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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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The general ledger shows a balance of $ 66 comma 200 in the Merchandise Inventory account at the end of the period. The physical

madam [21]

Answer:

The adjusting entry includes a debit to Cost of Goods Sold and a credit to Merchandise Inventory for $3,200

Explanation:

Perpetual inventory is a method of accounting for inventory that records the sale or purchase of inventory immediately

The adjusting entry is calculated by subtracting the physical inventory account from the merchandise inventory account

Given

Physical Inventory Account= $63,000

Merchandise Inventory Account= $66200

Adjusting Entry = Merchandise Inventory Account - Physical Inventory Account

Adjusting Entry = $66,200 - $63,000

Adjusting Entry = $3200

6 0

3 years ago

. The start of noncritical activities are delayed beyond their earliest start times (but not beyond their latest start times) in

ozzi

The correct answer is D) maintain a uniform level of required resources.

The start of noncritical activities is delayed beyond their earliest start times (but not beyond their latest start times) in order to maintain a uniform level of required resources.

That is why companies have to establish their priorities and identify the main activities that must be accomplished on time, the people responsible to accomplish the activity, and the resources needed to successfully do so. Noncritical activities can be delayed up to a point, but the critical activities have to be followed according to the schedule.

7 0

2 years ago

When producers would have been willing to accept lower prices at various quantities produced than the market clearing price, the

krek1111 [17]

<span>When producers would have been willing to accept lower prices at various quantities produced than the market clearing price, the differences are called?</span><span>
PRODUCER SURPLUSE</span>

8 0

3 years ago

Greenwood Motels has filed a petition for bankruptcy but hopes to continue its operations both during and after the bankruptcy p

xxMikexx [17]

Answer:

The correct answer is letter "E": Reorganization.

Explanation:

A company reorganization takes place in front of the need for changing operating activities that are not bringing any profit to the organization or whose profit is minimal that it would be convenient to stop those processes. In some cases, reorganizations take place even when the firm has filed for bankruptcy.

Under those circumstances, the objective of the entity is to be forgiven for not meeting its payment obligations for a certain period while restructuring its operations to keep the business up and running.

5 0

3 years ago

Shirley’s and Son have a debt-equity ratio of .60 and a tax rate of 35 percent. The firm does not issue preferred stock. The cos

ikadub [295]

Answer:

d. 8.2%

Explanation:

The computation of the WACC is shown below:

= Weightage of debt × cost of debt × ( 1- tax rate) + (Weightage of common stock) × (cost of common stock)

where,

Weighted of debt = Debt ÷ total firm

= (0.60 ÷ 1.60)

= 0.375

And, the weighted of common stock = (Common stock ÷ total firm)

= 1 ÷ 1.60

= 0.625

The total firm is

= 0.60 + 1

= 1.60

Now put these values to the above formula

So, the value would equal to

= (0.375 × 8%) × ( 1 - 35%) + (0.625 × 10%)

= 1.95% + 6.25%

= 8.20%

8 0

3 years ago