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Sloan [31]
4 years ago
10

On October 29 of the current year, a company concluded that a customer's $4,400 account receivable was uncollectible and that th

e account should be written off. What effect will this write-off have on this company's net income and total assets assuming the allowance method is used to account for bad debts?
No effect on net income; no effect on total assets. T/F
Business
1 answer:
Nonamiya [84]4 years ago
3 0

Answer:

The answer is true

Explanation:

There will no effect on net income; no effect on total assets because an allowance method is used which means there was a provision for bad debts already effected.

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When you create a shape, additional
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Answer:

formatting or editing because that is where you can change how something is placed or appears in the document.

6 0
3 years ago
Each of the following items must be considered in preparing a statement of cash flows (indirect method) for Turbulent Indigo Inc
DanielleElmas [232]

Answer:

(a) Plant assets that had cost $20,000 6 years before and were being depreciated on a straight-line basis over 10 years with no estimated scrap value were sold for $5,300.

  • increases cash flows from investing activities

(b) During the year, 10,000 shares of common stock with a stated value of $10 a share were issued for $43 a share

  • increases cash flows from financing activities

(c) Uncollectible accounts receivable in the amount of $27,000 were written off against Allowance for Doubtful Accounts.

  • this corresponds to bad debt expense which is included in the income statement

(d) The company sustained a net loss for the year of $50,000. Depreciation amounted to $22,000, and a gain of $9,000 was realized on the sale of land for $39,000 cash.

  • the net loss and the gain on the sale of land decreases the cash flows from operating activities, while the depreciation expense increases it.
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(e) A 3-month U.S. Treasury bill was purchased for $100,000. The company uses a cash and cash equivalent basis for its cash flow statement.

  • not included in teh cash flow statements

(f) Patent amortization for the year was $20,000

  • increases cash flow from operating activities (in a similar way than depreciation)

(g) The company exchanged common stock for a 70% interest in Tabasco Co. for $900,000.

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(h) During the year, treasury stock costing $47,000 was purchased

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4 0
3 years ago
Rapida Inc. and Click Inc. are two companies that have been manufacturing typewriters for almost 30 years. Due to the reduced de
Oksana_A [137]

Answer:

The answer is: B) Competitive parity with each other.

Explanation:

Rapida Inc. and Click Inc. have competitive parity with each because they are both losing money and both have the same negative rate of return.  

Competitive parity happens when one company achieves standard or average results as compared to other similar company (or companies) in their industry.

4 0
3 years ago
As an owner of a Wendy's fast-food restaurant located near a large urban university, you need to analyze your customers and dete
MrRissso [65]

Answer:

<em>Behavioral Segmentation</em>

Explanation:

<em>The method of dividing the total market into fewer homogeneous groups based on consumer purchasing behavior is  known as behavioral segmentation</em>.

Businesses or corporations perform behavioral segmentation on the basis of  buying habits from consumers such as frequency of use, brand loyalty, required benefits etc.

4 0
3 years ago
Suppose that, in an attempt to combat severe inflation, the government decides to decrease the amount of money in circulation in
Free_Kalibri [48]

Answer:

This monetary policy the economy demand for goods and the services which lead to product prices.

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6 0
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