Answer:
- Dr Bad Debt expense 6,000
- Cr Allowance for Doubtful Accounts account 6,000
Explanation:
The total estimated bad debts are $4,800 (= $80,000 x 6%). So the Allowance for Doubtful Accounts account ending balance should be $4,800. Since this account is a contra asset account, the ending balance should be $4,800 credited.
But currently the account has a $1,200 debit balance (it's like -$1,200), so the adjustment record must be = $4,800 + $1,200 = $6,000
That way the ending balance = $6,000 - $1,200 = $4,800
The journal entries should be:
- Dr Bad Debt expense 6,000
- Cr Allowance for Doubtful Accounts account 6,000
Answer: Discharged
Explanation:
Discharge contract is one of the type of concept that helps in making the various types of agreement between the two members or any two companies.
The discharged contract is basically discharged by using the various types of operation of laws and also b terminating the different types of obligations.
According to the given question, the Clyde contracts with the deep-hole excavation Inc., is one of the type of discharged contract for the process of digging an agriculture farm. Therefore, Discharged contract is the correct answer.
Answer:
D) Recorded in the accounts if the amount may be reasonably estimated and it is probable that the future event creating the obligation will occur
Explanation:
This is the best answer to the question
