debit to Bad Debt Expense for $3,800
<h3>What is
Bad Debt Expense ?</h3>
When a receivable is no longer collectible because a customer is unable to fulfil their obligation to pay an outstanding debt due to bankruptcy or other financial problems, a bad debt expense is recognised.
If a company with $2,000,000 in sales expects 2% of sales to be uncollectible, their bad debt expense would be $40,000 ($2,000,000 * 0.02). Consider a roofing company that agrees to replace a customer's roof on credit for $10,000.
Are bad debts a cost or a liability? Bad debts are an expense to the business rather than a liability because the amount expected to be received from the debtor is irrecoverable and has a negative impact on the books of accounts by reducing accounts receivable.
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Answer:
Option "B" is the correct answer to the following statement.
Explanation:
According to excess business loss rules, $500,000 is deductible to joint return and $250,000 deductible for a single taxpayer or single return.
In this situation, Max is a single taxpayer so, he would receive a maximum $250,000 loss deduction under excess business loss rules.
Therefore, Max's maximum deductible amount is $250,000.
Answer:
Cost of goods sold.
Explanation:
Equity method in accounting is the process by which profits and losses of a company are allocated on the basis of investments made in it. Take for example a parent company has a 40% stake in a subsidiary. When the subsidiary makes profit or loss the parent company recieves a share.
The investor is usually referred to as an associate or affiliate and usually own 20-50% of voting shares in the company. Therefore the equity method is used and not the cost method.
To account for unrecognised intra-entity profit a credit will be passed to cost of goods sold.
Answer:
$25
Explanation:
The computation of the price of the preferred stock is shown below:
Price of the preferred stock = Annual dividend ÷ expected rate of return
= $3 ÷ 12%
= $25 per share
Simply we divide the annual dividend by the expected rate of return so that the correct price of preferred stock can be computed
All other information which is given is not relevant. Hence, ignored it
This is the answer and the same is not provided in the given options
Answer:
B) Jobs must be designed to give employees the necessary latitude for making a variety of decisions.
Explanation:
The employee empowerment aims to provide resources and skills necessary for employees to have freedom and make their own decisions.
The organizational structure of a company will directly influence how employees are motivated or not to make certain decisions. In companies with a horizontal organizational structure, which is more flexible, there is an incentive for employees to make their decisions, which is a process that encourages innovation, engages employees, makes employment more motivating and valued, reduces response time of a decision and makes the decision-making process less bureaucratic and rigid.
