Answer:
The bad debt expense amount to $4,400
Explanation:
Bad debt expense is the expense which is not recovered by the business in the future.
The amount of bad debt expense would be computed as:
Bad debt expense = 1% of Accounts receivable + Debit balance of allowance for doubtful accounts
where
Accounts receivable is $400,000
Debit balance of allowance for doubtful accounts is $400
Putting the values above:
Bad debt expense = $400,000 × 1% + $400
= $4,000 + $400
= $4,400
Answer:
C. Is available for qualifying expenses paid on behalf of the taxpayer and his or her spouse, in addition to those paid for dependents
Explanation:
American Opportunity tax credit was called the HOPE credit. It is available for the first four years of an individual's post secondary school education.
It covers 100% of the first $2,000 cost for tuition, fees, books, and course material.
Items that do not qualify are room and board, transportation cost and personal expenses.
The tax credit is available for qualifying expenses paid on behalf of the taxpayer and his or her spouse, in addition to those paid for dependents.
If this is a true or false question, this is false. Numerous awards in a great variety could be awarded to a student.
I hope this helped!
Answer:
A web streaming company fulfills a 12-month service term paid by customers in advance.
Explanation:
Revenue is recognized from services rendered or goods delivered. It is recognized only when the risk and reward is transferred, further it relates to the normal business of company.
As in the first sentence the company makes scientific devices and it sales an agricultural land, that is sale of fixed asset.
In second case the pharmaceutical company receives donation which is anonymous.
All the things are not revenue for company.
It is only the web streaming company which shall recognize revenue as the services are rendered and revenue shall be recognized related to normal business of company.
Answer:
$ 97,900
Explanation:
ASSETS = LIABILITIES + OWNERS CAPITAL ( Equity)