Bulldog Company had the following account balances at December 31, Year 1: Accounts Receivable $650,000 Allowance for doubtful accounts before any provision for Year 1 doubtful accounts expense $14,000 Credit Sales for Year 1 $1,250,000 Bulldog is considering the following method of estimating doubtful accounts expense for year 1: Based on credit sales at 3% Based on accounts receivable at 6% What amount should Bulldog charge to bad debt expense under each method? % of credit sales % of accounts receivable A. $37,500 $25,000 B. $51,500 $39,000 C. $37,500 $39,000 D. $51,500 $25,000
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A flash flood swept through FMB, Inc.’s warehouse on May 1….
A flash flood swept through FMB, Inc.’s warehouse on May 1. After the flood, FMB’s accounting records showed the following: Inventory, January 1 $45,000 Purchases, January 1 through May 1 $145,000 Sales, January 1 through May 1 $200,000 Inventory not damaged by flood $20,000 Gross profit percentage on sales 45% What amount of inventory was lost in the flood?
During the current fiscal year, Keenum Corp. signed along-te…
During the current fiscal year, Keenum Corp. signed along-term noncancellable purchase commitment with its primary supplier. Keenum agreed to purchase $2.62 million of raw materials during the next fiscal year under this contract. At the end of the current fiscal year, the raw material to be purchased under this contract had a market value of $1.34 million. What is the journal entry at the end of the current fiscal year? A: Estimated Liability on Purchase Commitment 1,280,000 Gain on Purchase Commitment 1,280,000 B: Loss on Purchase Commitment 1,340,000 Estimated Liability on Purchase Commitment 1,340,000 C: Loss on Purchase Commitment 1,280,000 Estimated Liability on Purchase Commitment 1,280,000 D: No journal entry is required
6. Which of the following is an advantage of the single-step…
6. Which of the following is an advantage of the single-step income statement over the multiple-step income statement?
8. Expensing the cost of a wastebasket with an estimated use…
8. Expensing the cost of a wastebasket with an estimated useful life of 10 years when purchased is an example of the application of the
23.a. The transaction price allocated to the pool is:
23.a. The transaction price allocated to the pool is:
Dicer Company uses the conventional retail method to determi…
Dicer Company uses the conventional retail method to determine its ending inventory at cost. Assume the beginning inventory at cost (retail) was $390,000 ($594,000), purchases during the current year at cost (retail) were $2,055,000 ($3,300,000), freight-in totaled $129,000, sales during the current year totaled $3,000,000, and net markups(markdowns) were $72,000 ($108,000). What is Dicer’s ending inventory value at cost?
2. The purpose of Statements of Financial Accounting Concept…
2. The purpose of Statements of Financial Accounting Concepts is to
Use the following information for questions 19 and 20: Magnu…
Use the following information for questions 19 and 20: Magnus Carlsen provides Hans Niemann $100,000 in services on terms 2/10, n/30. Hans pays 20% of the balance 9 days later and the remaining balance 15 days later.
20.b. What is current period depreciation expense?
20.b. What is current period depreciation expense?