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3 years ago

Gonzalez Company has been in business for several years. At the end of the current year, the ledger shows:

Business

1 answer:

Westkost [7]3 years ago

6 0

Answer:

Debit : Bad Debts = $16,370

Credit : Allowance for doubtful debts = $16,370

Explanation:

The question states that bad debts are expected to be 5% of the accounts receivables. This means that it is: $327,400 x 5% = $16,370.

An account for allowance for doubtful debts is a contra account created, predicting that certain debtors will not be able to pay for the goods and services they purchased. The 5% may be based on historical experiences. Doubtful debts aren’t officially uncollectible, it is simply a prediction, but bad debts are, where you have officially written off a certain accounts receivable as uncollectible.

An allowance for doubtful debts is recorded in the balance sheet, directly under accounts receivables. Bad debts are recorded as an expense in the income statement.

The initial entry for allowance for doubtful debts is incorrect, hence it would have to be corrected before the new amount can be recorded. Correction:

Debit : Allowance for doubtful debts = $7900

Credit : Bad debts = $7900

The accounts will be cancelled off and the new entry can be recorded...

Debit : Bad Debts = $16,370

Credit : Allowance for doubtful debts = $16,370

When the amount is officially declared uncollectible, the allowance for doubtful debts account will be debited and the accounts receivables account will be credited.

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At the beginning of 2018, Artichoke Academy reported a balance in common stock of $168,000 and a balance in retained earnings of

frozen [14]

Answer:

increase in retained earnings = $48,000 - $11,800 = $36,200

increase in common stock = $58,000

<h2>Balance sheet</h2>

Assets:

Assets

Cash $54,400

Supplies $12,700

Prepaid rent $33,000

Land $290,000

Total assets $390,100

Liabilities

Accounts payable $15,600

Utilities payable $6,000

Salaries payable $5,300

Notes payable $33,000

Total liabilities $59,900

Equity

Common stock $226,000

Retained earnings $104,200

Total equity $330,200

Total liabilities + equity $390,100

<h2>Statement of stockholders' equity</h2>

Common stock balance Jan. 2018 $168,000

Retained earnings balance Jan. 2018 $68,000

Net income <u> $58,000</u>

Sub-total $294,000

Common stocks issued $58,000

Distributed dividends <u> ($11,800)</u>

Subtotal $330,200

Common stock balance Dec. 2018 $226,000

Retained earnings balance Dec. 2018 $104,200

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2 years ago

Which situation best illustrates the effects of inflation?

Vlad1618 [11]

Answer: C: The cost of rice at a market rises by 20 percent over three years.

Explanation:

inflation is a measure of the rate of rising prices of goods and services in an economy.

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3 years ago

Directive leadership is thought to be less effective when employees have low levels of ability.

Rainbow [258]

FALSE. Directive leadership is thought to be less effective when employees have low levels of ability.

If employees have low levels of ability this is when they need directive leadership.

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3 years ago

Britney, a teenager, starts her own business of selling cupcakes to coffee shops and restaurants. she strives to increase either

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What the case in the question describes in terms of what Britney’s pricing objective is called sales-orientation. Sales-orientation means that <u>the business approach is to make profit by focusing on persuading people to buy their products instead of understanding what the customer actually requires. </u>

The contrast to this approach is called <em>market orientation</em>, where the business seeks to understand what the customer wants and needs and believe that the answer to this would mean increased profits and revenue for the company.

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3 years ago

You are the public relations director of a nonprofit hospital in a competitive market in a midsized city located in a metro area

makvit [3.9K]

Answer:

HIV AIDS is contagious disease. It is responsibility of the healthcare professionals to handle the person with special care. This virus spread quickly in the body of the victim and the person is often unaware of the disease due to very mild or no symptoms.

Explanation:

To: CEO

Park lane Hospital

Central London,

09 - 06 -2021.

Respected Sir,

It is to bring into your knowledge about the spread of HIV/AIDS in the city. The people are unaware about the disease spread and those infected are carrying disease to others. There should be campaign run by the hospital to inform people about the spread of this contagious disease and preventions measures.

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It is high time because if the spread will increase at the same rate then controlling the disease would become difficult.

Regards,

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2 years ago