![janellesteele7498](/avatars/30321.jpg)
janellesteele7498
19.03.2021 •
Business
In its first year of operations, Cloudbox has credit sales of $200,000. Its year-end balance in accounts receivable is $10,000, and the company estimates that $1,500 of its accounts receivable is uncollectible.
a. Prepare the year-end adjusting entry to estimate bad debts expense.
b. Prepare the current assets section of Cloudboxâs classified balance sheet assuming Inventory is $22,000, Cash is $14,000, and Prepaid Rent is $3,000. Note: The company reports Accounts receivable, net on the balance sheet.
Solved
Show answers
More tips
- S Science and Technology When do we change our clocks?...
- A Animals and plants How to Teach Your Parrot to Talk?...
- F Family and Home How to Remove Fading from Clothes: Tips and Tricks...
- F Food and Cooking How to Make Polendwitsa at Home?...
- F Family and Home Parents or Environment: Who Has the Most Influence on a Child s Upbringing?...
- P Philosophy Unbelievable stories of encounters with otherworldly forces...
- L Leisure and Entertainment How to Choose the Perfect Gift for Men on February 23rd?...
- H Health and Medicine How to Treat Whooping Cough in Children?...
- H Health and Medicine Simple Ways to Lower Cholesterol in the Blood: Tips and Tricks...
- O Other How to Choose the Best Answer to Your Question on The Grand Question ?...
Answers on questions: Business
- B Business What are the risks and benefits of implementing a penetration pricing policy as compared to a competitive pricing policy?...
- B Business Orion Flour Mills purchased a new machine and made the following expenditures: Purchase price $56,000 Sales tax 5,050 Shipment of machine 810 Insurance on the machine...
- B Biology Which embryos would appear the most similar during development? A) Fish and crabs B) Sheep and Rabits C) Squid and Lions D) Shrimp and elephants...
- C Computers and Technology You have just performed a cpm analysis and have found that more than one path through the project network has zero slack values. What can you conclude?...
- E English Use this card and write a ballad with an unspecified meter (just have a rhythm) you must have at least 10 quatrains you must use at least three different kinds of figurative...
Ответ:
Cloudbox
a) Year-end adjusting entry to estimate bad debts expense:
Debit Bad Debts Expense $1,500
Credit Allowance for Uncollectible accounts $1,500
To record the uncollectible allowance.
b) Current Assets Section of the Balance Sheet:
Cash $14,000
Accounts receivable (net) 8,500
Inventory 22,000
Prepaid Rent 3,000
Total current assets $47,500
Explanation:
a) Data and Calculations:
Credit sales = $200,000
Accounts receivable ending balance = $10,000
Estimated uncollectible accounts = $1,500
Cash $14,000
Accounts receivable (net) $8,500 ($10,000 -$1,500)
Inventory $22,000
Prepaid Rent $3,000
Ответ:
YOUR PASSWORD TO WHAT
Explanation: