Using the direct write-off method, Hanes will record the write-off of this account by <u>debiting</u> the Bad Debts Expense account.
<h3>What is the direct write-off method?</h3>
The direct write-off method is one of the methods for writing off uncollectible accounts.
With the direct write-off method, the bad debts expense account is <u>debited</u> while the accounts receivable are <u>credite</u>d.
Thus, using the direct write-off method, Hanes will record the write-off of this account by <u>debiting</u> the Bad Debts Expense account.
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True I’m pretty sure that’s right
Answer:
James will lose money, since his earnings will be lower than the interest that he must pay.
Explanation:
The capitalization (cap) rate is a ratio calculated by dividing the net operating income over the property asset value.
For example, if James is purchasing the property at $100,000, his net earning will be $7,500 per year (cap rate of 7.5%), but he will have to $8,000 in interests for the property. The interests are higher than the earnings, therefore the leverage is negative.
Answer:
$30,800
Explanation:
Dr Work in progress 30,800
Cr Wages payable 30,800
Direct labour hours × Per direct labour hour
Job 456
580×15 = 8700
Job 777
850×26= 22100
22,100 + 8,700 = 30,800