Business, 14.03.2020 04:12 teethebeast

At December 31, Tremble Music had account balances in Accounts Receivable of $300,000 and in Allowance for Uncollectible Accounts of $1,000 (debit) before any adjustments. An analysis of Tremble's December 31 accounts receivable suggests that 5% of the account balances are not expected to be collected. The balance of Allowance for Uncollectible Accounts after adjustment will be:
A. $1,000
B. $16,000
C. $14,000
D. $15,000

Answers: 2

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Answer from: HUNIXX6561

C. $14,000

Explanation:

At December 31, Tremble Music had account balances in Accounts Receivable of $300,000 and in Allowance for Uncollectible Accounts of $1,000 (debit) before any adjustments.

An analysis of Tremble's December 31 accounts receivable suggests that 5% of the account balances are not expected to be collected, which is 5% x $300,000 = $15,000

The balance of Allowance for Uncollectible Accounts after adjustment will be: $1000 (debit) + $15,000 (credit) = $14,000 credit

Answer from: Gigglygoose3159

B) $16,000

Explanation:

Allowance for uncollectible accounts is a contra asset account that has a credit balance. It reduces accounts receivable by the amount of estimated bad debts.

In this case, since the account has a debit balance, and the estimated bad debts are $15,000 (= $300,000 x 5%), it must be credited by $15,000 + $1,000 = $16,000

The journal entry should be:

December 31, adjustments for bad debt expense.

Dr Bad debts expense 16,000

Cr Allowance for uncollectible accounts 16,000

Answer from: Quest

income statement is prepared in order to show the profits and loss of a business. in order to prepare the income statement she should collect all the income and expenses of the product with the cost of production.

Answer from: Quest

$527.7.if the following was the question $527.7 is the answer.students who are trying to raise funds have an agreement with a local pizza chain. the chain has agreed to sell them pizzas at a discount, which the students can then resell to families in the local community for a profit. it is expected that of the 500 families in the community, at most 70% will buy pizza. based on a survey of their personal preferences, the students believe that they should order no more than 120 cheese pizzas, no more than 150 pepperoni pizzas, and no more than 100 vegetarian pizzas. they also want to make sure that at least 20% of the total pizzas are cheese and at least 50% of the pizzas are pepperoni. they make a profit of $1.45, $1.75, and $1.98, respectively, for each cheese, pepperoni, and vegetarian pizza they resell. how many pizzas of each type should they buy?

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At December 31, Tremble Music had account balances in Accounts Receivable of $300,000 and in Allowan...

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