Answer:
Some rights of common stockholders are given below.
Voting power on major issues.
Ownership in a portion of the company.
The Right to transfer ownership.
Right to receive declared Dividends.
Opportunity to inspect corporate books, minutes file and other records.
The right to sue for wrongful acts.
Right to attend AGM.
Differences between common and preferred stock
Preferred stock have no voting right while common stock holders have voting right.
When interest rates rise, the value of the preferred stock declines, and vice versa. With common stocks, however, the value of shares is regulated by demand and supply of the market participants.
Common stockholder has right to participate in net asset of company in case of winding up. Preferred stock holder has no such right.
Company profitability have direct effect on wealth of common stockholder but not of preferred stock holder.
A witness testimony would be direct evidence. Hope you found that helpful :)
Answer:
b. $3,000
Explanation:
According to the above information, the following data are given
Credit sales = $100,000
Uncollectible percentage = 3%
So, after the adjustment by using allowance method, Bad debt expense can be calculated as;
Bad debt expense = Credit sales × Uncollectible percentage
= $100,000 × 3%
= $3,000
