# Jay Inc. estimates uncollectible accounts using the percentage-of-receivables method and expects that 3.5% of outstanding receivables will be uncollectible for 2016. The balance in Accounts Receivable is \$243,000, and the Allowance for Doubtful Accounts has a credit balance of \$4,300 before adjustments at year-end. The Bad Debt Expense for 2016 will be:Select one:a. \$8,505b. \$5,423c. \$4,205d. \$4,300

c. \$ 4,205

Explanation:

Computation of Estimated uncollectible accounts

Accounts Receivable balance                                                         \$ 243,000

Percentage of outstanding receivable considered uncollectible        3.5 %

Uncollectible accounts balance = \$ 243,000 * 3.5 %                  \$    8,505

Existing balance in uncollectible account                                     \$  ( 4,300)

Bad debts expense for the year                                                      \$  4,205

## Related Questions

Suppose the price level reflects the number of dollars needed to buy a basket of goods containing one can of soda, one bag of chips, and one comic book. In year one, the basket costs \$9.00. In year two, the price of the same basket is \$8.00. From year one to year two, there is at an annual rate of . In year one, \$72.00 will buy baskets, and in year two, \$72.00 will buy baskets. This example illustrates that, as the price level falls, the value of money . rises,falls,remains the same

From Year 1 to Year 2 : There is annual deflation 11.11%

As price falls, value of money rises

Explanation:

Given : Commodity Basket Cost = \$9 in Year 1 ; Commodity Basket Cost = \$8 in Year 2

From Year 1 to Year 2 : There has been fall in price level. Proportionate (%) Fall in price level = Change in Price / Old Price x 100

So, Fall in price level = [ ( 9 - 8 ) / 9] x 100 = 1/9 x 100 = 11.11%

Hence, from year 1 to year 2 : there has been 11% fall in price i.e Deflation

Considering Income = \$72  :

• Year 1 : It can purchase 72 / 9 = 8 commodity baskets
• Year 2 : It can purchase 72 / 8 = 9 commodity baskets

So, it illustrates that : As price falls, the purchasing power of money (value of money) rises.

A category of assets that typically has zero in the Free Assets column in a Statement of Affairs is:

Tools

Explanation:

The statement of affairs is a legal document that present the company assets and liabilities and it could be generated at the time when the bankruptcy is declared

Now the category of assets that contains zero in the column of free assets in the statement of affairs is tools

Therefore the same is to be considered

The per-unit standards for direct labor are 2 direct labor hours at \$15 per hour. If in producing 1800 units, the actual direct labor cost was \$48000 for 3000 direct labor hours worked, the total direct labor variance is: a. \$6000 unfavorable. b. \$1800 unfavorable. c. \$3750 unfavorable. d. \$6000 favorable.

The correct answer is D.

Explanation:

Giving the following information:

The per-unit standards for direct labor are 2 direct labor hours at \$15 per hour. If in producing 1800 units, the actual direct labor cost was \$48000 for 3000 direct labor hours worked.

We need to calculate the total direct labor variance, using two formulas:

Direct labor efficiency variance= (SQ - AQ)*standard rate

Direct labor efficiency variance= (1,800*2 - 3,000)*15= \$9,000 favorable

Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity

Direct labor rate variance= (15 - 48,000/3,000)*3,000= \$3,000 unfavorable

Total direct labor variance= 9,000 - 3,000= \$6,000 favorable

Of customers who register a complaint, ________. all will do business with the company again because they are unwilling to dedicate the effort required to find another vendor none will do business with the company again customers whose complaints are satisfactorily resolved are more likely to provide publicity than those who are dissatisfied the speed of resolution has no impact on the likelihood of repeat business some will do business with the company again if their complaint is resolved

Some will do business with the company again if their complaint is resolved.

Explanation:

In the current situations that surrounds marketing and different businesses, it is now inevitable for customers not to complain and at such can lead to loss of customer(s).

Complaints from a customer primarily highlights a problem, this ranges from problem with your product to employees or internal processes, and also by hearing these problems directly from your customers, you can investigate and improve to prevent further complaints in the future.

That is why it is said that some customers will likely do business with the company again if their complaint are been resolved.

some will do business with the company again if their complaint is resolved

Explanation:

Complaints are made by customers who are seeking better services from a business as regards it's products and services.

When complaints are resolved customers usually do business again with the company.

Customers who do not complain are those who notice the problem with the products or services offered and move to a competitor.

For a customer to make a complaint it means he is still loyal to the company but wants improvement in some area of product and services offering.

What role do individuals play in a capitalist system?

Explanation:

INCAPITALIST SYSTEM ,INDIVIDUALS ARE KEY BECAUSE THE GOVERMENT DOES NOT CONTROL ECONOMY .ALL ECONOMIC DECISIONS AND ACTIONS ARE CONTROLLED.......

CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below:Sales \$3,000,000Net operating income \$150,000Average operating assets \$750,000Consider each of the following requirements independently.Requirement 1:Compute the company's return on investment (ROI).Return on investment % ?Requirement 2:The entrepreneur who founded the company is convinced that sales will increase next year by 50% and that net operating income will increase by 200%, with no increase in average operating assets. What would be the company's ROI?Return on investment % ?Requirement 3:The chief financial officer of the company believes a more realistic scenario would be a \$1,000,000 increase in sales, requiring an \$250,000 increase in average operating assets, with a resulting \$200,000 increase in net operating income. What would be the company's ROI in this scenario?Return on investment %?

1) ROI= 20%

2) ROI=15%

3) ROI = 35%

Explanation:

ROI is the proportion of capital invested that is earned as net operating income. It calculated as

Return on Investment = Net income/Average operating asset

= 150,000/750,000 × 100 = 20%

2.

ROI with a 50% increase in sales and 200% increase in average assets

ROI = (150%× 150,000)/(200%× 750,000)× 100= 15%

3.

ROI wth a 1,000,000 increase in sales

ROI = ( 150,000+200,000)/(250,000+ 750,000)× 100=35%

1) ROI= 20%

2) ROI=15%

3) ROI = 35%

The company's ROI for the different scenarios were calculated to be 20%, 60% and 35% respectively.

### Explanation:

The Return on Investment (ROI) can be calculated by dividing the Net Operating Income by the Average Operating Assets and is typically expressed as a percentage. ROI = (Net Operating Income / Average Operating Assets) × 100

1. For Requirement 1, with a Net Operating Income of \$150,000 and Average Operating Assets of \$750,000, the ROI is (150000/750000) × 100 = 20%.

2. For Requirement 2, if sales and Net Operating Income increase by 50% and 200% respectively, with no increase in Average Operating Assets, the new Income becomes 150,000 * 3 (because of the 200% increase) = \$450,000. Therefore, the new ROI becomes (450000/750000) × 100 = 60%.

3. For Requirement 3, if sales increase by \$1,000,000, requiring an increase in Average Operating Assets by \$250,000, with a resulting \$200,000 increase in Net Operating Income, the new Net Operating Income becomes \$150,000 + \$200,000 = \$350,000 and the new Average Operating Assets becomes \$750,000 + \$250,000 = \$1,000,000. Therefore, the new ROI becomes (350000/1000000) × 100 = 35%.