Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. elect of doubtful accounts on net income duning it

Elect of doubtful accounts on net income Duning its first year of operations, Mack's Plumbing...

90.2K

Verified Solution

Question

Accounting

image
Elect of doubtful accounts on net income Duning its first year of operations, Mack's Plumbing Supply Ca. had sales of $390,000, wrote off $6,000 of accounts as uncollectable using the direct wnite off inethod, and reported ner ncome of $42,900. Assume that dunng the second year of aperabions Mack's Plumbing Supply Co. had sales of $468,000, wrote olf $7,200 of nccounts as uncollectithe using the diroct write off method, and reported net incorve of $46,800. a. Determine what net income would have been in the second year if the ablowance method (using 1.75% of sales) had been used in both the fins and uscand years. b. Determine what the balance of the allowance for doutsul accoints would have been at the end of the second year if the allowance method had been useif in both the firat and second vears. If required, use the minus sign to indicate a "debin" balance

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

Please complete the following problems. Please explain and show your work for all calculations: You intend...

Finance
1.2K views

Why would T-bonds be an attractive investment, post 2008, even though they had such miserably low...

Biology
1.2K views

A broad-based, pyramid-shaped age structure diagram is characteristic of a population that isgrowing rapidlyat carrying...

Biology
1.2K views

Which of the following is true about scientific theories?Scientific theories can be revised, changed, or...

Geometry
1.2K views

You have a standard deck of playing cards from which you randomly select a card...

Accounting
1.2K views

Kitchen World Inc. is a Canadian controlled private corporation (CCPC) that operates a retail business...

Accounting
1.2K views

Bus 213 Managerial Accounting Chapter 23 Excel HW (2 of 2) Due Date: Friday, December...

Accounting
1.2K views

Clopack Company manufactures one product that goes through one processing department called Mixing. All raw...

Accounting
1.2K views

Esfandairi Enterprises is considering a new three-year expansion project that requires an initial fixed asset...

Accounting
1.2K views

use the FIFO method to complete the table provided below for the stated transactions ...

Accounting
1.2K views

A physical inventory of Liverpool Company taken at December 31 reveals the following. Required: 1....

Finance
1.2K views

Ades Inc. expects EBIT of $325,000,000 this year. Its capital structure consists of one quarter...