Fisherman Company uses the percent-of-sales method to estimate uncollectibles. Net credit sales for the current year...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Fisherman Company uses the percent-of-sales method to estimate uncollectibles. Net credit sales for the current year amount to $120,000, and management estimates 3% will be uncollectible. Fisherman Company's balance of Allowance for Uncollectible Accounts after adjustments, was $3,400. The following year, Fisherman Company wrote off $2,400 of old receivables as uncollectible. What is the balance in the Allowance account now? The balance in the Allowance account is now $ Fisherman Company uses the percent-of-sales method to estimate uncollectibles. Net credit sales for the current year amount to $120,000, and management estimates 3% will be uncollectible. Fisherman Company's balance of Allowance for Uncollectible Accounts after adjustments, was $3,400. The following year, Fisherman Company wrote off $2,400 of old receivables as uncollectible. What is the balance in the Allowance account now? The balance in the Allowance account is now $
Expert Answer:
Answer rating: 100% (QA)
Answer The balance in Allowance Account is now 4600 Explanation Net credit sal... View the full answer
Related Book For
Financial Accounting an introduction to concepts, methods and uses
ISBN: 978-0324789003
13th Edition
Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis
Posted Date:
Students also viewed these accounting questions
-
The Connecting Company uses the percent of sales method of accounting for uncollectible accounts receivable. During the current year, the following transactions occurred: Sept 7 Connecting Company...
-
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: All...
-
Grimms Hardware Company uses the percent of sales method of estimating uncollectible accounts expense for its monthly financial reporting and the aging of receivables method for its year-end...
-
All numbers are in $ '000. Consider an income property. Next three years its NOIs will be $25,000, $28,000 and $30,000. Then NOI will be growing at a constant rate of 3% per year. If you buy the...
-
In question 13, (a) What statistical principle should Foofy be concerned with? (b) Identify three problems with her study from a statistical perspective. (c) Why would correcting these problems...
-
Evaluate the equilibrium constant at \(600 \mathrm{~K}\) for the reaction \[ \mathrm{CO}(\mathrm{g})+2 \mathrm{H}_{2}(\mathrm{~g}) ightarrow \mathrm{CH}_{3} \mathrm{OH}(\mathrm{g}) \] Data Table: 0...
-
On April 1, 2006, US Ultracom issued 7\%, 10-year bonds payable with maturity value of \(\$ 400,000\). The bonds pay interest on March 31 and September 30, and US Ultracom amortizes premium and...
-
Assume all of the companys sales are on account. The accounts receivable balance at the beginning of the year was $512, and the ending balance was $481. During the year, the company had sales of...
-
a) Marcia's Leather Knits makes and sells leather jackets. Prior to starting 2021, Marcia made flexible budgets for 900, 1,200, 1,500 sales volume levels. Given the following budget and actual data,...
-
The Stratton Township Park is located on a piece of property that contains two golf courses, a swimming pool, and 800 acres of woods and open spaces. Three years ago, the Stratton Park Department...
-
The optimum number of nodes on a logistics network is one where the sum of the transportation cost, warehousing cost and the cost of carrying inventory is the highest. True False
-
Your department has a reoccurring problem with receiving materials on time and the reasons are various. The only way to identify what is causing this problem is to examine the shipping paperwork each...
-
Titleist Inc produces two types of golf balls for the retail consumer. They want to know which golf ball produces the greatest profit and they want to maintain at least $1.50 of profit per golf ball,...
-
Identify and evaluate the components of a comprehensive total rewards and motivation system? Illustrate with specific examples.
-
What type of approach is most commonly used for procedures on the digestive organs? Explain why that approach is used.
-
Discuss the cultural differences between China and the United States. What would be the biggest adjustments I might need to make if working there as an expatriate? What are the most...
-
If a company has total sales of forty six thousand dollars in 2023 and total sales of nine thousand in 2022, how would an analyst calculate the horizontal analysis in dollars?
-
Aztec Furnishings makes hand-crafted furniture for sale in its retail stores. The furniture maker has recently installed a new assembly process, including a new sander and polisher. With this new...
-
Dual effects on balance shed equation. Fresh Foods Group, a European food retailer that operates supermarkets in sewn countries, engaged in the following three transactions during 2008: (1) Purchased...
-
An airline has depreciated its new aircraft in the past over 25 years. New fuel usage and safety standards indicate that a shorter useful life is now appropriate for all of its existing aircraft....
-
Behavior of deferred income tax account when a firm acquires new assets every year. Equilibrium Company has adopted a program of purchasing a new machine each year. It uses a prescribed method of...
-
Assume Knowlton Holdings Ltd. completed these long-term non-strategic investment transactions during 2020 : 1. Journalize Knowlton's investment transactions assuming the company reports any changes...
-
Suppose on February 1, 2020, General Motors paid \(\$ 41\) million for a \(40 \%\) investment in ABC Ltd., an auto parts manufacturer. Assume \(A B C\) earned net income of \(\$ 6\) million and paid...
-
Return to exercise SB-7, the Prudential Bache (PB) investment in CitiCorp bonds. Journalize the following on PB's books: a. Purchase of the bond investment on January 2, 2020. PB expects to hold the...
Study smarter with the SolutionInn App