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aalyn [17]
3 years ago
13

Grey Corporation has $100,000 of accounts receivable on December 31, 2015. The unadjusted balance of its Allowance for Doubtful

Accounts is a credit of $1,000. Experience suggests 5 percent of its receivables will be uncollectible. The amount that should be debited to Bad Debt Expense and credited to Allowance for Doubtful Accounts in the year-end adjusting entry is _____.a.$50b.$1,000c.$2,070d.$5,000e. $6,000f. $4,000
Business
1 answer:
Ksenya-84 [330]3 years ago
4 0

Answer:

4,000

Explanation:

expected uncollectible 5% of Ar

5% of 100,000 = 5,000

current balance  (1,000 credit)

Adjustment 4,000

When the uncolelctibles are made base on account receivable, the amount calculate is the ending balance and we should calculate the adjustment  by the diference between beginning balance and ending balance

If the allowance is made based on sales then weshould adjust for the whole amount of the expected bad debt

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The value of money grows fast during hyperinflation.

Hyperinflation is defined by fast and unrestricted price rises in an economy, generally at rates greater than 50% per month over time. In times of war and economic turbulence in the underlying manufacturing sector, along with a central bank creating an excessive quantity of money, hyperinflation can arise.

As essential items such as food and gasoline become limited, hyperinflation can cause price increases.

While hyperinflations are uncommon, once they start, they may quickly spiral out of control.

Therefore, the correct option is rises rapidly.

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2 years ago
If the monetary authorities decide to increase the nominal money supply by 10% when the economy is at its full employment level
Norma-Jean [14]

Answer:

  • 10%
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Explanation:

If the money supply is increased by 10%, the inflation rate will also increase by 10%.

In the short run the economy will be able to produce an output which is higher than the potential GDP, but once the inflation rate catches up, both the unemployment rate will increase and the real GDP will return to its potential output level.

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3 years ago
Great Harvest Bakery purchased bread ovens from New Morning Bakery. New Morning Bakery was closing its bakery business and sold
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Answer:

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Explanation:

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Add Freight costs 30,000

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Total cost of equipment $759,000

Therefore the amount at which the ovens should be recorded in Great Harvest’s Equipment account will be $759,000

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"Controlling" is the right response.

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After that, Michele checks the availability as well as chooses to make several other significant changes to the program.

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