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3 years ago

One might infer from a debit balance in allowance for doubtful accounts that

Business

1 answer:

shtirl [24]3 years ago

3 0

Answer:

The answer is:

More accounts have been written off than had been estimated

Explanation:

Doubtful debt or bad debt is an expense. According to the rule of accounting, debit increases an expense while debit decreases an expense.

So the debit balance balance in allowance for doubtful accounts tells us that there is an increase in expense which means that more accounts(bad debt) have been written off.

So we can infer from the debit balance that more accounts have been written off than had been estimated

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Fox Corp. failed to accrue warranty costs of $150,000 in its December 31, 20x2, financial statements. In addition, a $130,000 ch

faust18 [17]

Answer:

$150,000

Explanation:

$150,000

The failure to accrue warranty expense is an accounting error. It gives rise to a Prior period adjustment in the year of discovery (20x3).

Prior period adjustments are limited to corrections of errors affecting prior-year net income. They adjust the beginning balance of retained earnings in the year of correction.

The change in depreciation method is an estimate change, which is reported in earnings. It is not a Prior period adjustmen

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2 years ago

Dave manages a Shoney's restaurant. He is considering staying open later in the evening. For Dave, the variable costs associated

UNO [17]

Answer:

The correct option is C, rent on the restaurant building

Explanation:

The ingredients used in preparing food is variable cost as it varies with the number of plates of food prepared.

Hours worked by cooks determine how much they are paid since the longer they stay the higher the pay,hence it is a variable cost.

The rent on the restaurant building stay the same regardless of opening hours ,hence it is fixed not variable cost.

The energy costs varies with the number of opening hours, it is a variable cost.

The hours worked by servers determine how their take-home would be ,as a result it is a variable cost.

7 0

3 years ago

For each separate case, record the necessary adjusting entry. On July 1, Lopez Company paid $2,000 for six months of insurance c

Bas_tet [7]

Answer:

Adjusting Entries

December 31

Dr. Insurance Expense $2,000

Cr. Prepaid Insurance $2,000

December 31

Dr. Supplies Expense $8,200

Cr. Supplies account $8,200

Explanation:

On December 31, six months have been accrued and all of the amounts of prepaid insurance became accrued. hence it will be recorded as an expense.

Now calculate the supplies expense using the following formula

Supplies expense = Beginning Supplies + Purchases during the year - Ending Supplies = $6,600 + $2,800 - $1,200 = $8,200

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2 years ago

JOURNAL ENTRIES<br>cash withdrawn by the owner for private use Rs. 25000 <br>PLEASE HELP .

alexandr1967 [171]

Answer:

he withdrw 25,000

Explanation:

5 0

3 years ago

Read 2 more answers

How does a local water budget differ from the water budget of the whole earth?

Brrunno [24]

The way that a local water budget differs from the water budget of the whole Earth is that t<span>he local water budget is not balanced and the whole Earth is balanced.
Some societies in their local communities have more water than others, meaning that at the local level, these budgets are not equal, because some budgets are higher than the other ones. However, if you take a look at the budget for the whole planet, you will see that it is pretty balanced.
</span>

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3 years ago