1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Nina [5.8K]
3 years ago
5

At December 31, 2017, Sorrento Inc. estimated bad debts as 3% of the outstanding balance of Accounts Receivable. At December 31,

2018, Sorrento determined that it should increase its estimate to 6.5%. This change is handled on a:
Business
1 answer:
Andreyy893 years ago
5 0

Answer:

Prospective basis.

Explanation:

It has been given that the estimated bed debts are 3% in the year 2017 while in the year 2018, this bed debt will increase to 6.5%.  

Changes in regular estimates are part of a continuous improvement process. In many processes retrospective adjustment is interdicted.

Companies can record potential changes in estimates every year.

You might be interested in
Which of the following is not an example of an external failure cost? Warranty claims Handling complaints Loss of customer goodw
babymother [125]

Answer:

An example of external failure cost is:

Scrap and rework during production

Explanation:

External failure cost is the concept used in the finance, business, and management sciences to qualify the loss of a business after a product is sold. Examples involve lawsuits, legal fees, returns, etc. Now, the argument behind the answer is that warranty claims on handling are not part of the company, but the carrier and the retailer company. but scrap and rework during production is an external failure cost because after the production and selling scrap and rework during production will remain.

6 0
3 years ago
The following is a partial year-end adjusted trial balance. Account Title Debits Credits Sales revenue 300,000 Loss on sale of i
Varvara68 [4.7K]

Answer:

Operating income    75,000

EBT                            57,000

Net income ncome  34,200

Explanation:

Sales revenue       300,000

Cost of goods sold (160,000)

G&A expenses         (40,000)

Selling expenses   <u>   (25,000)  </u>

Operating income    75,000

loss on sale              (22,000)

interest revenue          4,000

EBT                            57,000

income tax expense

57,000 x 40% =        (22,800)

Net income ncome  34,200

5 0
3 years ago
Many young people must do which of the following in order to acquire job training?
bekas [8.4K]

Answer:

The answer is D

Explanation:

In order to achieve your goals one will want to read about there chosen job.

7 0
3 years ago
Listening to employee suggestions, gaining support for organizational objectives, and fostering an atmosphere of teamwork are al
Archy [21]

Answer:

Interpersonal and communication skills

7 0
3 years ago
Hank’s Tax Planning Service bought computer equipment for $19,200 on January 1, 2012. It has an estimated useful life of 4 years
Olegator [25]

Answer:

2. $3600

Explanation:

The computation of the depreciation expense under the Straight-line method: is shown below:

= (Purchase value of computer equipment - residual value) ÷ (estimated useful life)

= ($19,200 - $0) ÷ (4 years)

= ($19,200) ÷ (4 years)  

= $4,800

The depreciation that is calculated above is on yearly basis. But on monthly basis, the depreciation should be calculated from January 1, 2012 to September 30, 2012 i.e for 9 months

So, the depreciation would be

=  $4,800 × 9 months ÷ 12 months

= $3,600

We assume the deprecation is calculated on the straight-line method

3 0
3 years ago
Other questions:
  • To maintain good citizenship as a company and to make a fair profit on current operations are examples of _____. values
    9·1 answer
  • Suppose you are the owner of a picture frame store and your current fixed costs total $50,000 (real estate taxes, interest on a
    15·1 answer
  • Dewayne Gibbons of Burger King decided to introduce a new sliced chicken sandwich without consulting any of his subordinates or
    15·1 answer
  • The purpose of advertising is _____. to convince consumers that they can benefit from a product or service to entertain consumer
    7·1 answer
  • When a company sponsors motor sports and other​ action-oriented events, it is utilizing the​ ________ mode of communication from
    6·1 answer
  • Consider four different stocks, all of which have a required return of 15 percent and a most recent dividend of $4.20 per share.
    14·1 answer
  • Beauty Products International happens to be located a few miles from a minimum security prison. To help released prisoners reint
    13·1 answer
  • On January 1, 2017, Ayayai Company purchased 8% bonds having a maturity value of $200,000, for $216,849.76. The bonds provide th
    8·1 answer
  • At December 31, 2017, Mallory, Inc., reported in its balance sheet a net loss of $12 million related to its postretirement benef
    9·1 answer
  • A wage increase of $3000 per year is most likely to increase the subjective well-being of people who currently earn ________ per
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!