Retained Earnings = $86,000
Accounting Equation…Assets= Liabilities + Owners Equity
Assets (Cash, acct rec, equipment, building, land) = $421,000
Liabilities (Notes payable, accounts payable)= $260,000
Equity (capital stock) = $75,000
Liabilities + Equity= $335,000
Retained Earnings flows into equity
$421,000-$335,000= $86,000
$335,000+86,000= $421,000
So the equation balances.
Answer:
Under the allowance method writing of uncollectible account will only affect Balance sheet accounts
Explanation:
Uncollectibles when write of under allowance method will create reduce account receivable one side and also results in reduction of allowance for receivable on other side created previously, thus having impact only on balance sheet:
Entry will be:
Dr: Allowance for Doubtful Debts (Balance Sheet Item)
Cr: Account Receivable (Balance Sheet Item)
Answer:
E = mc2. It's the world's most famous equation, but what does it really mean? "Energy equals mass times the speed of light squared." On the most basic level, the equation says that energy and mass (matter) are interchangeable; they are different forms of the same thing.
Explanation:
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Answer:
The balance of allowance for doubtful accounts is $ 1,880
Explanation:
Computation of balance in Allowance for Bad Debts
Total credit sales $ 47 comma 000
Estimated bad debts as a % of sales 4 %
Balance of Allowance for Doubtful accounts $ 1,880
The balance is based on a % to credit sales basis. The bad debts expense for the year considers the balance in the allowance for doubtful accounts and the accounting entry is an adjustment amount.
