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dsp73
3 years ago
13

On December 31, 2019 a company’s Accounts Receivable balance was $440,000. During the year the company recorded credit sales of

$770,000 and cash collections of $820,000. In addition, the company wrote off $16,000 of accounts as uncollectible and reinstated and collected on an accounts receivable that was previously written off that totaled $3,000. The company uses the allowance method to account for its receivables.What is the effect of the accounting equation if the company fails to make the adjusting entry to record bad debt expense?

Business
1 answer:
Semenov [28]3 years ago
6 0

Answer: Option C - Assets are Overstated; No effects on liabilities: Equity is Overstated

Explanation:

When Bad debts are recorded, they will reduce the Accounts Receivable account because less money will be expected from debtors. Accounts Receivable is an asset account so it will be Overstated if bad debts are not recorded.

Equity will also be overstated because bad debts is an expense that is sent to the Income statement. If this expense is not deducted, the net income will be larger than it should be and when added to Equity it will overstate it.

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Phantasy [73]

Answer:

The correct answer is c. ​A firm considers overhead or depreciation costs to make short-run decisions

Explanation:

As Professor Adam Grant suggests, sunk costs have an important effect on our decisions, but there are three factors that influence us even more: anticipated regret ("will I regret it if I don't give the project another chance?"), project completion ("if I continue to invest, I will finish the project successfully") and the threat of ego ("if I do not continue betting on the project, I will seem a failure"

A good option is to prevent these three factors from occurring and constantly ask for feedback from those around us (collaborators, partners, friends). If we ignore the opinions that go against what we think, we will be putting the project at risk without realizing it. On the contrary, those who do not mind "swallowing pride" in the short term will make better decisions in the long term. On the other hand, separating the project from the person, the entrepreneurial venture, will help us not to take the recommendations of our environment personally and to react much more quickly and quickly.

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3 years ago
What is the difference between national and enterprise.
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Answer:

National car rental provides a better overall service when compared to Enterprise car rental. National rental offers a more customer-focused service with better-quality cars in more convenient locations.

Explanation:

4 0
2 years ago
Claire wants to include animations in her presentation slides. Which element of the presentation program’s interface will have t
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The option would be available in the Animation tab available on Claire’s Microsoft Point.

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2 years ago
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mel-nik [20]

Answer:

B. decisions made by individual households and firms.

Explanation:

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2 years ago
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Answer:

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