Answer:
a) net income will increase
Explanation:
The business must record the Account Receivable (Debit – Asset increased) against de income for the Revenue (Credit – Equity increased). Then will record the loss for the Cost of Sold Goods (Debit – Equity decreased) against the exit of the sold goods (Credit – Asset – decreased). As the income (Revenue) will be larger than the loss (Cost of Sold Goods), the Net Income will be increased.
Answer:
Db Allowance for Doubtful Accounts_1200
Cr to Accounts Receivable_____________1200
Explanation:
When a specific customer's account is identified as uncollectible, the journal entry to write off the account is:
A debit to Allowance for Doubtful Accounts (to reduce the Allowance balance that was previously established)
A credit to Accounts Receivable (to remove the amount that will not be collected)
Answer:
27,440
Explanation:
Negotiated price 24,000
Installation of special shelving 1,100
Painting and lettering 900
Sales tax 1,440
24000 + 1100 + 900 + 1440 = 27440
Motor vehicle license and annual insurance policy are not a part of the actual cost. It is a part of some other things, eg upkeep of the truck
Maybe this can help you with that :0
Answer:
Explanation:
a. Current ratio = current assets/ current liability
= current assets= 2,300+5,700+3,500= 11,500
Current liability= 3,000+3700= 6,700
Current ratio = 11,500/3700
= 1.72
b. How much in current assets does Heart of Tennessee Telecom have for every dollar of current liabilities that it owes?
It has $1.72
