MC Qu. 95 A company uses the percent of sales method... A company uses the perce
ID: 2584591 • Letter: M
Question
MC Qu. 95 A company uses the percent of sales method... 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: Accounts receivable Allowance for doubtful accounts Net Sales $375,000 debit 500 debit 800,000 credit I sales are made on credit. Based on past experience the company estimates that 06% of credit sales are uncollectible. What amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared? O $4,800 $1,275 O $5,500 O $1,775 O $4,500Explanation / Answer
1.
Answer : $4800
Credit sales $800000
Uncollectible 0.6%
Bad debts $4800.
c. Answer : $49.75
D. September 9 Petty cash $300
To cash $300.
Date Cost of goods available to use Cost of goods sold Ending inventory Dec 2 5 units * $7 = $35 5 units * $7 = $35 9 10 units * $9.40 = $94 15 units * $8.6 = $129 11 12 units * $8.6 = $103.2 3 units * $8.6 = $25.8 15 20 units * $10.15 = $203 23 units * $9.947 = 228.8 22 18 units * $9.947 = $179.046 5 units * $9.947 = $49.735.Related Questions
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