subject
Business, 31.03.2020 00:46 ilovebeanieboos

The Dubious Company operates in an industry where all sales are made on account. The company has experienced bad debt losses of 1.00% of credit sales in prior periods. Presented below is the company's forecast of sales and expenses over the next three years. Year 1 Year 2 Year 3 Sales Revenue $ 370,000 $ 376,000 $ 375,000 Bad Debt Expense Unknown Unknown Unknown Other Expenses 338,000 335,000 341,750 Net Income Unknown Unknown Unknown Required: Calculate Bad Debt Expense and net income for each of the three years, assuming uncollectible accounts are estimated as 1.00% of sales. Assume that the company changes its estimate of uncollectible credit sales to 1.00% in Year 1, 2.00% in Year 2 and 1.50% in Year 3. Calculate the Bad Debt Expense and net income for each of the three years under this alternative scenario.

ansver
Answers: 2

Another question on Business

question
Business, 22.06.2019 00:00
1tanner invested $135,000 cash along with office equipment valued at $32,400 in the company in exchange for common stock. 2 the company prepaid $7,200 cash for 12 months’ rent for office space. (hint: debit prepaid rent for $7,200.) 3 the company made credit purchases for $16,200 in office equipment and $3,240 in office supplies. payment is due within 10 days. 6 the company completed services for a client and immediately received $2,000 cash. 9 the company completed a $10,800 project for a client, who must pay within 30 days. 13 the company paid $19,440 cash to settle the account payable created on april 3. 19 the company paid $6,000 cash for the premium on a 12-month insurance policy. (hint: debit prepaid insurance for $6,000.) 22 the company received $8,640 cash as partial payment for the work completed on april 9. 25 the company completed work for another client for $2,640 on credit. 28 the company paid $6,200 cash in dividends. 29 the company purchased $1,080 of additional office supplies on credit. 30 the company paid $700 cash for this month’s utility bill. prepare general journal entries to record these transactions. 2. post the journal entries from part 1 to the ledger accounts.
Answers: 2
question
Business, 22.06.2019 04:30
What is the second step in communication planning? determine the purpose of the message outline the communication for delivery determine the best channel of communication clarify objectives identify the audience
Answers: 2
question
Business, 22.06.2019 18:10
Consumers who participate in the sharing economy seem willing to interact with total strangers. despite safety and privacy concerns, what do you think is the long-term outlook for this change in the way we think about interacting with people whom we don't know? how can businesses to diminish worries some people may have about these practices?
Answers: 1
question
Business, 22.06.2019 20:00
A$100 million interest rate swap has a remaining life of 10 months. under the terms of the swap, the six-month libor is exchanged semi-annually for 12% per annum. the six-month libor rate in swaps of all maturities is currently 10% per annum with continuous compounding. the six-month libor rate was 9.6% per annum two months ago. what is the current value of the swap to the party paying floating? what is its value to the party paying fixed?
Answers: 2
You know the right answer?
The Dubious Company operates in an industry where all sales are made on account. The company has exp...
Questions
question
English, 18.08.2021 23:20
question
Mathematics, 18.08.2021 23:20
question
Social Studies, 18.08.2021 23:20
question
Mathematics, 18.08.2021 23:30
question
Mathematics, 18.08.2021 23:30
question
Mathematics, 18.08.2021 23:30
Questions on the website: 13722362