Determining amount of bad debt expense

Assignment Help Accounting Basics
Reference no: EM13145347

Assume Simple Co. had credit sales of $250,000 and cost of goods sold of $150,000 for the period. Simple uses the percentage of credit sales method and estimates that ½ percent of credit sales would result in uncollectible accounts. Before the end-of-period adjustment is made, the Allowance for Doubtful Accounts has a credit balance of $250.

What amount of Bad Debt Expense would the company record as an end-of-period adjustment?

Reference no: EM13145347

Questions Cloud

How does this affect your income statement : Assume that after the entries in part (a) wer made, a physical count revealed that ending inventory was actually 610 units. What additional entry is required? How does this affect your income statement?
Settlement of an open accounts receivable : Paper Company receives a $6,000, 3-month, 6% promissory note from Dame Company in settlement of an open accounts receivable. What entry will Paper Company make upon receiving the note?
Probability mean number of diagnostic services is more : If you select a random sample of 200 children and observe the number of diagnostic services each of them receives, what is the probability that the mean number of diagnostic services is more than 1.72?
What would net carrying value of the bonds : Assuming that Little uses the straight-line method of amortization and that the bonds are appropriately classified as available-for-sale, what would net carrying value of the bonds be shown as on Little's December 31, 2007, balance sheet?
Determining amount of bad debt expense : What amount of Bad Debt Expense would the company record as an end-of-period adjustment?
Distinguish the inheritance of dominant and recessive genes : What genetic criteria distinguish the inheritance of dominant and recessive genes? Autosomal and sex linked?
What is the gain or loss recognized by the corporation : What is the gain or loss recognized by the corporation when it issues its shares to Bill? What is the basis to the corporation of the property it received from Bill?
Concept of working capital : Discuss the concept of working capital what shall be the repercussions if the firm has
What is the probability of obtaining a spotted, grey-eyed : In addition, the L,l allelic pair is subject to abnormal transmission ratios in males only, such that heterozygous males transmit 70% l-bearing sperm and 30% L-bearing sperm.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Estate tax exemption problem

Gift tax returns were filed reporting these gifts. How much of her estate is subject to federal estate tax after considering the estate tax exemption?

  Deductions of lease payment as operating expenses

X company bought many equipment and sub-lease them with some margin to its customers. Customers will own after the lease payments. Question: Can X company claim depreciation of these equipments given of sublease? X company claims deductions of lea..

  Benefits and costs of sarbanes-oxley

What are the benefits and costs of Sarbanes-Oxley? Should Sarbanes-Oxley be reformed? What provisions would you include in a revised Sarbanes-Oxley.

  Standard using traditional costing by direct labor

Overhead applied to Standard using traditional costing using direct labor hours is:

  Riskiness of new operation versus old operation

Discuss the effect on profits if volume increases to 700,000 units under both the old and the new production environments. Comment on the riskiness of the new operation versus the old operation.

  What is giambi inventory turnover

what is Giambi's inventory turnover? Giambi Corp had beginning inventory $10,000, cost of goods purchased $700,000, and ending inventory $140,000.

  Budgeting time and valuing risk management

Justify the time it takes to put together a budget for a human resource project. Support your justification by creating a hypothethical example of a human resource project. Relate specific elements of your example to support your justification.

  Prepare a chronological list of the investments cash

Compute the investment's net present value, rounding calculations to the nearest dollar.

  Information about gaap

What are Generally Accepted Accounting Principles (GAAP)? How does GAAP affect financial reporting? How does GAAP need to change to accommodate today's dynamic business environment?

  Financial statement analysis

he gross profit on the sale of a pair of shoes is 39%,if expenses are 25% of the selling price and the cost price is $17.95, what is the selling price and the gross profit in dollars?

  Merchandising operation

Wilson Company makes all sales all sales of industrial bearings under terms of FOB shipping point. The company usually receives orders for sales approximately one week before shipping inventory to customers.

  Temporary or permanent book-tax differences

Determine Rogene's taxable income for the current year. Identify any temporary or permanent book-tax differences.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd