Adjusting entry include a credit to allowance account

Reference no: EM13157448

Chen Company's account balances at December 31, 2007 for Accounts Receivable and the Allowance for Doubtful Accounts are $320,000 debit and $600 credit. Sales during 2007 were $900,000. It is estimated that 1% of sales will be uncollectible. The adjusting entry would include a credit to the allowance account for:

1. $9,600.

2. $9,000.

3. $8,400.

4. $3,200.

Reference no: EM13157448

Questions Cloud

Probability that robbery was filmed at least by one camera : Let a success (x) be defined as a camera functioning. Find the probability that the robbery was filmed at least by one camera.

Evaluating investment decisions : Businesses commonly use methods such as Net Present Value (NPV) and Internal Rate of Return (IRR) for evaluating investment decisions. Compare and contrast these two methods describing their relative strengths and weaknesses.

Why did prices rise sharply over the past five years : According to the articles, why did prices rise sharply over the past 5 years? Answer in terms of a supply-demand analysis, saying what specifically has happened to supply and demand and how this has increased prices.

Critically evaluate process used to formulate the strateghy : How would a Balanced Scorecard for Chadwick Inc differ from ones developed in its divisions, such as the Norwalk Pharmaceutical Division? Do you anticipate that there might be major conflicts between divisional scorecards and those of the corporation..

Adjusting entry include a credit to allowance account : Chen Company's account balances at December 31, 2007 for Accounts Receivable and the Allowance for Doubtful Accounts are $320,000 debit and $600 credit. Sales during 2007 were $900,000. It is estimated that 1% of sales will be uncollectible. The a..

What is the size of the deadweight loss caused by monopolist : The monopolist's marginal cost of production is constant at $11 per product unit. What is the size of the deadweight loss caused by the monopolist choosing to supply 10 units of its product?

Confidence interval for standard deviaiton of ages of senior : Find the 90% confidence interval for the standard deviaiton of the ages of seniors at Oak Park College if a sample of 24 students has a standard deviation of 2.3 years. Assume the variable is normally distributed.

Overhead costs using sequential method : The company does not break overhead into fixed and variable components. The bases for allocation are: power-machine hours, general factory-square feet, and personnel-number of employees. 1. Allocate the overhead costs to the producing departments ..

What is the value of marginal revenue of the unit produced : A monopolist face a market demand curve given by QD = 22 - p. What is the value of the marginal revenue of the 4th unit produced?

User Account

All Pages