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andrezito [222]
3 years ago
12

1. When you spend more than you make, you have a(n) _____?

Business
2 answers:
Y_Kistochka [10]3 years ago
7 0
I think the correct answer from the choices listed above is option A. When you spend more than you make, you have a deficit. <span>In economics, a </span>deficit is<span> an excess of expenditures over revenue in a given time period. Hope this answers the question. Have a nice day.</span>
Alik [6]3 years ago
3 0

When you spend more than you make, you have a deficit. Correct answer: A Deficit occurs when expenses exceed revenue, imports exceed exports, or liabilities exceed assets and it is an indicator of financial health. Surplus on the other hand is the opposite of deficit.

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Give two characteristics of a perfectly competitive market.
sergey [27]
1. a large number of buyers and sellers
2. an identical or a homogeneous product
7 0
3 years ago
At the beginning of 2021, Brad’s Heating &amp; Air (BHA) has a balance of $24,800 in accounts receivable. Because BHA is a priva
NISA [10]

Answer:

  • 3. Calculate bad debt expense for 2021 and 2022 under the allowance method and under the direct write-off method, prior to any adjusting entries.
  • 2021

Under the Allowance Method    

Dr Bad Debt Expense $ 5.960  

Cr Allowance for Uncollectible Accounts  $ 5.960

Under the Direct Write-Off Method    

There aren't movements of writen-off accounts.

  • 2022

In 2022, customers’ accounts totaling $6,800 are written off as uncollectible.

Under the Direct Write-Off Method    

Dr Bad Debt Expense $ 6.800    

Cr Accounts Receivable   $ 6.800  

Under the Allowance Method    

3. Calculate bad debt expense for 2022 under the allowance method  

Dr Bad Debt Expense $ 5.440  

Cr Allowance for Uncollectible Accounts  $ 5.440

Explanation:

  • Initial Balance  

Dr Accounts Receivable   $ 24.800

  • During 2021, install air conditioning systems on account  

Dr Accounts Receivable  $ 178.000  

Cr Sales  $ 178.000

  • During 2021, collect $173,000 from customers on account.    

Dr Cash $ 173.000  

Cr Accounts Receivable   $ 173.000

  • 3. At the end of 2021, estimate that uncollectible accounts total 20% of ending accounts receivable.    

Dr Bad Debt Expense $ 5.960  

Cr Allowance for Uncollectible Accounts  $ 5.960

  • FINAL Balance 2021  

Dr Accounts Receivable  $ 29.800  

Cr Allowance for Uncollectible Accounts  $ 5.960

  • 4. In 2022, customers’ accounts totaling $6,800 are written off as uncollectible. Under the Allowance Method  

Dr Allowance for Uncollectible Accounts $ 6.800  

Cr Accounts Receivable   $ 6.800

  • 4. In 2022, customers’ accounts totaling $6,800 are written off as uncollectible. Under the Direct Write-Off Method  

Dr Bad Debt Expense $ 6.800  

Cr Accounts Receivable   $ 6.800

  • Sub TOTAL Balance 2022  

Dr Accounts Receivable  $ 23.000  

Dr Allowance for Uncollectible Accounts  $ 840

  • 3. Calculate bad debt expense for 2022 under the allowance method  

Dr Bad Debt Expense $ 5.440  

Cr Allowance for Uncollectible Accounts  $ 5.440

  • FINAL Balance 2022  

Dr Accounts Receivable  $ 23.000  

Cr Allowance for Uncollectible Accounts  $ 4.600

If the company applies the allowance method, it means that the account Allowance for Uncollectible Accounts must show as balance the % of accounts receivables as CREDIT.

Because the company has a debit balance in that account it's necessary to register an entry that compensate the DEBIT value and reflect A CREDIT estimated as % of account receivable.

Bad accounts are those credits granted by the company and there is no possibility of being charged.

When customers buy products on credits but the company cannot collect the debt, then it's necessary to cancel the unpaid invoice as uncollectible.

One way is to directly cancel bad debts at the time it was decided that the credit is bad, the total amount reported as bad debt expenses negatively affect the income statement and the accounts receivable are reduced by the same amount, less assets

The other way is to determine a percentage of the total amount of accounts receivable as bad debts, there are many ways to analyze accounts receivable and calculate the value of bad debts.

When the company has the percentage of uncollectible accounts, the required journal entry is Bad Expenses (debit) with Reserve for Bad Accounts (credit)

At the time of cancellation, since the expenses were recognized before, we only use the Allowance for Uncollectible Accounts (Debit)  with accounts receivable (credit), with this we are recognizing the bad credit of the company.

5 0
3 years ago
Wildhorse Construction Company had a contract starting April 2021, to construct a $24900000 building that is expected to be comp
jek_recluse [69]

Answer:

The construction in process amount reported at December 2021 is $13,695,000

Explanation:

In this question, we are asked to state the amount the company will report construction in the process of.

Firstly, we calculate the profit = Total contract price - Expected costs of contract = $24,900,000-$22,900,000 = $2,000,000

The profit in percentage of cost is; 2,000,000/22,900,000 = 8.73%

The costs incurred in 2021 is $12,595,000

The proportionate profit = 12,595,000 * 8.73 = $1,100,000

The construction in process at December 2021 = Cost incurred + Proportionate profit = 12,595,000 + 1,100,000 = $13,695,000

3 0
3 years ago
Like many other marketing strategy specialists, Mike relies heavily on creativity and originality. Members of his team are selec
damaskus [11]

Answer:

<u>Brainstorming.</u>

Explanation:

The situation exposed in the question above is an example of brainstorming, which can be defined as a group dynamics technique where there is the generation of ideas for a given project.

This activity is developed with the main objective of exploring the creative and innovative capacity of an individual or a group, stimulating the team's creativity, collecting ideas and the maximum amount of information, visions and possibilities in order to achieve a determined objective.

8 0
3 years ago
A voip caller wishing to contact another sends an invite message to ________.
kolbaska11 [484]
There are three choices the caller's H.323 proxy server, the receiver's H.323 proxy server and the receiver directly but none of these choices are correct. So the answer in this question will be none of the above. It is hard to know where you would send the invite message so the answer is NONE.
4 0
3 years ago
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