If HOTEL’s tax rate is 30%, what amount should it report as bad debts expense in the income statement as an effect of change
Q: Net income at year end will be overstated if O Prepaid expense is not recognized O Accrued income is…
A: Option a is incorrect because if Prepaid Expenses is not recognized, it will increase our expenses…
Q: Victory Company should report bad debts expensefor 2018 of?
A: Accounts Receivable Accounts receivable is considered to be one of the main source of liquidity…
Q: company writes off as uncollectible an account receivable from a bankrupt customer. The company has…
A: Solution: The effect of this transaction in the company's financial statements is that "Net profit…
Q: which of the following transactions and events would result in an improvement in Interest Coverage…
A: The correct answer for the above mentioned question is given in the following steps for your…
Q: ETHICS While vacationing you find a $100 bill on the report it as taxable income? Why or why not?…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: a. Fill in the missing numbers in the following income statement: Note: Do not round intermediate…
A: In this question, we are required to calculate the EBIT, taxes, Net Income, Operating Cash Flow, and…
Q: I need to know why is "increase in prepaid rent" deducted?
A: The cash flow statement is prepared to record the cash flow from various activities during the…
Q: What are bad debts?
A: Hi Student Since there are multiple questions, we will answer only first question. If you want…
Q: Which of the following statement is correct? Select one: a. Return on assets is the ratio of net…
A: The ratio is the measure of a relationship between two figures. In accounting, ratio analysis is…
Q: Fill in the missing numbers for the following income statement. (Do not round intermediate…
A: Income statement is a financial statement that shows profitability, total revenue and total expenses…
Q: Suppose the Tax Code is "Percetage Tax - 3% of Sales", the presented income statement is correct.…
A: False, with regard to date, since December 31, 2022 has not yet arrived, so income statement upto…
Q: By what amount will income (before taxes) be adjusted up or down as a result of the corrections?…
A: Current assets: Current assets are all those assets that are expected to be sold or used as a result…
Q: Select one of the following short-term (current) liabilties and describe some of the accounting…
A: Account Payable Account Payable is a short-term debt. It is define as the liability for the company,…
Q: The following item is not a debt: Dividends payable in shares. Advances paid by clients on…
A: Solution a: Dividend payable in shares is not a debt instead same is part of shareholder's equity.…
Q: Which of the following is NOT a factor in the calculation of a FICO score?
A: FICO score FICO score is a credit score created by the Fair Isaac Corporation.
Q: How much is the income tax expense/(benefit) for the third quarter? (NOTE: If your answer is an…
A: Formula: Income tax expense amount = Net income x Tax rate
Q: Business taxpayers with annual sales or receipts higher than the VAT threshold who opted to register…
A: Answer to the above case study is option e) All of the other choices is incorrect. Detailed…
Q: I need step by step instructions for the problem e) what is the average income tax rate?** I know…
A: For computing the Average income tax rate, the income tax expenses shall be divided by Net income…
Q: Income tax expense has not yet been recorded. The income tax rate is 40%. Determine the following:…
A: Operating profit refers to the amount of profit earned by a business through its operations.…
Q: Based on a change in economic conditions, Company X has determined that its allowance for doubtful…
A: An accounting change refers to any modification made by a company to the way it records, presents,…
Q: For which of the following sources of income would the entire amount be required to be included in a…
A: A company following cash method will taxed on all gross income received during the tax period.…
Q: choose the right answer e debts which are to be repaid within a short period (a year or less) are…
A: Liabilities: Liabilities refers to the financial obligation of the business it does not include…
Q: Which if the following is not an inclusion in gross income?
A: Gross income is an income from all sources including returns , discounts and…
Q: What does an increase in the allowance for receivables result in? A A decrease in current…
A: Account receivable: The amount of money to be received by a company for the sale of goods and…
Q: As a company, to minimize the present worth of taxes paid to the federal government, use longest…
A: Tax: Tax is a financial charge imposed by the county's government on the income of the person, and…
Q: (To help answer this question, create an Income Taxes Payable T-account and insert the beginning…
A: Income tax payable is a type of account in the current liabilities section of a company's balance…
Q: Communication (income statement): The balance of Interest Expense from accruing interest to be paid…
A: The adjustment entries are prepared to adjust the revenue and expenses for the current period. The…
Q: IS Taise! DI
A: In Phillipines VAT is charged @ 12% and the businesses exceeding…
Q: EBIT Taxes (22%) Net income
A: Operating cash flow refers to the amount of cash that is generated from normal business activities…
Q: Alternative Accounting Treatments a. Estimate the amount of liability and record. b. Do not record…
A: Contingent liabilities are those liabilities which might be incurred through entity grounded on the…
Q: Recording bad debt expense under the allowance method will have what effect on the financial…
A: The allowance method involves setting aside a reserve for bad debts that are expected in the future.…
Q: Situation 1 Zee Company recorded the following data at the end of the current year. Accounts…
A: Allowance for doubtful accounts means where we expect some debts to become bad in near future then…
If HOTEL’s tax rate is 30%, what amount should it report as
Trending now
This is a popular solution!
