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slava [35]
3 years ago
13

Under the direct write-off method of uncollectible accounts, the effect on the accounting equation of writing off a customer's a

ccount is: a.an increase in liabilities and a decrease in stockholders' equity (expense) b.an increase in assets and an increase in liabilities c.a decrease in assets and a decrease in stockholders' equity (expense) d.a decrease in assets and a decrease in liabilities
Business
1 answer:
FrozenT [24]3 years ago
7 0

Answer:

Correct option is (C)

Explanation:

Under direct write off method, if a particular accounts receivable is written off, then no counter asset is created. Bad debt expense is debited and accounts receivable is credited.

As bad debt expense is reported on the debit side of income statement, profit reduces by the same amount thereby decreasing stockholder's equity. Since accounts receivable is credited, accounts receivable is decreased by the same amount in the balance sheet, thereby decreasing assets.

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One advantage of proprietary software versus off-the-shelf software is that _____.
Serjik [45]

(C) the software provides a company a competitive advantage by solving problems in a unique manner

Proprietary software is a special software designed for a specific application and owned by the organization, firm or individual that uses it. Proprietary software can give an organization leverage over competitors, by solving problems in a unique manner, however, off-the-shelf software is mass produced software used by several other organizations, thereby giving other organizations simple and identical problem-solving technique.


6 0
3 years ago
Read 2 more answers
A key use of a customer survey used in the operations consulting phase of problem definition is customer loyalty analysis. True
Marina86 [1]

Answer: True

Explanation: The operations consulting is the evaluation of the operational situation of the company, this helps us to improve the processes. If a customer survey is carried out, for example, regarding the quality of the products and the result is that raw materials or prices must be modified, if corrective measures are made, it is possible that customer satisfaction increases and therefore the fidelity.

8 0
3 years ago
Nash's Trading Post, LLC uses the percentage of receivables basis to record bad debt expense and concludes that 3% of accounts r
skelet666 [1.2K]

Answer:

(a) Prepare the adjusting journal entry to record bad debt expense for the year with Allowance for Doubtful Account of $ 3,041

Dr Bad Debt Expenses                      $10,150

  Cr Allowance for doubtful debt      $10,150

(b) Prepare the adjusting journal entry to record bad debt expense for the year with Allowance for Doubtful Account of $ 918

Dr Bad Debt Expenses                      $14,109

  Cr Allowance for doubtful debt      $14,109

Explanation:

The Allowance for Doubtful Account will have the Balance of : 439,700 x 3% = $13,191

(a): Bad Debt Expenses needs to be recorded: 13,191 - 3,041 = $10,150

(b): Bad Debt Expenses needs to be recorded: 13,191 + 918 = $14,109

3 0
3 years ago
Managers should act in shareholders' interests because shareholders have ___________ priority in receiving their claims.A. TopB.
Cloud [144]

Answer:

Regarding to Claim to income, the correct answer would be C-Bottom

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Shareholders can be preferred or common and they have differents claims to income.  Generally, preferred stock will be given preference in assets to common assets in case of company liquidation, nonetheless both will fall behind bondholders if asset distribution happen. If bankruptcy happen, common stock investors will receive any remaining funds after bondholders,  then creditors and preferred stockholders are paid. That's why these investors often receive nothing after a bankruptcy. Preferred stock also has the first right to receive dividends. In general, common stock shareholders will not receive dividends until it is paid out to preferred shareholders, and that happen because they are at the bottom of the pyramid.

3 0
3 years ago
What does difficult to find finance mean?
WARRIOR [948]

a condition or state of affairs almost beyond one's ability to deal with and requiring great effort to bear or overcome. "grappling with financial difficulties"

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3 years ago
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