Receivables not expected to be collected should not be counted in assets of the company.
<h3>Accounts Not Receivable</h3>
For bookkeeping purposes, When a company confirms that it is likely not to receive payment, it should be written off in the journal entries as a debit to allowance for doubtful accounts and then credited to accounts receivable.
Account Not Receivable or collected is regarded as bad debt expense.
Therefore Receivables not expected to be collected are not to be counted in assets of the company.
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Answer:
C) Debit Cash $2,750
Credit Accounts Receivable $2,750
Explanation:
When payment is received in respect of services rendered or goods sold in the past periods, the accounting rule is to debit cash or bank as the case may be and credit account receivable for the amount received. This is necessary because in period when transaction took place, revenue has been credited and account receivable debited.
Answer:
None of the above.
Total Income from operation increase. 12,500.00
Explanation:
- Purchase cost from outside
$ 10.00 Per unit
- Inter transfer purchase from Division A
$ 9.50 Per unit
$ 0.50 Per unit
- Number of units purchased from Division A
25.000 Units
Total Income from operation increases 12,500.00
Answer:
The correct answer is Three.
Explanation:
Opportunity cost is defined as what it costs us to decide on a decision and what it costs us to carry it out. In this case Esther produces 6 hamburgers per hour and Ebenezer 3; if it were decided to choose the latter, they would stop producing 3 hamburgers since Esther produces double. This would be the opportunity cost.
Answer:
Property rights allow consumers and producers to make free choices .
Explanation:
A free market in an economic system is solely based on the market forces of demand and supply with minimum government intervention.
Property right is the authority of ownership that determines how a property can be put to an efficient use , thereby promoting efficiency.
This is necessary in a free - market system as it allows consumers and producer to make free choices , as the intervention of the government is at the minimal level.