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Kruka [31]
1 year ago
7

On december 31 of the current year, techcom's unadjusted trial balance included the following items: accounts receivable, debit

balance of $107,250; allowance for doubtful accounts, credit balance of $1,900. what amount should be debited to bad debt expense, assuming 6% of outstanding accounts receivable as of december 31 of the current year, are estimated to be uncollectible
Business
1 answer:
torisob [31]1 year ago
7 0

$4,535  amount should be debited to bad debt expense.

<h3>What is bad debt expense?</h3>

When a receivable is no longer recoverable because a customer is unable to fulfill their responsibility to pay an outstanding debt owing to bankruptcy or other financial troubles, a bad debt expense is reported.

Big Store stops paying its debts and fails to reimburse Company XYZ for $100,000 in items. Because the company is not convinced that Big Store will ever pay, the $100,000 is classified as a bad debt.

Because it reduces the amount of an asset, in this case accounts receivable, an allowance for doubtful accounts is considered a "counter asset."

As the amount is not a liability, bad debts are an expense to the business.

To know more about bad debt expense follow the link:

brainly.com/question/18568784

#SPJ4

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The theory that higher-income taxpayers should be taxed less because their savings and investments stimulate the economy is know
Varvara68 [4.7K]

Answer:

The correct answer is: supply side economics.

Explanation:

Supply-side economics is a macroeconomic theory which advocates lowering of taxes and decrease in regulation to boost economic growth. It is directly in contrast to demand-side economics.  

This theory focuses on reducing taxes, decreasing regulations on producers and declining borrowing rates.  

This theory states that economic growth can be stimulated by boosting investments through tax reduction.

6 0
3 years ago
On October 1, 2018, Chief Corporation declared and issued a 10% stock dividend. Before this date, Chief had 80,000 shares of $5
iris [78.8K]

Answer:

correct option is a. decrease by $80,000

Explanation:

given data

stock dividend = 10%

common stock = $5

Chief = 80,000 shares

market value = $10

to find out

Chief's retained earnings will

solution

here retaining earning will be decrease by the maount of stock dividend that is

retaining earning = $80,000 × 10 % × $10

retaining earning = $80,000 × 0.10 × $10

retaining earning = $80000

so here correct option is a. decrease by $80,000

4 0
3 years ago
What are the profound and philosophical goals and benefits of a modern industrial society, according to Frederick Winslow Taylor
netineya [11]

Explanation:

The greatest objective and benefit of a modern industrial society according to Taylor was the transformation of management into a science, which should maintain the standardization of administrative processes in order to reduce production time and maintain the quality of work.

He developed the rational organization of work, a tool for researching human labor conditions, such as division of labor, specialization, standardization, supervision, salary incentives, etc., whose aim was to analyze how such factors influence productivity and the quality with which a worker perceives and performs his work.

The benefits of Taylor's management model were reduced working hours, perceived employee appreciation, reduced costs, improved organizational environment, etc.

5 0
3 years ago
Which of the following does not represent an asset of a company?
mariarad [96]

Answer:

4. Amounts owed to suppliers

Explanation:

We know that

Balance sheet comprises of assets, liabilities and the stockholder equity

The assets could be classified into current asset, fixed asset, and the intangible assets

While the liabilities are also classified into current liabilities and the long term liabilities  

The account receivable, equipment, supplies have come on the asset side of the balance sheet whereas the account payable or amount owed to suppliers have come on the liabilities side of the balance sheet

So, the most appropriate option is 4.

3 0
3 years ago
A company that is continually using up its cash is considered to have a high
juin [17]
The answer is C. Burn rate.
8 0
3 years ago
Read 2 more answers
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