<span>Bad debt expense would be $140,000 multiplied by 3% minus
the credit balance of allowance for doubtful accounts of $1,400 that is $2,800.
The journal entry will be a debit to bad debt expense worth $2800 and a credit
to allowance for doubtful accounts worth $2800</span>
Answer:
The total cost of land is $107,800, and the total cost of land improvement is $35,500.
Explanation:
This solution is obtained considering that the cost of land is the amount paid for the property. But since the taxes should also be paid to own it, this amount must be added to the total cost. It is a cost related to the purchase itself. This will be a total of 100,000 + 7,800.
On the other side, the rest of the costs are related to improvements on the property, and not to own it (demolishing, clearing, paving). This is a total cost of 8,000 + 20,000 + 7,500.
Answer:
c). Lending money to business startups.
Explanation:
Banks receive deposits from customers, retains a small fraction, and loan out the big proposition to other customers. This way, banks pull together resources for businesses and households to borrow for consumption and expansion. Therefore, banks are intermediaries for the supply and demand for credit.
Banks help in economic development by availing capital for start-ups and growth through loans. They use customers' deposits to create credit facilities for businesses.
All of them represent liabilities that must be paid back at some specified point in the future.
<h3>What are liabilities?</h3>
Liabilities are financial obligation of a company that results in the company's future sacrifices of economic benefits to other entities.
There are various reason why a company would incur liabilities:
- Human error.
- Environmental damage.
- Defective product/work.
- Natural hazards.
Hence, all of the above represent liabilities that must be paid back at some specified point in the future.
Learn more about liabilities here: brainly.com/question/2819860