Answer:
The answer is B.
Explanation:
A budget surplus occurs when government revenue(tax receipts) are greater than government spending.
And a budget deficit occurs when government spending are greater than government revenue(tax receipts.
Government debt is the total amount of debt that a country is owing its creditors(providers of funds).
Surplus is entirely different from government debt. Nothing is said in the question that the debt was repaid.
Therefore, the government debt still remains $540 billion
154,500×0.04=6,180
Adjusted balance
6,180−1,165=5,015
Journal entry
Bad debt expenses (Dr 5015)
Allowance for doubtful accounts (Cr 5015)
Answer:
12,560 allowancwe for doubtful accounts
Explanation:
The company will recognize an allowance for 2% of the credit saleS:
678,000 x 2% = 13,560
Now, we write-off for 1,000 this decrease the allowance
Thhs, the balance will be for the difference
13,560 - 1,000 = 12,560