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pshichka [43]
3 years ago
9

An aging of a company’s accounts receivable indicates that estimate of the uncollectible accounts totals $4,000. If Allowance fo

r Doubtful Accounts has a $800 credit balance, the adjustment to record the bad debt expense for the period will require aA. debit to Allowance for Doubtful Accounts for $3,200.B. debit to Bad Debt Expense for $3,200.C. debit to Allowance for Doubtful Accounts for $4,000.D. credit to Allowance for Doubtful Accounts for $4,000
Business
1 answer:
FinnZ [79.3K]3 years ago
5 0

Answer:

B. debit to Bad Debt Expense for $3,200.

Explanation:

In the given question, the total of uncollectible accounts is $4,000 and the allowance for doubtful accounts has an $800 credit balance. The remaining amount which is left i.e $3,200 ($4,000 - $800) is debited to bad debt expense

The journal entry is shown below:

Bad debt expense A/c Dr  $3,200

     To Allowance for Doubtful Accounts $3,200

(Being bad debt expense recorded)

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6 0
3 years ago
Suppose the economy is experiencing an output gap of –3%. a. Select each response that indicates how monetary policy or fiscal p
igor_vitrenko [27]

Answer:

Suppose the economy is experiencing an output gap of –3%

a. Monetary policy or fiscal policy can be used to raise actual output toward potential output when:

The government can increase its spending or reduce taxes, which will shift the IS curve to the right and increase GDP.

The Fed can reduce the interest rate, which will shift the MP curve down and increase GDP.

b. The policies identified in part a,

can be used together to raise actual output toward potential output.

Explanation:

Investment-Savings (IS) curve shows all the levels of interest rates and output (GDP) at which an economy's total desired investment (I) equals its total desired saving (S).  This equilibrium can be achieved at a level of interest rate that maximizes output.  The IS curve slopes downward, and to the right because at a lower interest rate, investment is higher, which produces more total output (GDP) for the economy.

7 0
3 years ago
Lauren is the owner of a bakery. Last year, her total revenue was $145,000, her rent was $12,000, her labor costs were $65,000,
Eddi Din [679]

Answer:

So if you subtract the cost of everything for her bakery she still comes out with making 53,000, so if she left she would not earn any profit because she would be making the same.

7 0
3 years ago
Cash paid to retire notes $ 112​ Common shares acquired for treasury 172​ Proceeds from issuance of preferred stock 254​ Proceed
arsen [322]

Answer:

$176 million

Explanation:

The calculation of net cash inflows from financing activities is shown below:-

Net cash inflows from financing activities

Proceeds from issuance of preferred stock $254 million

Proceeds from issuance of subordinated  bonds $292 million

Less: Cash dividends paid on preferred stock (86) million

Less: Cash paid to retire note ($112) million

Less: Common shares acquired for treasury (172) million

Net cash inflows from financing activities $176 million

The positive sign represents the cash inflow and the negative sign represents the cash outflow

6 0
4 years ago
Ashley, a purchasing manager, tells Franklin, the human resource manager, that she has selected a candidate to be her purchasing
ale4655 [162]

Franklin replies that Ashley should add information about the job responsibilities, work schedule, and starting date.

<u>Explanation:</u>

The job offer letter is delivered by the authority to permit and ask an individual officially to join the firm or an organization under given time period by responding in respective manner. This offer letter for job joining carry various basic information like

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4 0
3 years ago
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