Answer:
true
Explanation:
acid test ratio can be calculate by ( Current assets – Inventory ) / Current liabilities. Ideally, the acid test ratio should be 1:1 or higher, however this varies widely by industry. In general, the higher the ratio, the greater the company's liquidity. by selling up equipment in exchange of cash, the will assist the company to be able to handle its current liability with the cash injection into the entity.
Answer:
The December 31st balance in Allowance for Doubtful Accounts, after the AJE is $69,600
Explanation:
Allowance for doubtful debts is a provision created by the entity for those Accounts Receivables for which settlement may never be received.
Juan, Inc. estimates bad debt expense as 2% of Accounts Receivable for the year
Therefore Provision for allowance for doubtful debts is $3,480,000 × 2% = $69600
Marginal and Variables are the blanks! It was hard for me to find too!!