The following information pertains to Lightning Inc., at the end of December: Credit Sales $ 60,000 Accounts Payable 10,000 Accounts Receivable 7,000 Allowance for Uncollectible Accounts 400 credit Cash Sales 20,000 Lightning uses the aging method and estimates it will not collect 2% of accounts receivable not yet due, 10% of receivables up to 30 days past due, and 40% of receivables greater than 30 days past due. The accounts receivable balance of $7,000 consists of $3,500 not yet due, $2,000 u
1 answer
Question:
the following information pertains to Lightning Inc., at the end of December: Credit Sales $ 60,000 Accounts Payable 10,000 Accounts Receivable 7,000 Allowance for Uncollectible Accounts 400 credit Cash Sales 20,000 Lightning uses the aging method and estimates it will not collect 2% of accounts receivable not yet due, 10% of receivables up to 30 days past due, and 40% of receivables greater than 30 days past due. The accounts receivable balance of $7,000 consists of $3,500 not yet due, $2,000 up to 30 days past due, and $1,500 greater than 30 days past due. What is the appropriate amount of Bad Debt Expense
Answers
Answer:the appropriate amount of Bad Debt Expense=$870Explanation:Given that for Lightning Inc., at the end of December: Credit Sales $60,000 Accounts Payable 10.000 Accounts Receivable 7.000 Allowance for Uncollectible Accounts 400 creditCash Sales 20,000 Using the aging method and estimates it states that the following would be uncollectible 1. 2% of accounts receivable not yet due, $3500 which is 2 % x 3500= $70 2. 10% of receivables less than 30 days past due, $2000 which is 10% x 2000=$200 3. 40% of receivables greater than 30 days past due,$1500 which is 40% x$1500=$600 Appropriate amount of Bad Debt Expense= Allowance for Uncollectible Accounts =$70+$200+$600==$870 Therefore, Bad debt expense =$870 Allowance for Uncollectible Accounts=$870s
Similar Solved Questions
1 answer
Find the measures of two complementary angles if one angle is 18degrees more than three times the other angle.
Find the measures of two complementary angles if one angle is 18degrees more than three times the other angle....
1 answer
Can someone help me in about to cry- this stuff is due 11:00 today and I don’t get it .
Can someone help me in about to cry- this stuff is due 11:00 today and I don’t get it ....
2 answers
Simplify each expression -4b+2b I also need work shown so if you show me steps on how you did it id appreciate it :)
simplify each expression -4b+2b
I also need work shown so if you show me steps on how you did it id appreciate it :)...
2 answers
Help pls help pls help pls help pls help pls
Help pls help pls help pls help pls help pls...
2 answers
We were ordering pizza for eight students. Each student should have at least two slices. Each pizza is cut into five slices.What is the minimum number of pizzas we should order(we can only order whole pizza)?
We were ordering pizza for eight students. Each student should have at least two slices. Each pizza is cut into five slices.What is the minimum number of pizzas we should order(we can only order whole pizza)?...
1 answer
What does the expression 150t —4.99 represent? 150t—4.99t- represent
What does the expression 150t —4.99 represent?
150t—4.99t- represent...
1 answer
1.What was the name given to a fee charged before a person could vote
1.What was the name given to a fee charged before a person could vote...
1 answer
Why doesn't the narrator's mother tell the narrator that she has taken a Jobel The mother fears the narrator and her sister will show up all work, The mother feels her job is not the narrator's business The mother is waiting for a promotion to tell anyone she has a job The mother is embarrassed that she has to work
Why doesn't the narrator's mother tell the narrator that she has taken a Jobel
The mother fears the narrator and her sister will show up all work,
The mother feels her job is not the narrator's business
The mother is waiting for a promotion to tell anyone she has a job
The mother is embarrassed that...
1 answer
Arrange the equations in the correct sequence to rewrite the formula for displacement, d = vt-at?, to find a. In the formula, dis displacement, vis final velocity, a Is acceleration, and t is time. 2(vt -d)=at^2 a=2(d – vt)/12 2(d-vt) = at^2 vt-d=1/2 at^2 d-vt = 1/2at^2 a=2(vt-d)/t^2
Arrange the equations in the correct sequence to rewrite the formula for displacement, d = vt-at?, to find a. In the formula, dis
displacement, vis final velocity, a Is acceleration, and t is time.
2(vt -d)=at^2
a=2(d – vt)/12
2(d-vt) = at^2
vt-d=1/2 at^2
d-vt = 1/2at^2
a=2(vt-d)/t^2...
2 answers
To find the slope of a line can you choose any two points on the line?
to find the slope of a line can you choose any two points on the line?...
1 answer
Plot the number 2.78 on the number line please help me
Plot the number 2.78 on the number line please help me...
1 answer
What was the Truman Doctrine and how was it applied to Greece and Turkey??
What was the Truman Doctrine and how was it applied to Greece and Turkey??...
1 answer
What is the slope of the line through (-7,-7) and (-6,7)
What is the slope of the line through (-7,-7) and (-6,7)...
2 answers
_______ custody grants both parents responsibilities and rights toward the child. A. Physical B. Joint or shared C. Sole D. Legal
_______ custody grants both parents responsibilities and rights toward the child. A. Physical B. Joint or shared C. Sole D. Legal...
1 answer
Solve for w in the equation w-2(8-w)=-31. using your answer, evaluate the expression 2w+1. a) -9 b) -5 c)31 d)47
solve for w in the equation w-2(8-w)=-31. using your answer, evaluate the expression 2w+1.
a) -9 b) -5 c)31 d)47...
2 answers
The soccer team collected $800 at a car wash fundraiser. They charged $5.00 for small vehicles and $10.00 for larger vehicles. The amount collected can be modeled by the equation 5 x plus 10 y equals 800, where x represents the number of small vehicles and y represents the number of larger vehicles. If the number of larger vehicles washed was 50, how many small vehicles were washed in total?
The soccer team collected $800 at a car wash fundraiser. They charged $5.00 for small vehicles and $10.00 for larger vehicles. The amount collected can be modeled by the equation 5 x plus 10 y equals 800, where x represents the number of small vehicles and y represents the number of larger vehicles....
1 answer
In Waddell v. Rustin, Waddell was not declared an implied partner despite her testimony that she and her romantic partner ran their business as partners, including her involvement in management and oversight of business projects, access to company checkbook, payment of company bills, and assistance in choosing construction projects. a. True b. False
In Waddell v. Rustin, Waddell was not declared an implied partner despite her testimony that she and her romantic partner ran their business as partners, including her involvement in management and oversight of business projects, access to company checkbook, payment of company bills, and assistance ...