FREE Trial

The following items were extracted from the 2012 financial records of Cummins Inc. (dollars in millions): Allowance for doubtful accounts

Question:

The following items were extracted from the 2012 financial records of Cummins Inc. (dollars in millions):
Allowance for doubtful accounts 12 (cr.)
During the following year, the company wrote off $5 of accounts receivable as uncollectible and then estimated $6 of the year’s receivables to be uncollectible. The company did not recover any previously written-off accounts.
a. Prepare the entry to record the bad debt expense.
b. Compute the final balance in allowance for doubtful accounts.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...

This problem has been solved!


Do you need an answer to a question different from the above? Ask your question!

Step by Step Answer:

Answer rating: 66% (12 reviews)

a Bad Debt Charge E SE 6 Allowance for …View the full answer


answer-question
Answered By
tutor-profile-image
ANDREW KIPRUTO
Academic Writing Expert I have over 7 years of research and application experience. I am trained and licensed to provide expertise in IT information, computer sciences related topics and other units like chemistry, Business, law, biology, biochemistry, and genetics. I'm a network and IT admin with +8 years of experience in all kind of environments. I can help you in the following areas: Networking - Ethernet, Wireless Airmax and 802.11, fiber networks on GPON/GEPON and WDM - Protocols and IP Services: VLANs, LACP, ACLs, VPNs, OSPF, BGP, RADIUS, PPPoE, DNS, Proxies, SNMP - Vendors: MikroTik, Ubiquiti, Cisco, Juniper, HP, Dell, DrayTek, SMC, Zyxel, Furukawa Electric, and many more - Monitoring Systems: PRTG, Zabbix, Whatsup Gold, TheDude, RRDtoo Always available for new projects! Contact me for any inquiries
4.30+ 1+ Reviews 10+ Question Solved
Related Book For  answer-question
Financial Accounting in an Economic Context

Financial Accounting in an Economic Context

ISBN: 978-1118582558

9th edition

Authors: Jamie Pratt

See More Books
View Solution
Create a free account to access the answer
Cannot find your solution?
Post a FREE question now and get an answer within minutes. * Average response time.
Question Posted: August 19, 2014 03:35:08
See More Questions

