Since 1969, the economic growth in Hongkong has been greater than in the United States. Although both have been showing improvement and development when it comes to economic growth, Hongkong gave their best by devoting a bigger fraction of its resources to accumulating capital. Hongkong's production possibilities then have expanded more quickly. By 2009, the performance of Hongkong's economy has been promising for statistics states that the production possibilities of per person in the said country had reached 94 percent than in the United States. Another proof that Hongkong has been doing good is, it is considered as one of the world's leading financial centers. It boasts of its low taxation, almost free port trade and well established international financial market through its service-oriented economy.
1. Make a financial plan.
2. Pay off any high interest debts.
3. Start saving and investing as soon as you’ve paid off your debts.
Answer:
Net loss = (6,700)
Explanation:
According to the scenario, computation of the given data are as follow:-
Income Statement
Particular Amount ($)
Revenue from Service 62,100
Revenue from Rent 8,500
Less-Salaries and wages expenses (50,700)
Less-Utilities expenses (22,600)
Less-Depreciation expenses (4,000)
Net loss (6,700)
Answer:
The ending balance in the Allowance for Bad Debts is 20,500 CREDIT
Explanation:
The ending balance of Allowance for bad debts would be the 2.5% of sales
The adjustment is made to get the allowance for Bad Debt match the estimate uncollectible ammounts.
Notice it state <em>"company adjusted for bad debt expense"</em>
This means<u> it debit this account as much as it needed to be</u> to make allowance match the estimate allowance.
The write-off are transaction durign the period. They are irrelevant
So the ending balance is:
<em>2.5% of credit sales of 820,000 = $20,500</em>
It is important to remember that <u>Allowance is a counter-asset account</u>. His <em>normal balance is credit</em>, so the<u> final balance is credit.</u>
