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1 year ago

4)which of the following is correct when bad debt expense is recorded at year-end? b) net accounts receivable will decrease.

Business

1 answer:

fiasKO [112]1 year ago

5 0

Bad debt expense is an operating expense. An increase in operating expenses decreases income from operations.

When a receivable is no longer collectible as a result of a customer's inability to pay an outstanding debt due to bankruptcy or other financial issues, a bad debt expense is recorded. Companies that offer credit to their customers record bad debts as an allowance for doubtful accounts, also referred to as a provision for credit losses, on their balance sheet.

The basic idea behind bad debt expense is the same as that behind all accounting principles: it enables businesses to completely and accurately report their financial position. Almost every business will encounter a customer who is unable to pay at some point, and they will need to record a bad debt expense.

Learn more about bad debt here:

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Causes of corruption?

gizmo_the_mogwai [7]

Answer:

Personal greed, Decline of personal ethical sensitivity, the size and structure of governments, economic freedom/openness of economy, Cultural environments that condone corruption, Lack of transparency, Slow judicial processes, etc.

Explanation:

7 0

3 years ago

Read 2 more answers

Sidewinder, Inc., has sales of $634,000, costs of $328,000, depreciation expense of $73,000, interest expense of $38,000, and a

Mazyrski [523]

Answer:

$154,050

Explanation:

The computation of the net income for the firm is shown below:

Sales $634,000

Less: costs -$328,000

Less: depreciation -$73,000

EBIT -$233,000

Less: interest -$38,000

EBT 195,000

Less: tax(195,000 × 21%) -$40,950

Net income $154,050

We simply deduct all expenses ,interest and taxes from the sales revenue so that the net income could come and the same is to be considered

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3 years ago

The slope of the demand for loanable funds curve represents the...

USPshnik [31]

Answer: c. negative relation between the real interest rate and saving.

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Therefore, we can say that the demand is negative when interest rates rise, since this retracts the economy and decreases the savings and thus the money available to lend.

7 0

3 years ago

Amberjack Company is trying to decide on an allocation base to use to assign manufacturing overhead to jobs. The company has alw

svetoff [14.1K]

Answer:

Results are below.

Explanation:

Giving the following information:

Estimated Value Actual Value

Manufacturing overhead cost $732,000 $842,000

Direct labor hours 14,640 hours 16,600 hours

To calculate the predetermined manufacturing overhead rate we need to use the following formula:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 732,000 / 14,640

Predetermined manufacturing overhead rate= $50 per direct labor hour

Now, we can allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 50*16,600

Allocated MOH= $830,000

Finally, the over/under allocation:

Under/over applied overhead= real overhead - allocated overhead

Under/over applied overhead= 842,000 - 830,000

Underapplied overhead= $12,000

8 0

3 years ago

During the year, Walt who is self-employed travels from Seattle to Tokyo, Japan, on business. His time was spent as follows: two

aleksklad [387]

Answer:

d.$5,500.

Explanation:

The computation of the deductible expense is shown below:

= Airfare + lodging + 50% of meals

= $3,000 + $2,000 + 50% of $1,000

= $3,000 + $2,000 + $500

= $5,500

hence, the deductible expense is $5,500

Here we take 100% of airfare & lodging but we took 50% for the meals

hence, the option d is correct

6 0

3 years ago