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June 27, 2009

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Accounting Noob

Hey Naked Accountant,
Im in college and in accounting 201. My teacher is not very responsive. I learn online so.. I have a question that im stumped on. Please help.

At December 31 of the current year, a company reported the following: Totals sales for the current year: 780,000 includes 160.000 in cash sales. Accounts received balance at Dec 31, current year: 190,000. Bad debts written off during the current year: 6800. Balance of allowance for doubtful accounts at jan 1, current year:8,300. Prepare the necessary entries to record bad debts expense assuming this company's bad debts are estimated
A. 1.5% of credit sales
B. 5% of accounts receivable

Thanks
Accounting noob

michal farrell

My husband and I own an ice cream shop for 8 years and just bought a Sandwich Shop 3 months ago because the ice cream business does not support us. We are 60 years old and in the coming months will not make any money. In fact more money will go out the door than comes in until March. We need to borrow money to stay afloat until the business's start making money again. My husband wants to borrow $275,ooo against a commercial property that we own to remodel our house. He doesn't know how much the sandwich shop will make in the future. Here is my question. Since we are not making that much and we never seem to have anything left over after a summer season, is it to risky to borrow so much? Worried in CA

The naked accountant

Here's my question - if money is tight and the ice cream shop is not supporting you and you just boughtba sandwich shop that will take several months to get going, why is he looking at borrowing money against a commercial property to remodel your house?
Seems like if money is tight with all these other things going on, the last thing you should spend money on is remodeling the house.
What am I missing?
The Naked Accountant

chanel J12 watches

if money is tight and the ice cream shop is not supporting you and you just boughtba sandwich shop that will take several months to get going, why is he looking at borrowing money against a commercial property to remodel your house?

michalf@comcast.net

Hi NA,
I have about $200,ooo to invest. Do you have an idea about an investment? Thanks michal

michalf@comcast.net

Well, I just posted that I have some $ but have no idea what to do with it. It is scary as I have always been poor. I don't want to be the person that blows the money unwisely.

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