Answer: $4,811
Explanation:
Assuming 6% of outstanding accounts receivable at the end of the current year are estimated to be uncollectible that would be,
= 6% * 98,700
= $5,922
The Allowance for Doubtful Accounts acts as a buffer for the business when bad debts are incurred.
Bad debts are taken from the Allowance as the Allowance has already been removed from the Receivables.
In cases where Bad debts exceed the buffer in the Allowance for Doubtful Debt Account we take everything in it and the remaining bad debt amount is debited to Bad Debt expense.
That would be,
= 5,922 - 1,111
= $4,811
$4,811 is the amount that should be debited to Bad Debts Expense.
Answer:
The correct option is D,$402,000.
Explanation:
In determining the cash flow provided by operating activities,we need to adjust the net income for effects of non cash items reported.It is important to note that the reverse of the earlier treatment of the items is what is required now.For instance depreciation and amortization were deducted in income statement,for cash flow purposes we need to add both to net income.
Net income $315,000
add depreciation $90,000
amortization $15,000
loss on sale of equipment $9,000
less gain on sale of building($27000)
Cash flow from operations $402,000
The cash flow from operating activities as adjusted is $402,000.
Answer:
Bamboo can be processed into thin strips or sheet materials for bamboo plaiting , commonly known as bamboo strips. The processing procedures of bamboo strips include selecting materials , sawing bamboo, pruning, scraping, dividing, splitting, setting the width, thinning and chamfering.
Explanation:
Example: •Bamboo furniture
•Bamboo toys
•Bamboo wind chimes
•Bamboo lamps and lanterns
•Bamboo placements and coasters
Answer:
E) A sharp increase in its forecasted sales.
Explanation:
Haven developed a forecasting model to estimate its AFN for the upcoming year, F. Marston, Inc. would have an increase in the additional funds needed (AFN) due to the sharp increase in its forecasted sales.
An increase in sales translates to an increased cash flow and profits.
