The best answer choice is D.
Answer:
The company needs to borrow $25000 and option B is the correct answer.
Explanation:
If the ending amount of cash for the year is less than the desired ending balance, then the company will need to borrow to maintain the desired level of cash balance.
To calculate the amount needed to be borrowed, we first compute the ending cash balance for December. The ending cash balance will be,
Closing Balance = Opening Balance + Receipts - Payments
Closing Balance - December = 14000 + 127000 - 126000
Closing Balance - December = $15000
The difference between the closing cash balance and the desired closing cash balance is the amount that the firm will need to borrow.
Amount need to be borrowed = 40000 - 15000 = $25000
This indicates that the society is using resources efficiently and effectively. This is because all economies tend to go towards the equilibrium and if they don't, that's bad for the economy.
The answer would be Health and Government, I believe.
Answer:
$17,000
Explanation:
The amount of the Allowance for Bad Debts account after adjustment is shown below:
= Debit balance of Allowance for Bad Debts account + uncollectible accounts
= $7,000 + $10,000
= $17,000
The journal entry is also shown for better understanding
Bad debt expense A/c Dr $17,000
To Allowance for doubtful debts $17,000
(Being bad debt expense is recorded)
