Answer:
Encumbrances $1000
Reserved for encumbraces $1000
Explanation:
Encumbrance is in the debit because is the money that we have destined for the purchase and since we have to get the money from our funds Reserved for encumbrances is in the credit.
Your parents give you a large set of instructions and ask you to watch your brother for the evening. There is no collaboration in this situation.
An agreement between two or more persons to manage a business's operations and divide its assets and liabilities is known as a partnership. In a general partnership corporation, the assets and liabilities are divided equally among all of the partners.
By definition, a partnership firm consists of two or more individuals who pool their resources to create a company and agree to split the risks, rewards, and losses. Examples of common partnership businesses include law firms, medical groups, investment real estate companies, and accountancy groups.
Two or more persons are required. An agreement is required. The firm must distribute its gains. There has to be reciprocal agency.
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The current ratio is 1.5.
<h3>What is the current ratio?</h3>
Current ratio is a liquidity ratio. Liquidity ratios measure a firm's ability to honour its short terms obligations.
Current ratio is the ratio of current assets to current liabilities. Current assets are assets that would be used up in a year. Current liabilities are debt obligations that would be settled within a year. Current liabilities excludes long-term debt.
The higher the current ratio, the higher the firm's liquidity and its ability to meet short term obligations.
Current ratio = current asset /current liability
= 600 / (1500 - 1100)
= 600 / 400
= 1.5
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Answer:
$11,750
Explanation:
The computation of bad debt is shown below:-
Bad debt expense = Estimated allowance for uncollectible at the year end - Existing balance in allowance for uncollectible account credit balance
= ($314,000 × 4%) - $810
= $12,560 - $810
= $11,750
Therefore for computing the bad debt expenses we simply applied the above formula.