Question: Last year Pastis Productions reported 100 000 in sales and
Last year, Pastis Productions reported $ 100,000 in sales and $ 40,000 in cost of goods sold. The company estimates it would have doubled its sales and cost of goods sold had it allowed customers to buy on credit, but it also would have incurred $ 50,000 in additional expenses relating to wages, bad debts, and interest. Should Pastis Productions extend credit?
Answer to relevant QuestionsOn December 31, 2014, Extreme Fitness has adjusted balances of $ 800,000 in Accounts Receivable and $ 55,000 in Allowance for Doubtful Accounts. On January 2, 2015, the company learns that certain customer accounts are not ...Using the information in M8-7 and M8-8, prepare the journal entry to record the end-of-period adjustment for bad debts under the (a) percentage of credit sales method and (b) aging of accounts receivable method. Which of ...Refer to the information about Sears given in E8-14. Required: Complete the following table indicating the direction of the effect (+ for increase, – for decrease, and NE for no effect) of each transaction during ...Brown Cow Dairy uses the aging approach to estimate Bad Debt Expense. The balance of each account receivable is aged on the basis of three time periods as follows: (1) 1– 30 days old, $ 12,000; (2) 31– 90 days old, $ ...Expedia, Inc., disclosed the following rounded amounts (in thousands) concerning the Allowance for Doubtful Accounts on its Form 10-K annual report. Required: 1. Create a T-account for the Allowance for Doubtful Accounts and ...
Post your question