Method for recording bad debts expense

Reference no: EM13177857

Tanning Company uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $200,000 and credit sales are $1,000,000. An aging of accounts receivable shows that 5% will be uncollectible. What adjusting entry will Manning Company make if the Allowance for Doubtful Accounts has a credit balance of $2,000 before adjustment?

Reference no: EM13177857

Questions Cloud

What is the annual tax : What is the annual tax shield to a firm that has total assets of $80 million and a net worth of $55 million, if the average interest rate on debt is 8.5% and the marginal tax rate is 35%?

Different instructional styles for teaching : Locate literature on at least two different instructional styles for teaching the same topic. Compare and contrast the outlines for the unit plans, and select the outline that you would use.

Symbolic form : Providing any one of my three children Peter, Susan and Mathew is telling the truth, then the other two are not. It follows that one of them is telling the truth and the other two are not.

Expanding from single physical location-network topology : Silfinate Corporation is expanding from a single physical location to three physical locations distributed across the county to better serve the needs of their customers. Each of the new locations will have fifteen employees assigned there, and the h..

Method for recording bad debts expense : Tanning Company uses the percentage of receivables method for recording bad debts expense.

Religion-sex or national origin : When may an organization legally hire employees based upon "religion, sex, or national origin"? Provide an example of a job that would permit such a restriction (1 example for each of the three qualifications).

Research conducted by ruth chao suggests : Research conducted by Ruth Chao (2001, 2005) suggests that:

Principle of trying to export more goods than you import : The principle of trying to export (or sell) more goods than you import (or buy); used as a means to make nation’s self-sufficient and not dependent on other nation’s for goods

Recent presidential elections : This party has been on the ballot in all 50 states in recent presidential elections without gaining more than 1 percent of the vote:

User Account

All Pages