Avoiding, reducing, reusing and recycling can lower your costs. For example, a few simple changes to how you deal with paper can involve your staff in environmentally friendly processes while saving you money:
avoid using materials unnecessarily
reduce your paper needs by asking staff to print double-sided
reuse by encouraging staff to use scrap paper for message-taking instead of purchasing message pads
recycle by shredding excess paper - you could recycle this commercially or invite staff to take it home for their compost or mulch heaps.
Answer:
The write-off to be approved by two employees
Explanation:
Allowance Method
This method is capitalizes on matching principle. The key work is to record bad debts expense in the same period as the sales revenue.
Direct Write-off Method
This is simply known as when an accounts receivable are written off and bad debts expense is recorded when the company determines that it will not be able to collect from a specific customer.
Method used
Record bad debts expense and reduce accounts receivable
Debit: Bad Debts Expense
Credit: Accounts Receivable
Recovery method
Step 1: Reverse earlier write off
Debit: Accounts Receivable
Credit: Bad Debts Expense
Allowance For Bad Debts Account
It is usually in a contra asset account, in relation to accounts receivable, that holds the estimated amount of uncollectible accounts. The account is said to limits the asset receivable in anticipation of uncollectible debts.
<span>The balance in total assets after the transaction is $36,000. This is because expenses are not assets. An asset must have value, meaning that it can be either be sold, or that the consumption of it will garner income. Expenses such as taxes or legal fees cannot later be sold or consumed for income.</span>
Answer:
D. Liabilities are overstated
Explanation:
The given journal entry is
Cash A/c Dr XXXXX
To Account payable A/c XXXXX
(Being the cash collection is recorded)
This above journal entry is wrong.
The correct journal entry is as follows:
Cash A/c Dr XXXXX
To Account receivable A/c XXXXX
(Being the cash collection is recorded)
For rectifying this error, either we reverse the given entry and pass the correct journal entry that is shown above or pass the entry that is given below:
Account payable A/c Dr XXXXX
To Account receivable A/c XXXXX
So, we can see the liabilities accounts are overstated due to this error
These are operational decision specific to market placement. Even though one location was doing poorly, Tommy's hopes to increase sales by opening more locations in a more profitable part of town.