Answer: Establishing an Allowance for Doubtful Accounts under the allowance method is necessary <u><em>because estimates must be made when recording bad debt expense and it is not possible to know which specific accounts will not be collected.</em></u>
Allowance for doubtful accounts is a diminution of accounts receivable and is recorded as a write-off straightaway beneath accounts receivable that is appearing on a organization balance sheet.
Answer:
D. Cannot be determined given the information provided.
Explanation:
The accounting equation deals with the 3 elements of the balance sheet namely; assets, liabilities and equity and the relationship between them as shown below.
Assets = Liabilities + Equity
Given;
Total asset = $288,000
Equity = Retained earnings + common stock
= 40,000 + 100,000
= $140,000
Liabilities = $288,000 - $140,000
= $148,000
Liabilities include; Notes Payable 88,000, Salaries Payable ? Accounts Payable ?
Since the Salaries Payable and Accounts Payable are not known, the right option is D. Cannot be determined given the information provided.
Answer:
Dec 31, 2018
Interest expense 3313.33 Dr
Interest Payable 3313.33 Cr
Explanation:
The note interest is payable at an annual rate of 4%. The interest will be paid at maturity however, an adjusting entry will be made on December 31, 2018 following the accrual basis of accounting to record the interest expense that relates to the period from November to December of 2018. The interest expense will be debited and as the interest will be paid at maturity, interest payable will be credited.
Interest expense = 497000 * 0.04 * 2/12 = $3313.33
The correct answer to this open question is the following.
Yes, a business should value its human assets because it is the way to evaluate the productivity of the employee and if it is accomplishing its goals and working in the way the company is expecting it to perform. Should it be included in the company's balance sheet? Here is where the specialists' opinion is divided. Some Human Resources managers say that it is difficult to apply a financial value to people to be included as a component of the balance sheet. Others think that it could be possible but it is not the traditional way to do it and it exposes some risks. What indeed specialist agree on is in the fact that some way or the other, the human factor has to be considered in the evaluation process to make business decisions.
Answer:
Option "Sell securities but instead start raising the federal objective Rate of funds" is the right response.
Explanation:
- Across the whole of collective memory, the free-market community had already progressed thru all the boom-and-bust phases.
- The Federal Reserve must have been designed to assist start reducing this year's injuries caused mostly during depressions but instead provided several other effective features to impact the money supply. Continue reading to learn how well the Fed is managing this same money supply.
Some other decisions are not comparable to the type of situation in question. So that is the correct choice.
