User Account

All Pages

What amount of bad debts expense will bee record

Assignment Help Accounting Basics
Reference no: EM131144334

Information related to Bee Company for 2010 is summarized below.

Total credit sales........... $1,100,000
Accounts receivable at December..... 31 369,000
Bad debts written off.......... 22,150

Instructions

(a) What amount of bad debts expense will Bee Company report if it uses the direct write-off method of accounting for bad debts?

(b) Assume that Bee Company decides to estimate its bad debts expense to be 2% of credit sales. What amount of bad debts expense will Bee record if Allowance for Doubtful Accounts has a credit balance of $3,000?

(c) Assume that Bee Company decides to estimate its bad debts expense based on 6% of accounts receivable. What amount of bad debts expense will Bee Company record if Allowance for Doubtful Accounts has a credit balance of $4,000?

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

(e) What is the weakness of the direct write-off method of reporting bad debts expense? 

Reference no: EM131144334

Questions Cloud

Explain the idea of value based management and how sharehold : Explain the idea of value-based management and how shareholder value relates to the interaction between product and capital markets
Determine the value of ending inventory if the sales value : Determine the value of ending inventory if the sales value at splitoff method is used for product costing. Round to three decimal places when necessary.
Journalize and post to the allowance account the following : May 1, a check for $1,900 is received from the customer whose account was written off as uncollectible on March 1.
Determine the amount of joint cost allocated to each product : Determine the amount of joint cost allocated to each product if the physical-measure method is used.
What amount of bad debts expense will bee record : Assume the same facts as in (c), except that there is a $2,000 debit balance in Allowance for Doubtful Accounts.What amount of bad debts expense will Bee record?
Assume that no cash discounts were taken on the collections : Prepare the journal entries to record each of these five transactions. Assume that no cash discounts were taken on the collections of accounts receivable.
Determine the amount allocated to each product if the estima : Determine the amount allocated to each product if the estimated net realizable value method is used, and compute the cost per case for each product.
Kloppenberg company prepares financial statements annually : Kloppenberg Company prepares financial statements annually. During the year the following selected transactions occurred.
Describe what would happen to a company value chain : Describe what would happen to a company’s value chain if all electronic devices and systems suddenly were unavailable and an expected time for resolution time was unknown. Could a value chain be maintained without electronics and technology to suppor..

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd