The entry to record the amount of estimated uncollectible accounts includes a debit to Uncollectible Accounts Expense

Question

The entry to record the amount of estimated uncollectible accounts includes a debit to Uncollectible Accounts Expense and a credit to: A Sales B. Interest Expense C. Accounts Receivable D. Allowance for Uncollectible Accounts Resel Selection The Wildhorse Acres Inn is trying to determine its break-even point during its off-peak season. The Inn hos 50 rooms that it rents at $90 a night. Operating costs are as follows: Salaries $5,000 per month Utilities $1,000 per month Depreciation $1,200 per month Maintenance $360 per month Mald service $24 per room Other costs $48 per room Determine the Inn's break-even point in number of rented rooma per month. Break-even point rooms Determine the Inn's break-even point in dollars.

Help In Homework · Accepted Answer

1. the entry to record the amount of estimated uncollectible accounts include a debit to uncollectible accounts expense and a credit to:- d. allowance for unclollectible accounts 2. Contribution margin: = $90 - $24 - $48 = $18 Contribution margin ratio: = $18 / $90 = 20% 1. Breakeven point in rooms: = ($5,000 + $1,000 + $1,200 + $360) / $18 = 420 rooms 2. Breakeven point in dollars = ($5,000 + $1,000 + $1,200 + $360) / 20% = $37,800

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The entry to record the amount of estimated uncollectible accounts includes a debit to Uncollectible Accounts Expense and a credit to: A Sales B

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