Diaz company uses the allowance method to account for bad debts. they use the balance sheet approach to estimate the amount of uncollectible accounts.
you have been asked to assist the company in preparing the adjusting entry to record bad debts expense for the year. you review the end of the year accounting information and find the following:
net sales for the year, $676,000. this includes $51,000 of cash sales;

ending balance in accounts receivable, $110,000;

ending balance in the allowance for bad debts account, $871 (debit balance).
after discussions with company management, you determine that 3% of accounts receivable is a reasonable estimate of uncollectible accounts. required:
journalize the entry to record bad debts expense for the year ended december 31.

The struter partnership has total partners’ equity of $510,000, which is made up of main, capital, $400,000, and frist, capital, $110,000. the partners share net income and loss in a ratio of 80% to main and 20% to frist. on november 1, adison is admitted to the partnership and given a 15% interest in equity and a 15% share in any income and loss. prepare journal entries to record the admission of adison for a 15% interest in the equity and a 15% share in any income and loss under the following independent assumptions. (1) record the admission of adison with an investment of $90,000 for a 15% interest in the equity and a 15% share in any income and loss. (2) record the admission of adison with an investment of $120,000 for a 15% interest in the equity and a 15% share in any income and loss. (3) record the admission of adison with an investment of $80,000 for a 15% interest in the equity and a 15% share in any income and loss.

The assumptions of the production order quantity model are met in a situation where annual demand is 3650 units, setup cost is $50, holding cost is $12 per unit per year, the daily demand rate is 10 and the daily production rate is 100. the production order quantity for this problem is approximately:

Adisadvantage of corporations is that shareholders have to pay on profits.