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Katarina [22]
3 years ago
12

The direct write-off method is used when: Multiple Choice Uncollectible accounts are not anticipated or are immaterial. A compan

y elects to use this method as one of several alternatives. A company has greater cash outflows than cash inflows. A company expects excessive sales returns.
Business
1 answer:
stellarik [79]3 years ago
4 0

Answer:

The correct answer is letter "B": A company elects to use this method as one of several alternatives.

Explanation:

The direct write-off method is one of two main approaches used to recognize bad debts being the other the allowance method. Using the direct write-off method implies straight recognizing an account as uncollectible as soon as the firm determines there will not be payment for it. There is no allowance account created for the debt. The bad debt, in either case, diminishes the company's period revenue.

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Problem 12-04A The income statement of Kingbird, Inc. is presented here. Kingbird, Inc. Income Statement For the Year Ended Nove
barxatty [35]

Answer:

Cash Flow From Operating Activities

Cash Receipt from Customers                       $7,260,000

Cash Paid to Suppliers and Employees       ($6,294,700)

Cash Provided by Operating Activities            $965,300

Explanation:

Step 1 : Cash Paid to Suppliers and Employees Calculation

Cost of goods sold                                         $4,987,300

Add Operating expenses                                $1,120,500

Total                                                                 $6,107,800

Adjustments :

Depreciation expense                                        $95,300

Decrease in Inventory                                     ($536,700)

Increase in Prepaid Expenses                          $179,800

Decrease in Accounts Payable                        $345,700

Decrease in Accrued Expense Payable          $105,800

Cash Paid to Suppliers and Employees       $6,294,700

Step 2 : Cash Receipt from Customers Calculation

Sales revenue                                                $7,465,900

Less Increase in Accounts receivable          ($205,900)

Cash Receipt from Customers                      $7,260,000

4 0
3 years ago
According to the circular flow model, which of the following is notprovided by consumers?
andreev551 [17]

consumers don’t provide land

5 0
3 years ago
An important cloud design philosophy that defines all interactions among computing devices as services in a formal standardized
Fynjy0 [20]

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3 0
3 years ago
Jones company lends Alabater Inc. $85,000 on August 6, 2018. This loan was memorialized with a signed note receivable with a rep
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Answer:C) $2,125.

Explanation:

Interest = Principal x rate x time (period)

using days in a year = 360 days

Interest = $85,000 X 10% x 90/360

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