acounting question 496008

A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company’s unadjusted trial balance reported the following selected amounts:

Don't use plagiarized sources. Get Your Custom Essay on
acounting question 496008
For $10/Page 0nly
Order Essay

Accounts receivable $ 361,000 debit
Allowance for uncollectible accounts 560 credit
Net sales 806,000 credit

All sales are made on credit. Based on past experience, the company estimates 0.4% of credit sales to be uncollectible. What amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared?
$2,004
$3,784
$3,224
$884
$2,664

2.

On March 17, Grady Company agrees to accept a 60-day, 8%, $9,300 note from Alert Company to extend the due date on an overdue account. What is the journal entry needed to record the payment of the note by Alert Company on the maturity date?
Debit Notes Payable $9,300; debit Interest Expense $124; credit Cash $9,424.
Debit Cash $9,424; credit Interest Revenue $124; credit Notes Payable $9,300.
Debit Cash $9,424; credit Interest Revenue $124; credit Notes Receivable $9,300.
Debit Notes Payable $9,300; debit Interest Expense $186; credit Cash $9,486.
Debit Notes Payable $9,300; credit Interest Expense $124, credit Cash $9,176

admin

Recent Posts

Economic Debate #3- Progressive Income Tax – The Homework Helper

Economic Debate- Progressive Income Tax For this Economic Debate, we are going to discuss the…

2 years ago

MKT 6120 – Marketing Management – Davis Learning Engagement #7

TOPIC: Going Global Discussion Thread 1 (initial post due Wednesday for full credit) Please note:…

4 years ago

jvjvjhvjhvhjvj

Assignment Topic This week will culminate in the creation of a narrated PowerPoint to create…

4 years ago

Students are supposed to select a technological organization of their choice.

The Assignment must be submitted on Blackboard (WORD format only) via allocated folder. Assignments submitted…

4 years ago

Increases the risk of wildfires

you need to post your 2-page information flier to share with your Final Project Group.…

4 years ago

Statistics for Technology management

discussion: Discuss the methods used at your company to measure and ensure quality products and…

4 years ago