Answer:the adjustment to record bad debts for the period will require a
Debit on
Bad debt expenses for $ 12,670 and a credit To Allowance for doubtful accounts for $ 12,670
Explanation:
Account receivables for uncollectibles= $13,900
Allowance for Doubtful Accounts = credit balance of $1230
Adjusting entry for bad debts expense =Account receivables - credit balance of $1230
= $13,900- $1,230
=$12,670
Adjusting entry for the record of bad debts expense
Accounts titles Debit Credit
Bad debt expenses $ 12,670
To Allowance for doubtful accounts $ 12,670
Answer:
Variable costing income statement
Explanation:
The Variable costing income statement only includes variable costs in the cost per unit product. Variable costs examples are raw materials, direct labor and other variable overheads.
The fixed manufacturing costs together with the non-manufacturing costs are treated as period costs and expensed in the period in which they are incurred.
Triple bottom line is a framework for reporting material benefit, and this reporting has to be done transparently because of the corporate social responsibilities. This transparent reporting is a part of the triple bottom line.
Answer:
Debit Cash account $6,500
Credit Deferred revenue $6,500
Explanation:
When cash is collected in advance for a service yet to be rendered, the revenue for that service will be deferred in recognition.
The company will recognize an asset in form of cash and a liability in form of deferred revenue.
Hence to record the transaction,
Debit Cash account $6,500
Credit Deferred revenue $6,500
Being entries to recognize cash collected for service yet to be rendered.
Answer: Current Asset
Explanation:
Accounts receivable is defined as money owed to the company by its customers for goods or services rendered that is to say When a company provides goods or render services to another customer or company but is awaiting payment on a short term basis, then the company documents the accounts receivable on a balance sheet as a current asset.
it is recorded as current asset because under legal obligations, the company will receive cash in due time,usually within a year that is why companies who render credit based goods and services set payment terms and conditions to monitor and ensure payment because this affects the company liquidity.
