Let us assume that the company Taylor Industries bought merchandise from X company. Taylor Industries will record Accounts Payable while X company will record Accounts Receivable.
Since Taylor Industries will no longer be able to pay off its Account Receivable, X company will have to write off the Accounts Receivable. Writing off Accounts Receivable can be done in two ways.
1) Allowance method:
Bad Debt Expense xxxxx
Allowance for Doubtful accounts xxxxx
Writing Off Bad Debt:
Allowance for Doubtful Accounts xxxxx
Accounts Receivable xxxxx
2) Direct Write-off method.
Bad Debt Expense xxxxx
Accounts Receivable xxxxx
In the books of Taylor Industries, it must recognize the cancellation of the Accounts Payable from the transaction with X company.
Accounts Payable xxxxx
Other Income xxxxx
Answer:
TRUE
Explanation:
The Z value determinates the level of service at a normalize distribution of (0;1) We then convert this value to the deviation of our distribution by multiplying each other.
The Z value represent the the value at which a 99% or 95% or whatever percent of change of safety is achieve. We convert by our deviation to adapt the normalize distribution of (1;0) to our values.
There is always a chance for stock-out as we work with probabilities and at more higher safety level we require more units to make up for the change of a single customer from nowhere purchase an unexpected amount. As this person can appear anytime and purchase any amount there is always a level of uncertain (5% or 1% or less)
Answer:
b. There is no general rule for when an account becomes uncollectible.
Explanation:
Accounts uncollectible are the debts and loans which do not have any chance of being paid. There are many other reasons by which the account becomes uncollectible. The inability of the debtor, the bankruptcy of the debtor and the fraud conducted by the debtor are some of the reasons why accounts become uncollectible.
The answer is A: Stereotype because the male coworker told her “Don’t be such a girl”
