Answer: The correct answer is b. debit to Bad Debts Expense for $1,800.
Explanation: The company adopts the aging bad debt method on receivable. The aging method is a way of classifying receivables as uncollectible based on the length of time the receivables have been outstanding and the probability of recoverability of such receivables.
To make a provision for bad debt expense: debit is passed to bad debt expense while credit is passed to allowance for doubtful accounts. The bad debt expense reports to the income statement while allowance for doubtful accounts reports to the balance sheet (statement of financial position). Based on the question, the allowance for doubtful accounts has a credit balance of $1,200; however, $3,000 was estimated to be uncollectible. In order to restate the amount to $3,000, we need to debit bad debt expense and credit allowance for doubtful accounts with $1,800 ($3,000 - $1,200).
The steps of the DG pickup process which are put into the correct order are as follows:
- Download and Install the DG application
- Make enquiries on whether the particular store makes use of DG pickup
- Make an order and reserve a time slot
- Add the items to the virtual cart
- Put the digital coupons of the DG pickup
- Checkout
<h3>What is a Pickup Service?</h3>
This refers to a type of service which is used to deliver goods from one location to a customer at his preferred location.
With this in mind, we can see that the correct steps of making use of online pickup service such as DG pickup is shown as there needs to be the installation of the app, then to add the items to the cart and finally checkout.
Read more about pickup services here:
brainly.com/question/6855095
Answer:
C. The firm is profitable because profit equals $27,500.
Explanation:
For computing the profit, the following formula should be used
Profit = Total revenue - total cost
where,
Total revenue = Number of units sold × market price
= 20,000 units × $15
= $300,000
And, the total cost would be
= Labor cost of the firm + total capital stock × given percentage
= $248,500 + $400,000 × 6%
= $248,500 + $24,000
= $272,500
Now the profit would be
= $300,000 - $272,500
= $27,500
Answer:
The appropriate solution is "764".
Explanation:
Given:
Demand per month,
D = 405
or,
= 
= 
Ordering cost,
S = $15
Holding cost,
H = $0.25
As we know,
⇒ 
⇒ 
⇒ 
⇒ 
⇒ 
or,
⇒ 