Kinsler Company Uses the Percentage-Of-Receivables Method for Recording Bad Debt

question 177

Short Answer

Kinsler Company uses the percentage-of-receivables method for recording bad debt expense.The Accounts Receivable balance is $250,000 and credit sales are $1,000,000.Management estimates that 6% of accounts receivable will be uncollectible.What adjusting entry will Kinsler Company make if the Allowance for Doubtful Accounts has a credit balance of $2,500 before adjustment

Recognize the components of high-quality after-school programs.

Understand the long-term effects of physical punishment and alternative discipline strategies.

Acknowledge the challenges and outcomes associated with poverty on children's development.

Understand the dynamics and outcomes of adoptive, stepfamilies, and traditional families.

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Definitions:

Marginal External Costs

The additional cost imposed on third parties not involved in a transaction or decision, for each additional unit produced or consumed.

Peach Canners

Peach canners are production facilities or workers involved in preserving peaches by canning them, which involves processing, sealing in an airtight container, and sterilizing to extend shelf life.

Market Efficiency

The extent to which market prices fully reflect all available information, making it impossible to consistently achieve higher returns.

Emissions

The release or discharge of substances (like gases or pollutants) into the environment, often from industrial or vehicular sources.