What is the amount required for the adjusting journal entry

Assignment Help Accounting Basics

Reference no: EM131881379

Question: 1) Compute profit margin ratio given the following information:

Cost of Goods Sold $28,000

Net Income 21,400

Gross Profit 400,000

A) 5%

B) 7%

C) 1.65%

D) 6.64%

E) 76.42%

2) Vine Company began operations on January 1, 2010. During its first year, the company completed a number of transactions involving sales on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows:

a) Sold $1,348,300 of merchandise (that had cost $983,600) on credit, terms n/30

b) Wrote off $19,400 of uncollectible accounts receivable

c) Received $666,100 cash in payment of accounts receivable

d) In adjusting the accounts on December 31, the company estimated that 2.90% of accounts receivable will be uncollectible

What is the amount required for the adjusting journal entry to record bad debt expense?

A) $18,644.90

B) $39,100.70

C) $19,783.80

D) $19,221.20

E) $19,400.20

Reference no: EM131881379

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