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lianna [129]
1 year ago
12

why is allowance for doubtful accounts credited, instead of accounts receivable, when recording the adjusting entry for bad debt

s? multiple choice question. allowance for doubtful accounts is not credited; accounts receivable is credited when recording the adjusting entry for bad debts. allowance for doubtful accounts is credited because if accounts receivable were credited, the assets would be overstated. allowance for doubtful accounts is credited because if accounts receivable were credited, the assets would be understated. accounts receivable consists of many customer accounts and thus cannot be credited unless it is known which specific customer is not going to pay.
Business
1 answer:
alukav5142 [94]1 year ago
7 0

The allowance for doubtful accounts credited, instead of accounts receivable when recording the adjusting entry for bad debts  Because accounts receivable is made up of numerous client accounts, it cannot be credited unless it is known which particular customer will not pay.

The provision for questionable accounts is referred to as a "counter asset" since it reduces the value of an asset, in this example, the accounts receivable. The compensation, often known as a doubtful account, is management's projection of the amount of accounts receivable that customers will not pay. Let's assume, using the aforementioned example, that on June 30 a business reports an accounts receivable debit balance of $1,000,000. The business predicts that $50,000 will not be converted into cash and expects some consumers won't be able to pay the full amount.

learn more about  doubtful account visit brainly.com/question/28944789

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Answer:

relaxation techniques

Explanation:

Many companies know a day teach employees relaxation techniques in order to counteract the effects of stressors. Such techniques can include breathing focus methods, Yoga, Tai Chi, Qigong, Mindfulness Meditation, etc. These all help relax both the body and mind to maintain a healthy balance. These relaxation techniques are extremely popular within the tech industry since many programmers and individuals in this industry work insanely long hours.

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3 years ago
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OverLord2011 [107]

Explanation:

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Its success and reputation have ensured the company the position of the most valuable company in the world by market capital.

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3 years ago
Tolton, Inc. is just shy of hitting its operating income target. The manager, K.T. Tolton, decides to purchase inferior material
mario62 [17]

Answer:

Net income increase - $4,890

Explanation:

The computation of the effect on net income is shown below:

= Number of pounds of inferior product × (standard price for the materials - inferior product price per pound)

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For determining the effect we took the difference of the prices and then multiply it with the number of pounds of the inferior product

6 0
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Alice is single and self-employed in 2019. Her net business profit on her Schedule C for the year is $150,000. What is her self-
JulijaS [17]

Answer:

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So, Alice’s net earnings from self-employment is her net profit from Schedule C of $150,000 x 92.35% = $138,525.

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Alice owes total self-employment tax of $19,790 ($15,773 + $4,017).

She is not subject to additional Medicare tax because her net earnings from self-employment do not exceed $200,000.

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