Answer:
Estimating un-collectible accounts expense improves the matching of revenues and expenses.
Explanation:
When uncollectibles are recorded through allowance method then, bad debts expense is provided, which reduces net income. But at the time of writing off only the allowance and accounts receivables account is affected and not the net income.
When direct method is used then also the net income gets reduced, as bad debt expense and accounts receivables is affected.
And as provided in first para, when estimating and creating the allowance for bad debts, it affects net income, and it also represents the true and fair view of expenses and income.
Thus, statement c is correct.
Answer: The secondary source on a topic may be biased because the information is translated and the text and information could be altered
Explanation:
Current balance in the general ledger cash account is $5,320
Explanation:
General ledger
Opening balance $4,000
(Add)
A note collected by a customer $1,000
interest collected by a customer $40
NSF check from a customer $300.
------------------
$5,340
(Less) bank service charges $20
---------------
Balance in the general ledger
cash account is $5,320
current balance in the ledger cash account =
( $4,000+ $1000+ $40+ $300- $20= $5320)
Answer: C. The employees will receive a share of profits as part of the company's ESOP.
Explanation:
The retirees can still get a portion of profits if they are part of an Employee Stock Ownership Plan.
ESOP is a pretty standard thing these days with companies where they reward their employees with shares in the company.
Seeing as the company is making too little to be able to keep paying Retirement benefits, the retirees being owners of Stock can still partake in the earnings that the company makes when they distribute dividends.
Answer:
$100,000 and $241,000
Explanation:
The computation of the gross profit for the Black and Navy Divisions shown below:
As we know that
Gross profit = Sales - cost of goods sold
For Black, it would be
= $200,000 - $100,000
= $100,000
And, for Navy, it is
= $400,000 - $159,000
= $241,000
We simply applied the above formula to compute the gross profit
