At each calendar year-end, Mazie Supply Co. uses the percent of accounts receivable method to estimate bad debts. On December 31, 2013, it has outstanding accounts receivable of $55,000, and it estimates that 3% will be uncollectible
Prepare the adjusting entry to record bad debts expense for year 2013 under the assumption that the Allowance for Doubtful Accounts has
(a) a $935 credit balance before the adjustment.
(b) a $275 debit balance before the adjustment
Adjusting entries (all dated December 31, 2013).
BMX Company has one employee. FICA Social Security taxes are 6.20% of the first $110,100 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.80% and SUTA taxes are 2.90% of the first $7,000 paid to its employee.
Gross Pay through August Gross Pay for September
a. $ 5,000 $ 3,100
Prepare the employer's September 30 journal entry to record salary expense and its related payroll liabilities for this employee. The employee's federal income taxes withheld by the employer are $480.50 for this pay period. (Round your answers to 2 decimal places.)