Business, 30.03.2021 18:10 slonekaitlyn01

Barth Company, which has been in business for three years, makes all of its sales on credit and does not offer cash discounts. Its credit sales, customer collections, and write-offs of uncollectible accounts for its first three years follow: Year Sales Collections Accounts written off
2018 751000 733000 5300
2019 876000 864000 5800
2020 978000 932000 6500
a. Barth uses the allowance method of recognizing credit losses that provides for such losses at the rate of I% of sales. (This means the allowance account is increased by I% of credit sales regardless of any write-offs and unused balances.) What amounts for accounts receivable and the allowance for uncollectible accounts are reported on its balance sheet at the end of 2020? What total amount of bad debts expense appears on its income statement for each of the three years?
b. Comment on the appropriateness of the I% rate used to provide for bad debts based on your results in part a. (Hint: T-accounts can help with this analysis.)

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 01:30

At the end of the week, carla receives her paycheck and goes directly to the bank after work to make a deposit into her savings account. the bank keeps the required reserve and then loans out the remaining balance to a qualified borrower named malik as a portion of his small business loan. malik uses the loan to buy a tractor for his construction business and makes small monthly payments to the bank to payback the principal balance plus interest on the loan. the bank profits from a portion of the interest payment received and also passes some of the interest back to carla in the form of an interest payment to her savings account. in this example, the bank is acting

Answers: 1

Answer

Business, 22.06.2019 11:30

Margaret company reported the following information for the current year: net sales $3,000,000 purchases $1,957,000 beginning inventory $245,000 ending inventory $115,000 cost of goods sold 65% of sales industry averages available are: inventory turnover 5.29 gross profit percentage 28% how do the inventory turnover and gross profit percentage for margaret company compare to the industry averages for the same ratios? (round inventory turnover to two decimal places. round gross profit percentage to the nearest percent.)

Answers: 2

Answer

Business, 22.06.2019 14:30

You hear your supervisor tell another supervisor that a fire drill will take place later today when the fire alarm sounds that afternoon you should

Answers: 1

Answer

Business, 22.06.2019 16:20

Stosch company's balance sheet reported assets of $112,000, liabilities of $29,000 and common stock of $26,000 as of december 31, year 1. if retained earnings on the balance sheet as of december 31, year 2, amount to $74,000 and stosch paid a $28,000 dividend during year 2, then the amount of net income for year 2 was which of the following? a)$23,000 b) $35,000 c) $12,000 d)$42,000

Answers: 1

Answer

You know the right answer?

Barth Company, which has been in business for three years, makes all of its sales on credit and does...

Questions