Answer:
The write-off to be approved by two employees
Explanation:
Allowance Method
This method is capitalizes on matching principle. The key work is to record bad debts expense in the same period as the sales revenue.
Direct Write-off Method
This is simply known as when an accounts receivable are written off and bad debts expense is recorded when the company determines that it will not be able to collect from a specific customer.
Method used
Record bad debts expense and reduce accounts receivable
Debit: Bad Debts Expense
Credit: Accounts Receivable
Recovery method
Step 1: Reverse earlier write off
Debit: Accounts Receivable
Credit: Bad Debts Expense
Allowance For Bad Debts Account
It is usually in a contra asset account, in relation to accounts receivable, that holds the estimated amount of uncollectible accounts. The account is said to limits the asset receivable in anticipation of uncollectible debts.
Because casual is an objective term and what constitutes "casual" attire may drastically differ by company
Tickets are things you use to go into theme parks
Answer:
TRUE
Explanation:
Arguments for the specific identification method are as follows:
(1)It provides an accurate and ideal matching of costs and revenues because the cost is specifically identified with the sales price.
(2)The method is realistic and objective since it adheres to the actual physical flow of goods rather than an artificial flow of costs.
(3)Inventory is valued at actual cost instead of an assumed cost.
Arguments against the specific identification method include the following:
(1)The cost of using it restricts its use to goods of high unit value.
(2)The method is impractical for manufacturing processes or cases in which units are com-mingled and identity lost.
(3)It allows an artificial determination of income by permitting arbitrary selection of the items to be sold from a homogeneous group.
(4)It may not be a meaningful method of assigning costs in periods of changing price levels
Answer:
Forecast of 2020 net earnings = $299.2 million.
Explanation:
Note:
a. See part a of the attached excel file for the calculations of the Historic Percent of Total Revenue.
b. See part b of the attached excel file for the Forecast of ADP’s 2020 income statement.
From part b of the attached excel file, we have:
Forecast of 2020 net earnings = $299.2 million.