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ad-work [718]
3 years ago
13

Myrtle Beach Pro-Shop receives information that requires the company to increase its expectations of uncollectible accounts rece

ivable. Which of the following does not occur on the company’s financial statements?a. Bad debt expense is increasedb. Accounts receivables (gross) is reducedc. Net income is reducedd. The allowance account is increasede. None of the above
Business
1 answer:
Lera25 [3.4K]3 years ago
3 0

Answer:

b. Accounts receivables (gross) is reduced

Explanation:

As we know that

The journal entry to record the bad debt expense is  

Bad debt expense A/c Dr

  To Allowance for doubtful debts

(Being allowance of uncollectible accounts are recorded)

By passing this journal entry, both bad debt expense and the allowance for doubtful debts which result in a decrease in the net income and the balance of account receivable but the gross of account receivable would remain the same.

You might be interested in
he most recent financial statements for Bello Co. are shown here: Income Statement Balance Sheet Sales $ 18,900 Current assets $
Pavel [41]

Answer:

9.69%

Explanation:

Given the following :

Net income = $4819

Total asset = $38,200

Taxable income = $6,100

Dividend payout ratio = 30% = 0.3

The internal growth rate is calculated thus ;

(Return on asset × Retention ratio)/[1-(Return on asset × Retention ratio)]

Return on asset = (Net income / total asset)

Return on asset = ($4,819 / $38,200)

Return on asset = 0.12615

Retention ratio = 1 - Dividend payout ratio

Retention ratio = 1 - 0.3 = 0.7

Hence internal growth rate :

(0.12615 × 0.7) / 1 - (0.12615 × 0.7)

0.088305 / 1 - 0.088305

0.088305 / 0.911695

= 0.0968580

= 0.0968580 × 100%

= 9.685%

= 9.69% ( 2 decimal places)

6 0
3 years ago
When cisco systems inc. of san jose, california, and tata consultancy services of mumbai, india, entered into their __________,
ser-zykov [4K]
Strategic aliance is collaborative relationship between independent firms. Though this relationship the partnering firms  do not invest in one another, which means <span>do not create an equity partnership</span>
<span>Example is when Cisco systems inc. of San Jose, California, and Tata consultancy services of Mumbai, India, entered into their strategic aliance.  They both continued to develop market-ready infrastructure and network solutions for customers, but they relied on each other to provide the training and skills that one or the other might have lacked.</span>
3 0
4 years ago
The "sticky wage" theory states that …
Umnica [9.8K]

Answer:

c. wages may stay at above-equilibrium levels for an extended period of time, thus keeping unemployment high.

Explanation:

Sticky wage theory -

According to this theory , the payment of the employees have a slow response for the change in the performance of the company or the economy .

From this theory , as the unemployment increases ,  the wages of the employed candidates tends to remain same or increases very slowly due to to decrease in the demand of the labor .

In this case , the wages are sticky - down , as they move up easily but get down with difficulty .

4 0
3 years ago
Company had 200 units of inventory on hand at the end of the year. These were recorded at a cost of $12 each using the last-in,
Georgia [21]

Answer:

Debited by $400

Explanation:

Calculation for the Cost of Goods Sold

Using this formula

Cost of Goods Sold= Inventory on hand*(Cost-Current replacement cost)

Let plug in the formula

Cost of Goods Sold=200 units * ($12 - $10)

Cost of Goods Sold= 200 units*2

Cost of Goods Sold = $400 Debited

Therefore the Cost of Goods Sold will be:$400 Debited

8 0
4 years ago
At the very least, Joe Average and Bill Gates are both identically limited by:
shusha [124]

Answer:

The correct answer is option 'B': The 24 hours that comprise a day

Explanation:

For comparison between 2 random variables only those values can be said to be identical that have the same values.

From the given options if we compare Joe and Bill Gates we conclude

1) The 2 person's are not identically limited by wealth as the wealth difference can be large.

2) Similarly they can have a vast difference in their knowledge.

3) Person that has larger wealth and knowledge will naturally have larger influence.

Now since the length of a day is 24 hours and this is a universal truth no matter what the circumstances we conclude that they both are limited by this parameter no matter whatever be the difference between the 2.

4 0
3 years ago
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