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adoni [48]
3 years ago
12

The direct write-off method of accounting for bad debts uses an allowance account. uses a contra asset account. is the preferred

method under generally accepted accounting principles. does not require estimates of bad debt losses.
Business
1 answer:
jeyben [28]3 years ago
8 0

Answer:

The correct answer is letter "D": does not require estimates of bad debt losses.

Explanation:

There are mainly two approaches while recognizing bad debts (unpaid debts):  <em>the allowance method </em>and <em>the direct write-off method</em>. Using the allowance method the unpaid account receivable goes through a series of stages until it is recognized as a bad debt. There are no set criteria to do so. When the firm eventually recognizes and calculates the amount of a bad expense, it is recorded in an allowance account. The negative balance diminishes the company's revenue.

The direct write-off method does not generate any allowance account. The account receivable is simply written-off after the company determines the debt as uncollectible. Thus, there is no need to estimate bad debt losses using this approach.

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C&amp;A purchases fertilizer for its lawn-care business from a supplier who charges $30 per order and $50 per case. Each case co
Verdich [7]

Answer:

$1.5

Explanation:

Given:

Charges per order = $30

Charges per case = $50

1 case = 5 bags of fertilizers

Number of fertilizers bags needed per year = 2000 bags

Annual holding cost, C₀ = 30%

Now,

Annual demand for cases,  D = \frac{\textup{Number of fertilizers bags needed}}{\textup{Number of bags per case}}

= \frac{\textup{2000}}{\textup{5}}

= 400 cases

thus,

Annual unit holding cost per case, C_h = 30% of $50 i.e $15

Thus,

Economic Order quantity ( EOQ ) =\sqrt{\frac{2C_oD}{C_h}}

on substituting the respective values, we get

EOQ =\sqrt{\frac{2\times30\times400}{15}}

or

EOQ = 40

Now,

Annual ordering cost = Ordering cost × Number of orders

= C₀ × \frac{\textup{annual demand}}{\textup{EOQ}}

= $30 × \frac{\textup{400}}{\textup{40}}

= $300

Annual inventory holding cost

= Annual unit inventory holding cost × Average inventory

= C_h × \frac{\textup{EOQ}}{\textup{2}}

= $15 × \frac{\textup{40}}{\textup{2}}  

= $300

Now,

Sum of annual ordering and holding cost per case of fertilizer

= $300 + $300

= $600

Therefore,

Annual ordering and holding cost per case of fertiliser

= \frac{\textup{600}}{\textup{Annual demand}}

= \frac{\textup{600}}{\textup{400}}

= $1.5

7 0
3 years ago
Grading the performance of minority group members by using lower standards and a patronizing attitude is called
postnew [5]
In my opinion, it is called subtle discrimination. Unlike blatant discrimination, which consists in openly humiliating a member of a minority based on their personal traits, subtle discrimination is much more perfidious, as it is not always easy to point finger at it or to legally assess it. Sometimes, it even happens as a consequence of seemingly good intentions. For example, if I use lower standards to grade Afro-Americans in a class of mixed students, it still means I assume they are less capable or educated, even if I do it because I know that they had been oppressed and had historically had less chance to educate themselves.
8 0
3 years ago
The u.s. government may require that apparel imported into the united states should use u.s. cotton, or use a certain amount of
slavikrds [6]

The u.s. government may require that apparel imported into the united states should use u.s. cotton, or use a certain amount of American labor. this is an example of a Domestic content provision

<h3>What is Domestic content provision?</h3>
  • The Domestic content provision ("BAA," originally found at 41 U.S.C. 10a–10d, now found at 41 U.S.C. 8301–8305), passed by Congress in 1933 and signed by President Hoover on his final day in office (March 3, 1933), mandated that the U.S. government give preference to purchases of goods made in the United States.
  • Similar limitations are imposed by other federal laws on third-party acquisitions made with government money, such as highway, and transportation projects.
  • The "Domestic content provision," which went into effect 50 years after the "Domestic content provision," is not to be mistaken with the former. The latter is 49 U.S.C., 5323 (j), a provision of the Surface Transportation Assistance Act of 1982, and it only applies to procurements linked to mass transit that cost more than $100,000 and were at least partially funded by government funding.

To learn more about Domestic content provision with the given link

brainly.com/question/15869059

#SPJ4

8 0
1 year ago
On January 1, Year 1, Abbott Company granted 92,000 stock options to certain executives. The options are exercisable no sooner t
Lilit [14]

Answer:

The amount of Compensation expense to Year 1 is $153,333.

Explanation:

Stock options granted                                       92000

X Fair value on date of grant                          5

Total compensation expense                       460000

Years                                                                    3    

Compensation expense per year 1                       53333

Therefore, The amount of Compensation expense to Year 1 is $153,333.

3 0
3 years ago
In Chapter 7 bankruptcy, liquidation, A. all the debtors' debts are discharged. B. the debtor keeps their assets. C. the trustee
qaws [65]
<span>In Chapter 7 bankruptcy, liquidation, the trustee sells off the debtor's assets and pays creditors. A Chapter 7 bankruptcy often turns into a Chapter 13 which is based around selling debt off to pay creditors. Selling off the assets and liquidating them gives them cash on hand to pay off what needs to be paid. </span>
4 0
3 years ago
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