The Adjustment entry to record the estimated bad debts include debit to Bad Debt Expense of $900 and credit to Allowance for Doubtful Accounts of $900. Thus 2nd and 5th options are correct.
<h3>What is Bad debt?</h3>
Bad Debt refers to the amount of loan which cannot be recovered. It is an outstanding balance which is irrecoverable. Thus in simply words it means the amount which will not be paid by the customer.
According to the given question, The credit balance is $100 in Allowance for Doubtful Accounts.
The credit sales method a specific percentage of credit sales represent bad debts of the previous period. Thus the difference amount comes under Allowance for Doubtful Accounts.
Journal Entry for the estimated bad debts is as follows:
DR. BAD DEBT EXPENSE $900
To CR. ALLOWANCE FOR DOUBTFUL ACCOUNTS $900
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Answer:
An offer is made on a property listed with broker Green for $93,000. The offer is for $91,000 and the buyer will be obtaining FHA financing. The appraisal comes in at $88,000. The recourse which the buyer have is:
- The buyer may get an FHA loan provided the difference between the appraised price is paid in cash.
Explanation:
- FHA stands for Federal Housing Authority. The FHA loan helps the buyer to get the home and it is a mortgage that is issued by the approved lender of the FHA.
- The benefit of this loan is that these loans require a lower minimum down payments and credit scores as compared to other conventional loans.
- In our case, the buyer will get the the financing from FHA to cover the difference of money between appraised price and actual price of the property.
Convert Hours per shift into total days worked for a week then convert it into total 365 - Days working + Hourly Pay
Answer:
a. Unity of direction
Explanation:
Unity of direction: In this principle, the direction of work is given by the higher authority with a view to achieving the organizational objective.
Division of work: In this principle, the work is divided between many subordinates/ employees, so that the task should be done in proper time and in an efficient & effective manner.
Scalar chain: This scalar chain represents the rank from high authority to low authority in a straight line so that proper communication/ cooperation can be done without any misunderstanding.
Unity of command: In this principle, the employees are responsible for only one person/ one supervisor/ one commander.
In the given scenario, the unity of direction principle applies as the board of directors wants to establish an independent business so that each domain objective can be achieved so that it becomes to accomplish the organizational objective.