Learn your way
Includes step-by-step video
Step by step
Solved in 2 steps
- ABC Company's Allowance for Doubtful Accounts had a credit balance of P150,000 at December 31, 2019. During 2020, uncollectible accounts of P35,000 had been written off. The company estimates its bad debts expense to be 2% of net sales. The balance of the allowance account at the end of 2020 was P437,000.Required:Compute for ABC's net sales for 2020.) Vandross Company has recorded bad debt expense in the past at a rate of 1½% of accounts receivable, based on an aging analysis. In 2020, Vandross decides to increase its estimate to 2%. If the new rate had been used in prior years, cumulative bad debt expense would have been $380,000 instead of $285,000. In 2020, bad debt expense will be $120,000 instead of $90,000. If Vandross’s tax rate is 30%, what amount should it report as the cumulative effect of changing the estimated bad debt rate?In 2020, Ahmad Company had credit.1 sales of $800,000 and granted sales discounts of $20,000. On January 1, 2011, Allowance for Doubtful Accounts had a credit balance of $22,500. During 2011, $31,500 of uncollectible accounts receivable were written off. Past experience indicates that 3% of net credit sales become uncollectible. What should be the adjusted balance of Allowance for ?Doubtful Accounts at December 31, 2020
- Hahn Company uses the percentage of sales method for recording bad debt expense. For the year, cash sales are RM300,000 and credit sales are RM1,500,000. Management estimates that 1% is the sales percentage to use. What adjusting entry will Hahn Company make to record the bad debt expense? O A. Bad Debt Expense . 18,000 Allowance for Doubtful Accounts 18,000 O B. Bad Debt Expense . 15,000 Allowance for Doubtful Accounts 15,000 O C. Bad Debt Expense 15,000 Accounts Receivable . 15,000 O D. Bad Debt Expense 18,000 Accounts Receivable 18,000On January 1, 2020, the balance of accounts receivable of Ortega Company was P5,000,000 and the allowance for doubtful accounts on same date was P800,000. The following data were gathered: Problem 7 Writeoffs Recoveries Credit sales P250,000 400,000 650,000 1,100,000 P20,000 2017 P10,000,000 2018 14,000,000 2019 16,000,000 2020 25,000,000 30,000 50,000 145,000 Doubtful accounts are provided for as percentage of credit sales. The accountant calculates the percentage annually by using the experience of the three years prior to the current year. 7. How much should be reported as 2020 doubtful accounts expense?Data on Shicksal Inc. for 2021 are shown below, along with the days sales outstanding of the firms against which it benchmarks. The firm's new CFO belleves that the company could reduce its receivables enough to reduce Its DSO to the benchmarks' average. Use a 365-day year. (computations can be rounded to two decimal places, final answer rounded to nearest peso) Sales P110,000 Accounts receivable P16,000 Benchmarks' days sales outstanding (DSO) 20.00 Fill up your answers on the next three questions. The questions for this data set are: • What is the days sales outstanding under the current level of receivables? (Round final answer to two decimal places) • What should be the level of receivables if the company followed the benchmarks' DSO? (Computations can be rounded to two decimal places, final answer rounded to nearest peso) • If the benchmark's DSO was followed subsequently, by how much would receivables decline? (Computations can be rounded to two decimal places, final answer…
- Ivanhoe Company provides for doubtful accounts based on 4.0% of credit sales. The following data are available for 2020: Credit sales during 2020 $3,020,000 Allowance for doubtful accounts 1/1/20 37,700 Collection of accounts written off in prior years (customer credit was re-established) 15,500 Customer accounts written off as uncollectible during 2020 36,100 What is the balance in Allowance for Doubtful Accounts at December 31, 2020? Allowance for doubtful accounts 12/31/20 $Enter your answer in accordance to the question statementPeter Enterprises uses the Allowance Method for accounting for Bad Debts. Peter also uses the percentage of credit sales method for prediction. At the end of the year 2020, Peter Enterprises estimates that Doubtful Debts are 5% of the total credit sales $10,100,000 (2020 Year). The correct entry to record the prediction of the Bad Debts Expense on 31st December 2020, is: Select one: O a. Debit Allowance for Doubtful Debts $505,000 Credit Bad Debt Expense $505,000 O b. Debit Bad Debt Expense $505,000 Credit Accounts Receivable $505,000 O C. Debit Accounts Receivable $505,000 Credit Allowance for Doubtful Debts $505,000 O d. Debit Bad Debt Expense $505,000 Credit Allowance for Doubtful Debts $505,000Vandross Company has recorded bad debt expense in the past at a rate of 1½% of accounts receivable, based on an aging analysis. In 2017, Vandross decides to increase its estimate to 2%. If the new rate had been used in prior years, cumulative bad debt expense would have been $380,000 instead of $285,000. In 2017, bad debt expense will be $120,000 instead of $90,000. IfVandross’s tax rate is 30%, what amount should it report as the cumulative effect of changing the estimated bad debt rate?
- Sunland Company provides for doubtful accounts based on 4.0% of credit sales. The following data are available for 2020: Credit sales during 2020 $3,080,000 Allowance for doubtful accounts 1/1/20 35,500 Collection of accounts written off in prior years (customer credit was re-established) 18,000 Customer accounts written off as uncollectible during 2020 36,500 What is the balance in Allowance for Doubtful Accounts at December 31, 2020? Allowance for doubtful accounts 12/31/2021 .......?Theon Company has $4,000,000 of sales and $200,000 of accounts receivable for the year. The company estimates 2% of its sales will become uncollectible. If Allowance for Doubtful Accounts has a $900 credit balance, the adjustment to record uncollectible accounts for the period will require a debit to bad debt expense for: Group of answer choices $79,100 $80,000 $3,100 $80,900Clovis Enterprises reports $845,500 in credit sales for 2018 and $933,000 in 2019. It has a $758,000 accounts receivable balance at the end of 2018 and $841,000 at the end of 2019. Clovis uses the income statement method to record bad debt estimation at 4% during 2018. To manage earnings more favorably, Clovis changes bad debt estimation to the balance sheet method at 5% during 2019. A. Determine the bad debt estimation for 2018. B. Determine the bad debt estimation for 2019. C. Describe a benefit to Clovis Enterprises in 2019 as a result of its earnings management.