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

  Taxable income

Determine taxable income before considering expense.

  Prepare a tax research memo

Prepare a tax research memo to the file that addresses the issues you feel are most relevant to Mimi's various issures.

  Income by ordinary concepts

Explain what is meant by income by ordinary concepts

  Identify the tax issues

Identify the tax issues that are raised and the relevant sections of the legislation. Identify any cases and other sources of law or information that apply.

  Calculate carolines taxable income

Calculate Carolines taxable income

  Taxation – law and practice

Show the tax issues that are raised and the relevant sections of the legislation.

  Payment to the taxpayer

Brief statement in your own words of the facts of the cases.

  Prepare regular corporation tax return

Prepare the C Regular Corporation Tax Return for the Lawson And Norman Enterprise

  Taxation law

Advise the participants in the ‘barter' system of the income tax implications, if any, of participating in the system.

  A tax on cigarettes is a good way of raising tax revenue

Discuss- A tax on cigarettes is a good way of raising tax revenue for the government

  Prepare the required journal entry

Prepare the required journal entry to record the tax expense

  Calculate barbs taxable income

Calculate Barb's taxable income? What nonrefundable credit is Barb eligible for based on the information you have?

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