The Allowance for Doubtful Accounts T-account will have the write-offs of specific customers sales discounts and allowances on the credit side.
<h3>What is
Doubtful Accounts?</h3>
It lowers the value of an asset—in this case, the accounts receivable—the allowance for dubious accounts is referred to as a "contra asset."
The allowance, also known as a bad debt reserve, is management's projection of the amount of accounts receivable that customers will not pay.
Thus, option B is correct.
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Answer:
C. Pro Forma Income statement
Explanation:
Pro forma income statement is an estimated income statement. It is a projected income statement created by organizations aimed at preparing both forecast income which is money they hope to recieve and forecast expenditures which are money they expect to spend with considerations of various conditions like market, competition and so on for an estimated period. They are income statements that shows "what ifs" rather than the real income statement. By predicting sales level and so on, Mariana prepare a pro forma income statement.
Answer:
The correct answer to allocate the amount of cost would be allocated to the startminus up business is $56859
Lease rent allocated to startminus up business = $260000 × 12% = $31200
Allocation of overall costs of maintaining the space = $25659
Amount of cost allocated to the startminus up business = $31200 + $25659 = $56859
Answer:
Accumulated depreciation= $24,000
Explanation:
Giving the following information:
Using the straight-line method of depreciation, annual depreciation expense is computed as $8,000.
Under the straight-line depreciation method, the annual depreciation remains the same during the useful life.
Accumulated depreciation= annual depreciation*number of years
Accumulated depreciation= 8,000*3= $24,000
