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3 years ago

The operating expense recorded from uncollectible receivables can be called all of the following except

Business

1 answer:

beks73 [17]3 years ago

6 0

Answer:

d .Accounts Receivable

Explanation:

Accounts receivables are amounts that a business expects to receive from its customers for goods and services sold on credit. In many instances, customers do not pay for deliveries immediately. In practice, a 30- 60 days credit period is allowed. Within this period, the customer is expected to make full payments for the goods.

In accounting, these expected payments are recorded as accounts receivables.

Should customers fail to make payments against account receivables, they convert to bad debts or uncollectable debts.

In summary, bad debts, uncollectable debts, and doubtful debts were initially accounts receivables. They changed status due to non-payments by customers.

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In its first year of operations, Gomes Company recognized $28,000 in service revenue, $6,000 of which was on account and still o

Mademuasel [1]

Answer:

a. The first year's net earnings under the cash basis of accounting is $7,600 and the first year's net earnings under the basis of accounting is $12,200

b. Accrual basis of accounting provides more useful information.

Explanation:

a. In order to calculate the first year's net earnings under the cash basis of accounting we would have to use the following formula:

Cash basis net earnings = Service revenue (Cash) – Cash expenses – Prepaid expenses

Cash basis net earnings =$22,000 – $12,000 – $2,400

Cash basis net earnings =$7,600

In order to calculate the first year's net earnings under the the basis of accounting we would have to use the following formula:

Accrual basis net earnings = Service revenue – Operating expenses incurred

Accrual basis net earnings= $28,000 – $15,800

Accrual basis net earnings=$12,200

b. Accrual basis of accounting provides more useful information, because in this system revenues are recorded what actually earned and expenses are recorded what actually incurred for earning such revenues. Therefore, it gives better profit picture

5 0

3 years ago

The following transactions occur for Cardinal Music Academy during the month of October: Provide music lessons to students for $

givi [52]

Answer:

See explanation section

Explanation:

1. Debit Cash $17,000

Credit Service revenue (music) $17,000

Note: The academy receives cash by providing music services to the students.

2. Debit Prepaid Insurance $4,200

Credit Cash $4,200

Note: The academy paid cash in advance to purchase insurance policy.

3. Debit Musical Equipment $20,000

Credit Cash $20,000

Note: The academy paid cash for acquiring musical equipment.

4. Debit Cash $30,000

Credit Notes payable $30,000

Note: The academy borrowed cash by signing a notes from the bank.

8 0

3 years ago

Is Darby doing anything wrong? If so, what? What ethics traps is she facing?

Rom4ik [11]

Answer:

Hello your question is incomplete attached below is a screenshot of the question

Answer: i) Darby is doing something wrong

ii) Ethic traps are : Money and Rationalization

Explanation:

Darby is doing something wrong because she is taking the benefits of H associates company for personal purposes. and this totally unethical behavior been exhibited by Darby

The ethics trap faced by Darby are :

Money ; Money is the most influential trap that makes employees engage in most unethical activities because Human beings want more money always

Rationalization : Darby is using the company's facilities for personal use because she feels that her usage of the facilities for personal use won't affect the company negatively

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3 years ago

Mabel just got a new credit card that offers both an introductory APR and a standard APR. If the standard APR is 15.5%, which of

olasank [31]

Answer: Apex 5.5%

Explanation:

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3 years ago

Read 2 more answers

Vanessa is the newest and least experienced member of the sales team at Organic Trade, Inc. In her first meeting after joining t

krok68 [10]

Answer:

Vanessa’s task-oriented leadership behavior is likely to be ineffective because low position power neutralizes this leadership behavior.

Explanation:

Vanessa is a newcomer to a company, with less time and acting experience than her staff, so her leadership behavior will be offset by her low position power. This occurs when an employee's hierarchical position does not allow certain actions, so Vanessa's actions would be neutralized and ineffective, having no impact on decision making.

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3 years ago