Answer:
Explanation:
Dec 31:
Debit Bad debts expense = 0.003 × $896000 = $2688
Credit Allowance for doubtful accounts = $2688
February 1:
Debit Allowance for doubtful accounts $448
Credit Accounts receivable—P. Park $448
June 5:
Debit Accounts receivable—P. Park $448
Credit Allowance for doubtful accounts $448
June 5:
Debit Cash $448
Credit Accounts receivable—P. Park $448
Answer: B. Loss of earnings from employment
Explanation:
The opportunity cost of choosing a course of action is the returns that you would have earned from choosing the next best action.
David was employed and yet decided to quit that job and start a business. The next best thing he could have been doing was working which means that the opportunity cost was the returns from working which was his salary.
In deciding to open up his own businesses, he had to forego the opportunity costs which meant that he lost the earnings from that his employment.
Having been asked by Arch to refund the excess taxes that
were subtracted from January 1 to march 11, when arch claimed only one
withholding allowance, I should inform Arch that I won’t be able to pay back
the over withheld taxes that were withheld before March 13 and that the correction
will have to be made when he documents his annual income tax return.
Answer:
b. 3,000 needed
d. None of the above
d. $30
Explanation:
The computation is shown below:
For borrowed amount
= Beginning cash balance + expected cash receipts - expected cash disbursements - minimum monthly cash balance
= $10,000 + $40,000 - $48,000 - $5,000
= -$3,000
The amount of interest expense incurred for January is NIL as the amount i.e borrowed is for the end month of January. Moreover, the interest expense is paid on the month of February
And for the interest paid in February is
= $3,000 × 1%
= $30
