1) C
2)B
3) A Hoped this helped you!
Answer:
Yes, because they lead people to make poor decisions.
Explanation:
Answer:
33%
Explanation:
The gross profit percentage is also known as the gross margin which is the ratio of the gross profit to sales. it shows the amount of gross profit earned per $1 of revenue made.
The gross profit is the difference between the sales and the cost of goods sold.
Gross profit for 2016
= $62,000,000 - $41,540,000
= $20,460,000
Gross profit percentage
= $20,460,000
/$62,000,000
= 0.33
= 33%
Answer:
c. $24,500
Explanation:
The allowance for doubtful accounts is a contra-asset account that records the amount of receivables expected to be uncollectiblea, makes a reduction of the total amount of accounts receivable appearing on a company’s balance sheet. There are two way to estimate uncollectible accounts: the percentage of sales method and the accounts receivable aging method.
ABC Company uses the percentage of sales method - application a flat percentage to the total amount of net credit sales for the period.
Estimated uncollectible = 3% x $750,000 = $22,500
The company establishes an allowance for doubtful accounts for $22,500 while simultaneously reporting $22,500 in bad debt expense.
Before adjusting on December 31, 2004, the Allowance for Doubtful Accounts had a credit balance of $2,000.
The balance in the allowance for doubtful accounts after adjustment is $22,500 + $2,000 = $24,500
