Answer:
See below
Explanation:
Goodwill arises when is a business is acquired as a going concern. It is an intangible asset of a business. Goodwill represents the value of a company's customer base, its location, any patents, and the brand name. It consists of the value of suppliers, customers, and employee relationships that facilitates the smooth running of the business.
The value of goodwill is the difference between the purchase price and the net cost of its tangible and other intangible assets of a business. Amortization of goodwill means spreading the cost of goodwill to several financial years.
Goodwill is amortized because the business benefits from the goodwill for many years. In other words, the expenditure on goodwill will profit the company in more than one financial year. As per the matching principle, expenses and incomes should be recognized in the period they occur. As benefits will be enjoyed in many years, the expenses should also be spread in similar years.
Answer: Did u find out the anser?
Explanation: Im taking the quiz now
Answer:
<em>An inferior good</em>
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Explanation:
<em>An inferior good is a good whose demand decreases with consumer's increase in income</em>. John's increase in pay, that came with his promotion, triggered John to switch to driving everywhere he goes instead of riding the bus. This is because John feels that riding the bus is no longer fit for him, now that he could readily afford driving around in the stead of taking the cheaper bus ride.
Answer:
The journal entry is shown below:
Explanation:
The journal entry for writing off the amount through using the Allowance Method is as:
Allowance for Bad debts A/c.............................Dr $300
Accounts Receivable A/c...........................Cr $300
While writing off the amount of bad debt, the allowance for bad debts account is debited against the accounts receivable account.
The journal entry which is to be recorded for reversing the write off through using the Allowance Method:
Accounts Receivable A/c...........................Dr $300
Allowance for Bad debts A/c......................Cr $300
So, for reversing the original entry would be reversed, which means the accounts receivable account is debited as the payment is received and the bad debts got decrease, which means the allowance for Bad debts is credited.
