourth feller buncher to offset the possibility...

Answered: 1 week ago

Question

★★★★★

Company XYZ, a mason contractor, received a government contract amounting to $400,00.00 from Mercy City's Department of General Services for the purpose of "pointing" the joints of the stone exterior...

Answered: 1 week ago

Question

★★★★★

QB1 (a) A motor gives gear A a clockwise angular velocity of @A rad/s and an anti- clockwise angular acceleration a rad/s, as shown in figure QB1. If the angular velocity of gear B is @B = 3 rad/s...

Answered: 1 week ago

Question

★★★★★

Question 1. This question basically asks you to compare the Net Present Value (NPV) to the Internal Rate of return (IRR) on the time length of an investment project.. a. Draw a "growth curve" for a...

Answered: 1 week ago

Question

★★★★★

Mary Tam is a civil engineer who was assigned a month ago to work with a team that builds roads and bridges across Canada. After a couple of weeks, Mary went to the head of HR to report that her...

Answered: 1 week ago

Question

★★★★★

8. Sometimes viewed as a Scandinavian tortilla, these potato flatcakes are often sold in areas with high Scandinavian American populations: a. Lefse b. Lutefisk c. Aquavit d. Fiskepudding

Answered: 1 week ago

Question

★★★★★

What is the relationship between humans?

Answered: 1 week ago

Question

★★★★★

What is the orientation toward time?

Answered: 1 week ago

Previous Question Next Question