The adjusting entry that Sheridan Company will make if the Allowance for Doubtful Accounts has a credit balance of $2500 before adjustment is:
Debit Bad Debt Expense $10,000
Credit Allowance for Doubtful Accounts $10,000
Sheridan Company Adjusting Journal entry
Debit Bad Debt Expense $10,000
Credit Allowance for Doubtful Accounts $10,000
[($250,000 × 0.05) - $2,500]
[($12,500- $2,500)=$10,000]
(To record Allowance for Doubtful Accounts)
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Answer: Option C
Explanation: In simple words, critical dilemma refers to the confusions and problems that may arise and are pretty hard to solve.
While implementing fiscal policies in an economy the authorities must have proper information however the information takes time and cost to get collected and processed.
This situation is called information lag and is a critical dilemma as the individuals in authority have to decide whether to go for information processing and collecting or not.
Option (b) for a response. In order to keep the expenditure multiplier from exceeding 1, output must increase while consumption must decrease.
<h3>Spending multiplier: What does it tell you?</h3>
An economic indicator of the impact that changes in government spending and investment have on a nation's Gross Domestic Product is the expenditure multiplier, often known as the fiscal multiplier.
<h3>When the multiplier is negative, what does that mean?</h3>
The negative multiplier effect happens when a spending leak or initial withdrawal from the circular flow has further impacts and a larger final decline in real GDP.
<h3>Why does multiplier exceed 1?</h3>
The rise in the national product indicates a rise in national income. Consumption demand rises as a result, and businesses produce to satisfy it. As a result, the increase in investment is greater than the increase in national income and product. There is a multiplier effect that exceeds one.
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Answer:
It is said that the country imposes a tariff on the foreign produced goods due to this implementation of tariff the demand for the domestic goods is also high, as a result the exports demand rises. Due to this effect the real exchange rate rises from E1 to E2 and the equilibrium point increased from point one to another.
Answer:
D. Worksheet is a tool used in preparing adjusting entries and the financial statements, and the use of worksheet is optional
Explanation:
The correct option D because worksheet is used to adjust value and prepare the financial statements and it is not mandatory to use.
The post-closing trial balance might show that accounting equation is balanced but not every time. It only ensure the total of debits balances and total of credits balances are equal. All transaction might not correctly journalized.
The accounting cycle starts with analyzing the business transactions and ends with the preparation of a Financial Statements.
Property, Plant and Equipment are our physical, tangible and long term assets which include all land, office, building, Machinery, equipment and vehicles.
