Using the allowance method, is bad debt expense recognized in the period in which sales related to the uncollectible account are made.
One of the most typical types of bad debt is credit card debt. Lenders issue credit cards, which let you make purchases on credit. These credit cards frequently have exorbitant interest rates that can soon become out of control.
Bad debt costs are typically listed on the income statement as a sales and general administrative expenditure. Accounts receivable on the balance sheet are reduced when bad debts are recognized, but firms still have the right to collect money if the situation changes.
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Suppose a worker quits her job in order to look for new work. after a week or two of looking, she finds a new job. during her brief job search, she experienced frictional unemployment
<h3>What is frictional Unemployment</h3>
Frictional unemployment occurs when an individual is temporarily unemployed as a result of searching for new or better job.
This is a time of transition usually from an existing job to a new one.
Therefore, Suppose a worker quits her job in order to look for new work. after a week or two of looking, she finds a new job. during her brief job search, she experienced frictional unemployment
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Answer:
b. $8,140
Explanation:
The computation is shown below:
= Merchandise amount - return and allowances - discount + freight charges
= $10,000 - $2,000 - $160 + $300
= $8,140
The discount = (Merchandise amount - return and allowances) × discount rate
= ($10,000 - $2,000) × 2%
= $160
Simply we deduct the returned inventory and discount expense and added the freight charges to the merchandise amount
Answer:
3. Generally consists of a company's cumulative net income less any net losses and dividends declared since its inception.
Explanation:
Retained earnings or retained earnings are those benefits that the company has earned and that instead of distributing among the shareholders, they decide to invest in the company itself.
These earnings can be used to achieve further growth of the company, such as increasing the workforce, improving the budget dedicated to research or to obtain a liquidity fund that allows the company to correct possible emergency situations in the future.
