The correct answer is choice b - the percentage of receivables basis.
When an accountant is calculating the bad debts expense they will take into account the balance in the Allowance for Doubtful Account when they are calculating on the percentage of sales basis.
Answer: Increase
Explanation:
According to the Law of Supply and Demand, If the demand for the good is higher than the supply, the price will be higher to reflect the relative scarcity and if the demand is lower than supply, the price will be lower to reflect the relative excess.
In this case the quantity demanded is higher than the quantity supplied so the price will have to increase to reflect the relative scarcity of the good.
Answer:
See below.
Explanation:
Journal entries to record the transaction are as follows,
Debit Computer account with $3,432
Debit Accumulated depreciation account with $18,720
Credit Truck account with $20,800
Credit Cash Account with $520
Credit profit on sale of asset with $832
This the journal entry that balances the books by targeting appropriate accounts.
Note that accumulated depreciation account has a credit balance as it is an asset reducing account.
Hope that helps.
Answer:
1. Journal entries are quicker and more comfortable in the manual accounting
2. Posting is easier in computer software-based accounting
3. Trial balance adjustment in manual accounting is tricky. However, a lengthy process may pose a challenge for computerized accounting.
4. Financial statements are more straightforward in software-based accounting than manual accounting
Explanation:
The introduction of accounting software such as QuickBooks has transformed the working for accounting professionals. The conventional accounting system replacement has made the job more comfortable. However, there are new challenges added, such as learning the software, making error-free inputs, and pace of computer-related entries. However, considering that once these skills are learned, the overall job is easier than before.
1. Journal entries in manual are made quicker, and errors can be rectified. However, entries are linked automatically to their respective ledgers that solve the challenges with compound entries
2. Posting is simpler in software as the general ledger is created on a single click. Manual posting requires time and efforts
3. Adjusted entries need to manual input in conventional method to create the adjusted trial balance whereas, in software, its added through adjusting journal entries.
4. Financial statements are much more straightforward in software as they are available on one click, whereas in manual accounting, they are required to be calculated.
