Answer:
(C)
Explanation:
Premiums is something given as a reward, prize, or incentive.
In this case, the college entertainers offered an incentive or reward (premiums) to the people who came to see them perform.
The shirts would encourage the people who came to see them perform to be present some other time.
For example, a grocery store may give free sweets to children who accompany their parents to the store.
The required journal entries are:
Income statement:
Operating expense:
Bad debts expense-----------------------$1,125
Balance sheet:
Current assets:
Accounts receivable $29,300
Less: allowance for doubtful accounts ($325)
Net realizable value $28,975
Where,
Ending accounts receivable = Beginning balance + Credit sales - Cash collection - Written-off
= $16,000 + $75,000 - $60,000 - $1,700
= $29,300
Ending allowance for doubtful accounts = beginning balance + Bad debts expense - written-off
= $900 + $1,125 - $1,700
= $325
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Answer:
Businesses use three types of profit to examine different areas of their companies.
1. Gross profit subtracts variable costs to revenue for each product line. Variable costs are only those needed to produce each product, like assembly workers, materials, and fuel. It doesn't include fixed costs, like plants, equipment, and the human resources department. Companies compare product lines to see which is most profitable.
2. Operating profit includes both variable and fixed costs. Since it doesn't include certain financial costs, it's also commonly called EBITA. That stands for Earnings Before Interest, Tax, Depreciation, and Amortization. It's the most commonly used, especially for service companies that don't have products.
3. Net profit includes all costs. It's the most accurate representation of how much money the business is making. On the other hand, it may be misleading. For example, if the company generates a lot of cash, and it's invested in a rising stock market, it may look like it's doing well. But it might just have a good finance department, and not be making money on its core products.
Explanation:
Answer:
the state of being responsible for something, especially by law.
Explanation:
So if you're a liability to someone they are responsible for you. Usually a bad thing like your dead weight.