User Account

All Pages

What is the dollar effect of the year-end bad debt

Assignment Help Taxation
Reference no: EM13489994

Chatter Corporation operates in an industry that has a high rate of bad debts. Before any year-end adjustments, the balance in Chatter's Accounts Receivable account was $389,000 and the Allowance for Doubtful Accounts had a debit balance of $5,000. The year-end balance reported in the balance sheet for the Allowance for Doubtful Accounts will be based on the aging schedule shown below:

Days Account Outstanding 
 Amount  Probability of Collection
Less than 16 days $293,000 .97
Between 16 and 30 days $102,000 .89
Between 31 and 45 days $ 70,000 .83
Between 46 and 60 days $ 55,000 .76
Between 61 and 75 days $ 28,000 .60
Over 75 days $ 8,000 .30
  1. What is the appropriate balance for the Allowance for Doubtful Accounts at year-end?
  2. Show how accounts receivable would be presented on the balance sheet.
  3. What is the dollar effect of the year-end bad debt adjustment on the before-tax income?

Reference no: EM13489994

Questions Cloud

Explain the weakest n-to-o covalent bond : Explain which of the following species has the weakest N-to-O covalent bond: HONO, NO2-, NO2, N2O, NO3-
Determine the number of moles of air : The pressure of air in your house can stay constant during the day if the temperature rises. Determine the number of moles of air that leave the house during the day time
Explain how many grams of aluminum can be formed : Its thermal decomposition can be represented by: 2Al2O3 (s) = 4Al (s) + 3O2 (g) deltaHrxn = 1676 kJ. If aluminum is produced this way, how many grams of aluminum can be formed when 1.000 x 10^6 J of heat is transferred
What is the mass of the larger asteroid : A small asteroid is discovered in a circular orbit around a larger asteroid at a distance of 19.39 km. The period of the orbit is measured to be 76.76 hours. What is the mass of the larger asteroid
What is the dollar effect of the year-end bad debt : What is the dollar effect of the year-end bad debt adjustment on the before-tax income?
Explain the major product when p-fluoroanisole reacts : What is the major product when p-fluoroanisole reacts with sulfur trioxide and sulfuric acid. If applicable, minimize formal charges via expanded octets.
Evaluate the molar heat of solution of rbbr : When a 2.00 g sample of RbBr is dissolved in a calorimeter that has a total heat capacity 0.6306 kJ*K^-1, the temperature decreases by 0.420 K. Calculate the molar heat of solution of RbBr.
What is the pressure at the bottom of the vessel : A container is filled 0.500m deep with Mercury. What is the pressure at the bottom of the vessel
Find the density of the cube : a hollow cube with 12 cm in each side and thickness 1 cm floats half submerged in a liquid of density kg/m^3. find the density of the cube

Reviews

Write a Review

Taxation Questions & Answers

  You are a cpa and a tax senior at roll accounting inc rai

you are a cpa and a tax senior at roll accounting inc. rai an accounting professional corporation in canada. it is now

  Ace company purchased a machine valued at 320000 on 1st

ace company purchased a machine valued at 320000 on 1st august. the equipment has an evaluated useful life of five

  Determine their amount of federal tax

The genius financial advisor had taxes withheld on the transfer of annuity in the amount of $22,000.

  Income tax return for the costs

Jed wants to know whether he can claim a deduction under section 179 on his 2013 income tax return for the costs incurred in 2009 with respect to planting the vineyard.

  The higher net present value of after-tax cash flow

Which of these options has the higher net present value of after-tax cash flow? Show your calculations. Use a discount rate of 3%.

  Part a explain why the payment to the taxpayer in fct v

part a explain why the payment to the taxpayer in fct v dixon 1952 86 clr 540 was assessable income but the payment in

  Assess the supremacy provision in the federal constitution

assess the supremacy provision in the federal constitution. describe how the passage of a state tax bill is same to the

  Question 1wedge corporation uses a discount rate of 14 and

question 1wedge corporation uses a discount rate of 14 and has a tax rate of 30. the subsequent cash flows occur in the

  How much dividend income do the shareholders report

Falcon Corporation has $200,000 of current E & P and a deficit in accumulated E & P of $90,000. If Swan pays a $300,000 distribution to its shareholders on July 1, how much dividend income do the shareholders report?

  Taxable transfers are exclusions or deductions

Calculate Marys taxable gifts for this year. In your answer, you should address the issues of whether such transfers are gifts for gift tax purposes taxable transfers

  The total after-tax show value of the cash flows

The total after-tax show value of the cash flows above is closest to:

  Purpose the journal entries to record income taxes

Purpose the journal entries for the years 2012-2014 to record income taxes payable refundable, income tax expense benefit, and the tax effects of the loss carryforward and carryback.

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