The answer is B. Franchising
Licensing also use a similiar Model. But The Difference is When you do a Franchising , The company that own the trademark will give as support to aid the franchise. They also make sure that each branches do not cannibalized each others' profit.
In a Licensing model, the company who own the trademark won't give you any support whatsoever.
Answer:
Journal Entry is as follows;
June 15
<em>DR</em> Accounts Payable <u>$1,000</u>
<em>CR</em> Cash <u>$400</u>
<em>CR</em> Notes Payable <u>$600</u>
Answer:
The total amount of past-due accounts receivable that were written off as uncollectible during the year were: $17,300
Explanation:
The amount of past-due accounts receivable that were written off as uncollectible during the year are calculated by following formula:
Past-due accounts receivable that were written off as uncollectible = The Allowance for Bad Debts account had a balance at the beginning of the year + Bad debts expense was recognized - The Allowance for Bad Debts account had a balance at the end of the year = $8,500 + $16,000 - $7,200 = $17,300