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.
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When economists refer to "demand," they are speaking of<u> a schedule of amounts of a product that buyers would purchase at alternative prices in a given time period.</u>
A non-profit organization has obtained a temporary daily on-sale license for a fundraiser. The individual in the organization that has to be RBS certified is anyone or staff who serves drinks.
<h3>What is Responsible beverage service?</h3>
Responsible beverage service (RBS) is the training given to individual who could be staff of an organization or owners of businesses that sell and serve alcohol.
The knowledge and skills needed to succeed in the business is given for legal requirements.
Therefore,
A non-profit organization has obtained a temporary daily on-sale license for a fundraiser. The individual in the organization that has to be RBS certified is anyone or staff who serves drinks.
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Answer:
$700,000
Explanation:
Data provided in the question:
Amount claimed in damages for loss of income = $200,000
Amount claimed for emotional harm = $300,000
Amount claimed in punitive damages = $500,000
Amount for which the claim is settled = $700,000
Now,
here in the given question, none of the damages is caused due to any physical personal injury.
Hence,
None of the amount received will be excluded from gross income.
Therefore,
Theresa must include in gross income is $700,000
