The Adjustment entry to record the estimated bad debts include debit to Bad Debt Expense of $900 and credit to Allowance for Doubtful Accounts of $900. Thus 2nd and 5th options are correct.
<h3>What is Bad debt?</h3>
Bad Debt refers to the amount of loan which cannot be recovered. It is an outstanding balance which is irrecoverable. Thus in simply words it means the amount which will not be paid by the customer.
According to the given question, The credit balance is $100 in Allowance for Doubtful Accounts.
The credit sales method a specific percentage of credit sales represent bad debts of the previous period. Thus the difference amount comes under Allowance for Doubtful Accounts.
Journal Entry for the estimated bad debts is as follows:
DR. BAD DEBT EXPENSE $900
To CR. ALLOWANCE FOR DOUBTFUL ACCOUNTS $900
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Answer:
The likely problems to be encountered by Roberts include the following below:
b. the operating characteristics of firms across different industries vary significantly resulting in very different ratio values.
d. caution must be exercised when comparing older to newer firms,
e.g., utility company vs. software company?
c. the four companies are in very different industries.
Explanation:
Answer:
The correct answer is: a macro-segment.
Explanation:
The Market Opportunity Analysis or MOA is a tool used to identify market opportunities and measure them to determine if they can be profitable for the company before the firm starts planning to work with it. The MOA implements segmentation to classify as specific as possible the product that is intended to be offered.
Micro-segments refer to products with narrow scopes while macro-segment products have wider reach and variability inherent. Thus, in the example, <em>ales represent the macro-segment since it has varieties such as brown ale, pale ale, golden ale, Scotch ale, and mild ale just to mention a few.</em>
Answer:
Variable Costs : Supervisory $5,000
Fixed Costs : Salaries $5,000
Mixed Cost : Maintenance $4,000
Explanation:
Variable Costs
These costs vary in direct proportion with the amount of production.
Examples : Materials and Labor
Fixed Costs
Theses costs do not vary with amount of production but stays the same in the relevant range.
Examples : Salaries of Mangers
Mixed Costs
These contain a variable cost element and a fixed cost element
Examples : Telephone Bill and Maintenance Costs
Answer:
Defection rate, or costumer defection rate is one of the major factors due to which a company can hit rock bottom. The costumer defection rate can be defined as the rate at which the existing costumers of a certain company leave a brand, to switch over a competitor, or stop using that certain type of product all together. If the marketers are considering the defection rate of a market segment, it means that they are considering the rate at which costumers are leaving a brand to join another, or leaving that market all together.
