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2 At December 31, the company had account balances in Accounts Receivable of $50,000 and in |Allowance for Uncollectible Accounts (AUA) of $300 (credit) before any adjustments. An analysis of the company's December 31 accounts receivable suggests that the allowance for uncollectible accounts should be 5% of accounts receivable. After the adjusting entry, what is the balance in the AUA account?

2 At December 31, the company had account balances in Accounts Receivable of $50,000 and in |Allowance for Uncollectible Accounts (AUA) of $300 (credit) before any adjustments. An analysis of the company's December 31 accounts receivable suggests that the allowance for uncollectible accounts should be 5% of accounts receivable. After the adjusting entry, what is the balance in the AUA account?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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What the answer for 2 because it’s not 2,200 or 2,800
1 The company's bank statement shows a cash balance of $12,000. Comparing the company's cash records with the monthly bank statement reveals several additional cash transactions such as checks outstanding of $7,000, deposits outstanding of $7,500, NSF check of $200, and service fee of $25 and a $1,200 note receivable collected by the bank. Calculate the correct balance of cash: $ 2 At December 31, the company had account balances in Accounts Receivable of $50,000 and in Allowance for Uncollectible Accounts (AUA) of $300 (credit) before any adjustments. An analysis of the company's December 31 accounts receivable suggests that the allowance for uncollectible accounts should be 5% of accounts receivable. After the adjusting entry, what is the balance in the AUA account? 2$ 3 The company had $30,000 of inventory on December 31, Year 2. During the year they purchased $650,000 and cost of goods was $640,000. What was the company's beginning inventory for Year 2? $ 4 Use the following to calculate pretax income (IBT): $_ 5,000 Sales revenue Interest revenue 300,000 Income tax expense 4,000 Cost of goods sold 175,000 Selling expenses 14,000 Salaries expense 85,000 Utilities expense 5,000 Rent expense 6,000 The company purchased new equipment at the beginning of year 1 for $300,000. Management estimated they would use the equipment for 4 years and when they were done using it they estimated the 5 residual value would be $30,000. What is the equipment's book value at the end of year 3 assuming the company uses straight-line deprecation? $
Transcribed Image Text:1 The company's bank statement shows a cash balance of $12,000. Comparing the company's cash records with the monthly bank statement reveals several additional cash transactions such as checks outstanding of $7,000, deposits outstanding of $7,500, NSF check of $200, and service fee of $25 and a $1,200 note receivable collected by the bank. Calculate the correct balance of cash: $ 2 At December 31, the company had account balances in Accounts Receivable of $50,000 and in Allowance for Uncollectible Accounts (AUA) of $300 (credit) before any adjustments. An analysis of the company's December 31 accounts receivable suggests that the allowance for uncollectible accounts should be 5% of accounts receivable. After the adjusting entry, what is the balance in the AUA account? 2$ 3 The company had $30,000 of inventory on December 31, Year 2. During the year they purchased $650,000 and cost of goods was $640,000. What was the company's beginning inventory for Year 2? $ 4 Use the following to calculate pretax income (IBT): $_ 5,000 Sales revenue Interest revenue 300,000 Income tax expense 4,000 Cost of goods sold 175,000 Selling expenses 14,000 Salaries expense 85,000 Utilities expense 5,000 Rent expense 6,000 The company purchased new equipment at the beginning of year 1 for $300,000. Management estimated they would use the equipment for 4 years and when they were done using it they estimated the 5 residual value would be $30,000. What is the equipment's book value at the end of year 3 assuming the company uses straight-line deprecation? $
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