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aleksley [76]
3 years ago
8

The collection of an account that had been previously written off under the allowance method of accounting for uncollectibleA. w

ill increase net income in the period it is collected.B. will decrease net income in the period it is collected.C. does not affect net income in the period it is collected.D. requires a correcting entry for the period in which the account was written off
Business
1 answer:
Alex777 [14]3 years ago
3 0

Answer:

C. does not affect net income in the period it is collected

Explanation:

The whole point of the allowance method is to do not impact the net income when performing a write-off

When a write-off occurs the following entry is made:

allowance for doubful accounts  debit

               account receivable                credit

If the account is reversed:

account receivable         debit

   allowance for doubful account     credit

cash                    debit

   account receivable      credit

There is no revenue or expense account used in the procedure. Therefore, it does not affect net income.

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Suppose that a company needs 1,500,000 items during a year and that preparation for each production run costs $900. Suppose also
bulgar [2K]

Answer:

30,000 units

Explanation:

we can use the economic order quantity formula:

EOQ = √(2SD/H)

where:

  • S = order cost (per purchase order) ≈ production run cost = $900
  • D = demand in units (annual basis) ≈ production requirement = 1,500,000 units
  • H = holding costs (per unit, per year) = $3 per item, per year

EOQ = √[(2 x $900 x 1,500,000) / $3] = 30,000 units

5 0
3 years ago
How do contact lists differ from an address book?
PilotLPTM [1.2K]
Contact lists contain more information about a person than an address book. A contact list is a collection of screen names in an instant messaging or e-mail program or online game or mobile phone. a address book is a book for recording the names, addresses, and telephone numbers of friends, businesses.
8 0
2 years ago
Suppose the economy's production function is ???? = ????K 0.3???? 0.7 . If K = 2000, N = 100, and A = 1, then Y = 246. If K and
densk [106]

Answer:

Y=38.8

Y will increase by 38.8

Y=246+38.8

Y=284.8

Explanation:

Y=A. F(K, L)

Y=A. K^0.3, L^0.7

Then

Y=246

A=1

K=2000

N or L=100

Solutions

200=1(2000^0.3, 100^0.7)

Now the question says both k & N are increased by 0.20

Therefore

Y=1(2400^0.3, 120^0.7)

Y=1(10.3 + 28.5)

Y=38.8

4 0
2 years ago
Juniper Bush Farm has a December 31 fiscal year end. The company has six notes payable
marusya05 [52]
Juniper Bush Farm has a December 31 fiscal year end. The company has six notes payable
outstanding on December 31, 2014, as follows:
i. A nine-month, 5%, $25,000 note payable issued on July 1, 2014. Interest is payable
monthly on the first day of each month starting on August 1.
ii. A six-month, 4%, $10,000 note payable issued on September 1, 2014. Interest and
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iii. A seven-month, 4.5%, $40,000 note payable issued on November 1, 2014. Interest and
principal are payable at maturity.
4 0
3 years ago
Sharon works for a cereal manufacturing company. Her company recently built a manufacturing facility in Canada and agreed to tak
sergejj [24]

Answer:

d. buyback

Explanation:

The scenario that is being described is a form of countertrade known as buyback. There are two reasons why this usually happens. The first is that the manufacturing company has limited access to liquid funds in the country which they are currently located and the goods provide better value. The second circumstance would be that they believe that the product being produced will increase in value and their profits will increase by holding the product as opposed to liquid funds.

4 0
2 years ago
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