The following information pertains to Lightning Inc., at the end of December:
Credit Sales $ 60,000
Accounts Payable 10,000
Accounts Receivable 7,000
Allowance for Uncollectible Accounts 400 credit
Cash Sales 20,000
Lightning uses the aging method and estimates it will not collect 2% of accounts receivable not yet due, 10% of receivables up to 30 days past due, and 40% of receivables greater than 30 days past due. The accounts receivable balance of $7,000 consists of $3,500 not yet due, $2,000 up to 30 days past due, and $1,500 greater than 30 days past due. What is the appropriate amount of Bad Debt Expense?
A) $400.
B) $470.
C) $870.
D) $1,270.
Answer: $470.
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Accounting
- When treasury stock is sold for more than the company originally paid to purchase the shares, the difference:
- A company currently has 200,000 shares issued and 190,000 shares outstanding. If the company purchases 20,000 shares of treasury stock, what amount of shares will be outstanding?
- The purchase of treasury stock can boost earnings per share by:
- Why would a corporation purchase its own stock?
- The corporation's own stock that has been issued and then bought back by the company is referred to as:
- What would be the impact on the accounting equation when a company acquires treasury stock?
- Which of the following is TRUE regarding the accounting for treasury stock?
- Which of the following statements about treasury stock transactions is true?
- When an investment is made in another corporation's common stock, what is the effect on total stockholders' equity?
- When treasury stock is acquired, what is the effect on total stockholders' equity?
- When treasury stock is resold at a price above cost:
- A company issued 1,000 shares of $1 par value preferred stock for $5 per share. What is true about the journal entry to record the issuance?
- Which of the following is not a potential feature of preferred stock?
- Which of the following financing alternatives has the highest preference for dividends/interest payments?
- Which of the following is the most likely to have voting rights?
- Which of the following has the lowest expected return to the investor?
- Which of the following has the highest expected return to the investor?
- Preferred stock:
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- Jade Jewelers issued 15,000 shares of $1 par value stock for $20 per share. What is true about the journal entry to record the issuance?
- Wright Inc. issued 20,000 shares of $1 par value common stock for $80,000. The journal entry to record this issuance includes a:
- When a company issues 25,000 shares of $1 par value common stock for $10 per share, the journal entry for this issuance would include:
- When a company issues 25,000 shares of $1 par value common stock for $10 per share, the journal entry for this issuance would include:
- If a company issues 1,000 shares of $1 par value common stock for $20 per share, which of the following accounts would be credited?
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