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frez [133]
3 years ago
10

When a company uses the allowance method to measure bad? debts, ________?

Business
1 answer:
ale4655 [162]3 years ago
5 0
When a company uses the allowance method to measure bad? debts, Bad Debts Expense. 
<span>"The Bad Debts Expense account is facing a difficulty for achieving the objective, and when a certain or some account is written off".

This is Bad Debts Expense.</span>
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Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows.
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Using the degree of operating leverage, the estimated impact on net operating income of a 5 % increase in sales is 6.45%.

The degree of operating leverage (DOL) measures how much a company's operating income varies in response to sales fluctuations.

The DOL ratio assists analysts in determining how changes in sales affect company earnings.

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If sales increase by 5%, the calculation for increased Net Operating Income is as follows:

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Hence, Using the degree of operating leverage, estimated impact on net operating income of a 5 % increase in sales is 6.45%.

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Answer:

The answer is: I believe the question was not copied correctly since the numbers don't match.

The recorded transactions should be:

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Cash account should be debited, since it's an asset. Sales revenue should be credited since it increases equity.Unearned revenue is a type of liability, so it should be credited.

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