1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Vitek1552 [10]
3 years ago
14

When the allowance method of accounting for uncollectible accounts is used, then

Business
1 answer:
Brums [2.3K]3 years ago
4 0

Answer:

Bad debt expense is recorded in the same year as the credit sale.

Explanation:

Allowance method is generally refer to one of the ways for reporting the uncollectible or bad debt expense which results from a company selling the goods on credit.

This method is used for the process or procedure of uncollectible accounts receivable that records the estimate of the bad debt expense in the same accounting year to which is belongs as the sale. This method is used for adjust the accounts receivable appears on the balance sheet of the company.

You might be interested in
Seojun acquired an activity several years ago, and in the current year, it generates a loss of $50,000. Seojun has AGI of $140,0
ahrayia [7]

Answer:

Seojun's Adjusted Gross income is $140,000.

Explanation: Adjusted Gross income(AGI) is a term used in Financial accounting to describe the total amount of gross income remaining after certain deductions have been made to the Gross income of a business entity over a given period of time.

Since Seojun is not a Material participant,the $50,000 loss can not be considered in calculating Seojun's Adjusted Gross income.

7 0
3 years ago
Five hundred units of good x are currently bought and sold. The marginal buyer is willing to pay $40 for the 500th unit, and the
dimaraw [331]

Answer:

D : All options are correct

Explanation:

- The marginal buyer is the essence of demand curve while marginal seller is essence of supply curve.

- @ Q = 500 units,    Selling Price is set at SP = $35

- @ Q = 500 units,    Buying Price is set at BP = $40

- Since, SP ≠ BP our equilibrium price would be $ 37.5 assuming the price elasticity of demand and supply are equal. In any case the equilibrium price would lie in between [ 35 , 40 ] such that to prevent a shortage of units in near future.

- Moreover, if the seller decides to sell at price $35 then he must sell goods greater than 500 units to reach the equilibrium profits. However, it could also lead to excess of units or surplus.

- We see that from selling the goods at SP = $35 while the buyer is willing to pay BP = $40 for 500 goods, the seller would be under-profiting and would be earning $5*500 = $2,500 less than he would at equilibrium price of $40 and selling units greater than 500. Hence, 500 goods is not an efficient quantity of goods.

6 0
3 years ago
Mercy Hospital is considering a project that is expected to reduce the hospital's annual operating costs by $250,000 per year be
gizmo_the_mogwai [7]

Answer:

$650,000

Explanation:

The computation of the expected net cash flow for the year 1 is shown below:

= Annual operating cost reduced + expected revenue generated per year in the year 1

= $250,000 + $400,000

= $650,000

By adding the annual operating cost, and the expected revenue generated we get the project expected net cash flow for the year 1

5 0
3 years ago
Megan's salary for three consecutive years, along with other values, are presented in the table below.Year
garik1379 [7]

Answer:

242.65

Explanation:

Data provided in the question:

year                                       2011          2012          2013

Salary                                 $65,000   $72,000    $76,000

Consumer Price Index          226           230            235

Real Interest Rate                 2.5%          2.7%           1.8%

Nominal interest rate for 2013 = 7.3%

Now,

Rate of inflation for 2013 = Nominal rate - Real rate

= 7.3% - 1.8%

= 5.5%

Therefore,

CPI in 2013 = Consumer Price Index in 2012 × (1 + inflation )

= 230 × ( 1 + 0.055 )

= 242.65

3 0
4 years ago
A classmate excitedly tells you of what he believes to be a good deal. He goes on and on about signing up for a free 30-day tria
Nikitich [7]

Answer:

reciprocity principle

Explanation:

A reciprocity principle is a form of socio-psychological principle in which individuals generally tend to pay back in good, and in any form of capacity for whatever favor they receive.

Hence, in this case, the music company is hoping the the "reciprocity principle" will work on consumers that subscribe to free music as they might wish to give back to the company based on consumers feeling indebted to them for all the free music that was streamed

8 0
3 years ago
Other questions:
  • Flagler Corporation shows a total of $1,190,000 in its Common Stock account and $1,050,000 in its Paid-in Capital Excess account
    15·1 answer
  • You have $5,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 15 percent and Stock Y with
    6·1 answer
  • Rainey Company's true cash balance at October 31 is $5,710. The following information is available for the bank reconciliation:
    11·1 answer
  • Morrow Enterprises Inc. manufactures bathroom fixtures. The stockholders’ equity accounts of Morrow Enterprises Inc., with balan
    12·1 answer
  • You purchased a share of stock for $50. Two years later you received $2 as dividend and sold the share for $59. What was your ho
    8·1 answer
  • In an economy with a population of 100 million persons, 42 million hold civilian jobs and 6 million are not working but are look
    14·1 answer
  • What is the value of a loom that is expected to generate fixed annual cash flows of $3,640 every year for a certain amount of ti
    14·1 answer
  • One part of a cooperations income is paid out to shareholders it is called a ______.​
    6·2 answers
  • Harold works as an operations manager. He uses a project management tool to schedule and manage the steps of the manufacturing p
    5·1 answer
  • Greg earned $25,500 in 2021 and had $1,500 of federal income taxes withheld from his salary. Assuming that Greg is single, 25 ye
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!