After accounting for bad debt expense, the remaining amount in the allowance for doubtful accounts is $7,950.
<h3>
What is bad debt?</h3>
Bad debt, sometimes referred to as uncollectible accounts expense, is a sum of money owed to a creditor that is unlikely to be paid and for which the creditor is not willing to take action to collect for a variety of reasons, frequently due to the debtor not having the money to pay, for example due to a company going into liquidation or insolvency. Depending on accounting practices, regulatory considerations, and the institution provisioning, there are many technical definitions of what a bad debt is. Bank loans in the USA are referred to as "problem loans" if they are more than 90 days overdue. Accounting sources recommend deducting the entire amount of a bad debt from profit and loss or from a provision for bad debts as soon as it is anticipated.
To learn more about bad debt, visit:
brainly.com/question/28138659
#SPJ4
Answer:
Raise taxes
Explanation:
This will help reduce the amount of money in circulation because during recession money loses its value due to large amount of money in circulation
Creation and execution of goals by the management team, defined by available resources and existing conditions in and out of the company.
Answer:
d. A larger fixed assets turnover ratio and a larger gain on asset disposal
Explanation:
Accelerated depreciation is a method of depreciation whereby the book value of an asset is rapidly depreciated or reduced i.e at an accelerated rate.
This method usually minimizes taxable income in the initial years as a higher amount of depreciation is claimed.
Fixed assets turnover ratio refers to what percentage of net sales is attributable to an entity's fixed assets. It is expressed as:
Gain on sale of asset disposal = Sale value - Book Value
Book Value = Cost less accumulated depreciation till date
As can be seen, Average fixed assets balance would reduce thereby increasing fixed assets turnover ratio.
Similarly, due to higher depreciation charged, Book Value would be comparatively less, which would lead to larger gain on assets disposal in the initial years.
