Explanation:
the study or principles of the way money, business and industry are organized
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:
The correct answer is option b.
Explanation:
The nominal GDP is a measure of economic growth. It shows the quantity of final goods produced in an economy at the current market prices. It is not inflation adjusted and thus includes fluctuations in price level.
The real GDP on the other hand is exclusive of inflation. IT is a inflation adjusted measure and measures the growth in economic output at constant prices.
So, the basic difference between the two is that nominal GDP is based on current prices, while real GDP is based on constant prices.
the right one is A <span>:)</span>
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