Assume the same facts in part b except that there is a 2000

Reference no: EM13578079

Here is information related to Virtual Corporation for 2013:

Total sales (90% are on credit) $2,000,000

Accounts receivable at December 31 500,000

Prepare the appropriate journal entries for the following cases:

a) What amount of bad debt expense will Virtual Corporation report if it estimates that the bad debt expense is .6% of credit sales?

b) Assume that Virtual Company decides to estimate its bad debt expense based on 4% of accounts receivable. What amount of bad debt expense will the company record if it has an Allowance for Doubtful Accounts credit balance of $4,000?

c) Assume the same facts in part (b), except that there is a $2,000 debit balance in Allowance for Doubtful Accounts. What amount of bad debt expense will Virtual record?

Reference no: EM13578079

Questions Cloud

Rainbow paints operates a chain of retail paint stores : rainbow paints operates a chain of retail paint stores. although the paint is sold under the rainbow label it is

Overhead per month when operating at the one shift level is : the breezy boat company manufactures two models of boats nine and twelve foot sail boats and sell the boats through

Sanchez corporation is considering three long-term capital : sanchez corporation is considering three long-term capital investment proposals. relevant data on each project are as

At december 31 2007 norbett company had 500000 shares of : at december 31 2007 norbett company had 500000 shares of common stock issued and outstanding 400000 of which had been

Assume the same facts in part b except that there is a 2000 : here is information related to virtual corporation for 2013total sales 90 are on credit 2000000accounts receivable at

On may 1 2007 logan co issued 300000 of 7 bonds at 103 : on may 1 2007 logan co. issued 300000 of 7 bonds at 103 which are due on april 30 2017. twenty detachable stock

Assuming bsc entered into no other activities during its : business sim corp. bsc issued 1000 shares to kelly in exchange for 12000. bsc borrowed 30000 from the bank promising to

Chase corp sold 200 1000 65 percent bonds at 105 on march 1 : chase corp sold 200 1000 6.5 percent bonds at 105 on march 1 2006. each bond has 10 warrants attached and each warrant

The following standards for variable manufacturing overhead : the following standards for variable manufacturing overhead have been established for a company that makes only one

User Account

All Pages