I think this is a cooperative
Answer:
What is allowance for doubtful debt?
This represents management's estimate of the amount of accounts receivable that will not be paid by customers. They are amount owed by debtors, whose likelihood of collection is not certain.
1 Bad debts expense Dr ($18,000 × 0.25%) $45
To Allowance for Doubtful Accounts $45
(Being the bad debt expense is recorded)
2. Bad debts expense $45
($72 - $27)
To Allowance for Doubtful Accounts $45
(Being the bad debt expense is recorded)
3 Bad debts expense $105
($72 + $33)
To Allowance for Doubtful Accounts $105
(Being the bad debt expense is recorded)
4 Allowance for Doubtful Accounts $15
To Accounts Receivable $15
(Being the allowance for doubtful accounts is recorded)
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Explanation:
Answer:
$4
$1
$3
False
Explanation:
Tax on a case of beer = amount consumers pay after the tax has been levied - amount producers receive = $7 - $3 = $4
Burden of tax on consumers = amount consumers pay after the tax has been levied - amount consumers pay before tax was levied = $7 - $6 = $1
Burden of tax on producers = Tax charged - Burden of tax on consumers = $4 - $1 = $3
Answer:
e) sales should be recorded when the earnings process is virtually completed and the value of the sale can be determined.
Explanation:
The recognition principle states that sales should be recorded when the earnings process is virtually completed and the value of the sale can be determined. Recognition principle is one of the principle defined by the Generally Accepted Accounting Principles (GAAP).
Basically, it states that revenues are to be indicated on the income statement during the period when they are earned but not the period in which they are received or collected. The recognition principle is in accordance or in tandem with the accrual basis of accounting and not the cash basis of accounting.