Business, 08.09.2020 14:01, CatsandDogsaredabest

Apply the allowance method: Mouse Ears Inc. has been in business for five years. At the end of each reporting period management uses the allowance method for estimating and recognizing bad debt expense. You have been hired to prepare the journal entry to recognize bad debt using management's estimate for this reporting period. Mouse Ears Inc.'s management provides you with the following information: Net sales of $5,250,000, accounts receivable of $820,000 and the allowance for doubtful accounts of $200,000. After management aged the receivables, they concluded that 25% of the $820,000 accounts receivable would not be collectible. Using the allowance method - What would the correct journal entry be to record / to recognize bad debt expense based on management's estimate? A) Bad Debts Expense $205,000 Allowances for Doubtful Accounts $205,000
B) Bad Debts Expense $5,000 Allowance for Doubtful Accounts $5,000
C) No entry needs to be made

Answers: 1

Show answers

Other questions on the subject: Business

Business, 22.06.2019 11:20, andrea1704

Aborrower takes out a 30-year adjustable rate mortgage loan for $200,000 with monthly payments. the first two years of the loan have a "teaser" rate of 4%, after that, the rate can reset with a 5% annual payment cap. on the reset date, the composite rate is 6%. what would the year 3 monthly payment be?

Answers: 3

continue

Business, 22.06.2019 16:10, boogerbuttday

Omnidata uses the annualized income method to determine its quarterly federal income tax payments. it had $100,000, $50,000, and $90,000 of taxable income for the first, second, and third quarters, respectively ($240,000 in total through the first three quarters). what is omnidata's annual estimated taxable income for purposes of calculating the third quarter estimated payment?

Answers: 1

continue

Business, 22.06.2019 19:00, Anonymouslizard

All of the following led to the collapse of the soviet economy except a. a lack of worker incentives. c. inadequate supply of consumer goods. b. a reliance on production quotas. d. the introduction of a market economy.

Answers: 1

continue

Business, 22.06.2019 20:00, LJ710

Miller mfg. is analyzing a proposed project. the company expects to sell 14,300 units, plus or minus 3 percent. the expected variable cost per unit is $15 and the expected fixed cost is $35,000. the fixed and variable cost estimates are considered accurate within a plus or minus 3 percent range. the depreciation expense is $32,000. the tax rate is 34 percent. the sale price is estimated at $19 a unit, give or take 3 percent. what is the net income under the worst case scenario?

Answers: 2

continue

Do you know the correct answer?

Apply the allowance method: Mouse Ears Inc. has been in business for five years. At the end of each...