Answer: A) Income Summary
Explanation:
The Income Summary account is used to compile temporary accounts before posting them to capital accounts. Revenues, Expenses and Cost of Goods are temporary accounts which will be compiled in the Income summary account.
The Income summary account has a debit and a credit side with income going on the credit side and expenses going on the debit side. If the credit side is higher than the debit side then profits have been made. The reverse is true.
Requesting an interview during a telephone call to the employer.
Answer:
64,313.74 ; 95,559.38 ; 47,283.11
Explanation:
by definition the present value of an annuity is given by:
where 
is the present value of the annuity, 
is the interest rate for every period payment, n is the number of payments, and P is the regular amount paid. so applying to this particular problem, we have:
1. P=8,200, n=25, i=12%
2. P=8,200, n=25, i=7%
3. P=8,200, n=25, i=17%
Answer:
Correct option is (c)
Explanation:
Progressive tax rate depends upon the income of the individual. In other words, progressive tax rate increases as income increases. So, higher income group have to pay more taxes as compared to lower income group.
Proportion of tax collected from high income group is more in case of progressive tax rates. In this case, Blade's tax rate is 10% that is 5,000/50,000 and Caden's tax rate is 12% that is 12,000/100,000.
So, tax rate is higher for Caden as compared to rate applicable on Blade's income.
Answer:
a. $25,650
b. Journal entries
Explanation:
The computation is shown below:
a. The balance of the Allowance for Doubtful Accounts is
= Total account receivable × estimated percentage
= $570,000 × 4.5%
= $25,650
b. The adjusting entry is as follows
Bad Debt Expense $13,650 ($25,650 - $12,000)
To Allowance for Doubtful Accounts $13,650
(Being the bad debt expense is recorded)
c. The adjusting entry is as follows
Bad Debt Expense $26,650 ($25,650 + $1,000)
To Allowance for Doubtful Accounts $26,650
(Being the bad debt expense is recorded)
