Simple uses the percentage of credit sales method

Assignment Help Financial Accounting

Reference no: EM131291917

Assume Simple Co. had credit sales of $246,000 and cost of goods sold of $146,000 for the period. Simple uses the percentage of credit sales method and estimates that 1 percent of credit sales would result in uncollectible accounts. Before the end-of-period adjustment is made, the Allowance for Doubtful Accounts has a credit balance of $210.

What amount of Bad Debt Expense would the company record as an end-of-period adjustment?

Reference no: EM131291917

Questions Cloud

Calculate the total cost and the unit cost : The Mahoney Company has two producing departments: Assembly and Finishing. The company has been using a plantwide predetermined overhead rate based on direct labor hours. The following estimates were made for the current year: Assume that Mahoney use..

Journal entry to record the allocation of any underapplied : Donuts Inc. has provided the following data for the month of July. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month. The journal entry..

What is the adjusted bank balance at november : The ending bank statement balance at November 30 is $6,750. The bank statement shows a service charge of $65?, electronic funds receipts of? $500, and a NSF check for? $350. Deposits in transit total $2,050 and outstanding checks are $1,335. The bala..

Utilizing the five steps for conducting tax research : Since the 1950s, companies have seen the advantage of operating in various countries as multinational corporations (MNCs), and today, almost all large companies are considered to be an MNC. Once again, the MNC is under scrutiny by authorities for try..

Simple uses the percentage of credit sales method : Assume Simple Co. had credit sales of $246,000 and cost of goods sold of $146,000 for the period. Simple uses the percentage of credit sales method and estimates that 1 percent of credit sales would result in uncollectible accounts. What amount of Ba..

The appropriate bad debt adjustment was recorded : Blackhorse Productions, Inc. used the aging of accounts receivable method to estimate that its Allowance for Doubtful Accounts should be $20,000. The account had an unadjusted credit balance of $12,000 at that time. The appropriate bad debt adjustmen..

Prepare journal entries for each transaction : Prior to recording the following, Elite Electronics, Inc. had a credit balance of $1,200 in its Allowance for Doubtful Accounts. Prepare journal entries for each transaction.

General journal format entry to record issuance of bonds : On September 1, 2014, Universal Coat Company sold at 104 (plus accrued interest) 3,000 of its 8%, 10-year, $1,000 face value, nonconvertible bonds with detachable stock warrants. Prepare in general journal format the entry to record the issuance of t..

Difference between ideal standard and a practical standard : What is the difference between an ideal standard and a practical standard in the context of standard costing? What would be some examples? Cost variance is the difference between a standard cost and actual cost. When standard cost > actual cost, we c..

User Account

All Pages