Students also viewed these Accounting questions

Q:
The following information was taken from the 2012 financial records of Price Restaurant Supply Company: The company sold a piece of plant equipment for cash that had originally cost $100,000. The...
A:
Direct method Price Restaurant Supply Company Statement of Cash Flows For the Year Ended December 31 2012 Cash flows from operating activities Cash co......
Q:
The following items were extracted from the 2014 financial records of Cummins Inc. (dollars in millions): Allowance for doubtful accounts 12 (cr.) During the following year, assume the company writes...
A:
a Bad Debt Expense E RE 6 Allowance for......
Q:
The following items were extracted from the 2008 financial records of Cummins, Inc. (dollars in millions): Allowance for doubtful accounts 12 (cr.) During the following year, the company wrote off...
A:
a Bad Debt Charge E SE A c Dr 3 To Allowa......
Q:
The graph of f is given. (a) Why is f one-to-one? f is one-to-one because it passes the ---Select--- ? (b) What are the domain and range of f ? ?1 ?(Enter your answers in interval notation.) domain ?...
A:
a The objective is to predict why the function f is one to one......
Q:
Some operating systems provide a system call rename to give a file a new name. Is there any difference at all between using this call to rename a file and just copying the file to a new file with the...
A:
Yes The rename call does not change the creation ti......
Q:
The average North American loses an average of 15 days per year to colds and flu. The natural remedy Echinacea reputedly boosts the immune system. One manufacturer of Echinacea pills claims that...
A:
P Z 5 89......
Q:
Use the finite universe method to prove that the following symbolized arguments are invalid.
A:
To prove that the given symbolized argument is invalid using the finite universe method we need to s......
Q:
Royal Gorge Company uses the gross profit method to estimate ending inventory and cost of goods sold when preparing monthly financial statements required by its bank. Inventory on hand at the end of...
A:
Requirement 1 Beginning inventory from records 58 500 Plus Net purchases 110 000 4 000 106......
Q:
Recently, DPL appointed its new chief executive officer (CEO) and has been tasked by the board to make a presentation about the financial performance and position of the company for the recent two...
A:
As the Chief Finance Officer of DPL you can prepare a profitability analysis report to the CEO for submission to the board Here s a structured report......
Q:
Gama Investment Ltd has a growth portfolio consisting of an equally weighted holding of four shares. If the economy is experiencing boom conditions which is 69% of the time, the balance will be bust...
A:
Finding the weighted average of the expected returns of each share using the likelihood of e......
Q:
In its 2014 financial report, Sound Unlimited reported the following items: 1. A credit balance of $200,000 in allowance for doubtful accounts. 2. A debit balance of $7,500,000 in accounts...
A:
a Ending Allowance Balance Beginning Allowance Balance Bad......
Q:
On January 1, 2015, Outreach Incorporated sold services to a Canadian supply company and accepted a three-year note in the amount of 11,000 Canadian dollars. Assume that exchange rates between the...
A:
1 1 15 Notes Receivable A 10 450 Sales R SE 10 450 Made sale in ex......
Q:
The case that opens this chapter features Nike. Review this case and pull out as many examples as you can of different key terms and concepts. For example, Nike demonstrated social responsibility...
A:
Some essential phrases and concepts connected to marketing have been fo......
Q:
Consider laminar flow of a fluid through a square channel maintained at a constant temperature. Now the mean velocity of the fluid is doubled. Determine the change in the pressure drop and the change...
A:
To determine the change in the pressure drop and the change in the rate of heat transfer between the......
Q:
A 2.5 m-high, 4-m-wide, and 20-cm-thick wall of a house has a thermal resistance of 0.0125C/W. The thermal conductivity of the wall is (a) 0.72 W/m K (b) 1.1 W/m K (c) 1.6 W/m K (d) 16 W/m K (e)...
A:
To find the thermal conductivity k of the wall we can use the formula for t......
Q:
The velocity profile in fully developed laminar flow in a circular pipe, in m/s, is given by u(r) = 6(1 - 100r 2 ) where r is the radial distance from the centerline of the pipe in m. Determine (a)...
A:
To determine the radius of the pipe a the mean velocity through the pipe b and the maximum velocity......
Q:
98% Find the critical value zA,2 that corresponds to the given confidence level.
A:
To find the critical value z A 2 that corresponds to a given confidence leve......
Q:
Consider two walls, A and B, with the same surface areas and the same temperature drops across their thicknesses. The ratio of thermal conductivities is k A /k B = 4 and the ratio of the wall...
A:
The rate of heat transfer through a wall is given by the formula Q k......
Q:
Each of the following CFGs has a production using the symbol and yet is not a word in its language. Using the algorithm in this chapter, show that there are other CFGs for these languages that do...
A:
i The only possible s......
Q:
Continuation of Exercise 4-83. (a) What is the probability that the first major crack occurs between 12 and 15 miles of the start of inspection? (b) What is the probability that there are no major...
A:
15 a P 12 X 15 0 2ex dx 02x 5 12 e 0 4 e 0 0409 12 b P X 5 ex e 0 3679......
Q:
For twenty years, Westinghouse Electric Corp. used PCBs in the manufacture of electrical capacitors at its plain in Bloomington, Indiana. A federal consent decree has ordered the company to be...
A:
The case describes a typical scenario that usually occurs while enforcing the debt covenant restrictions Many times such agreements or decrees explici......
Q:
The Wall street journal reported (April 13, 2007) that shareholders of Kraft Foods can afford to give management more time to improve its brands, sales margins, and earnings because of the dividends...
A:
a An investor can make a return through 1 capital appreciation the stock moving up in value 2 receip......
Q:
The stock in Dow Jones & Co., Inc. (the publisher of the Wall Street Journal) has a book value (shareholders equity per share) of approximately $6. Prior to a buyout offer, the stock had been trading...
A:
a Book value of a stock is simply the equity on the balance sheet divided by the number of equity shares outstanding This figure is driven by Generall......
Essentials Of Obstetrics And Gynecology 4th Edition - ISBN: 0721601790 - Free Book