Answer: The correct answer is b. debit to Bad Debts Expense for $1,800.
Explanation: The company adopts the aging bad debt method on receivable. The aging method is a way of classifying receivables as uncollectible based on the length of time the receivables have been outstanding and the probability of recoverability of such receivables.
To make a provision for bad debt expense: debit is passed to bad debt expense while credit is passed to allowance for doubtful accounts. The bad debt expense reports to the income statement while allowance for doubtful accounts reports to the balance sheet (statement of financial position). Based on the question, the allowance for doubtful accounts has a credit balance of $1,200; however, $3,000 was estimated to be uncollectible. In order to restate the amount to $3,000, we need to debit bad debt expense and credit allowance for doubtful accounts with $1,800 ($3,000 - $1,200).
Answer:
Tax return preparers may generally rely on a client's representations without verification unless the information seems incorrect, inconsistent, or incomplete, Option A.
Explanation:
A "tax return preparer" usually relies in good faith without verification upon information furnished by a taxpayer or another advisor or third party. But he has the authority to make inquires in case he feels the information given is incomplete or inconsistent. Also, some of the provisions also require few circumstances or facts to be claimed before deduction is made. So, A tax return preparer should make relevant inquiries to decide if the information given is correct as required by an "Internal Revenue Code" section or a regulation to claim either a deduction or a credit.
Answer:
The establishment of social welfare programs.
Explanation:
This is the answer for Ap3x.
Answer:
That is why i did not play this game.
Explanation:
Lets i have initially $100 .
There are 2 white and 3 black balls.
I have to draw 3 balls
If i draw no white balls, i lose $10; if i draw one white ball, i lose nothing; and if i draw both white balls, you gain $10.
So the final fortune =x
x = 100 x 1/2 x 1/2 x 3/2 x 3/2
x= $56.25
That is why i did not play this game.
Answer:
The correct answer is D
Explanation:
Normal profit also called as the fair return, which means staying in the business without subsidy, higher social welfare, price exceeds the marginal costs and there is no reason for the monopolist to the cut the costs.
Thus, the general problem with adopting or acquire the normal normal profit pricing for the natural monopoly, is that it is not efficiently allocative.
Allocative efficiency states a situation or a condition in which the output of every product is such that that marginal cost and the market price are equal or vice- versa.
