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Ronch [10]
3 years ago
13

According to GAAP, the amount of bad debt expense can be estimated by: A. Only the percent of sales method. B. Only the percent

of accounts receivable method. C. Only by the aging of accounts receivable method. D. Only by the percent of sales method or the percent of accounts receivable method. E. Bad debt expense can be estimated by the percent of sales method, the percent of accounts receivable method, or by the aging of accounts receivable method.
Business
1 answer:
yarga [219]3 years ago
7 0

Answer:

E. Bad debt expense can be estimated by the percent of sales method, the percent of accounts receivable method, or by the aging of accounts receivable method.

Explanation:

The bad debt is an expense that is to be shown on the debit side of the income statement. It refers to the amount which is not collectible by the company due to partie bankruptcy

It can be estimated by the following methods using the Generally accepeted accounting principles (GAAP)

1. percent of accounts receivable method,

2. percent of sales method

3. the aging of accounts receivable method

Hence, the correct option is E.

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Answer:

I have had too many fake friends to be okay with them

Explanation:

7 0
3 years ago
Read 2 more answers
Pepe, Incorporated acquired 60% of Devin Company on January 1, 2018. On that date Devin sold equipment to Pepe for $45,000. The
CaHeK987 [17]

Answer: $9000

Explanation:

Based on the values given in the question, the consolidated gain or loss on equipment for 2018 would be calculated as:

Cost of equipment = $120,000

Less accumulated depreciation = $66,000

Less: Amount Devin sold equipment to Pepe = $45,000

Consolidated loss= $120,000 - $66000 - $45000

= $9000

8 0
3 years ago
Each firm can produce at most one car. Suppose the market for electric cars is competitive. Why is the equilibrium price in this
lisabon 2012 [21]

Answer:

Consumer surplus = (60000 - 40000)+ (90000 - 40000)+(40000 - 40000) = $70000

Producer surplus = (40000 - 20000)+(40000 - 30000)+ (40000 - 40000) = $30000

Social surplus = Consumer surplus +Producer Surplus= 70000 + 30000 = $100000

Consumer surplus = (Willingness to pay – Price)

Producer surplus = ( Price –Cost)

7 0
3 years ago
"Maple Corp. had net sales of​ $217,550 for the year ended December​ 31, 2017. Its beginning and ending total assets were​ $94,2
BaLLatris [955]

Answer:

2.09

Explanation:

Asset ratio is  a business tool used to measure the efficiency of assets towards sales generation by comparing net sales to average total assets.

It is calculated by dividing the net sales by average total assets.

The average total assets is used in order to make allowance for fluctuation in the course of business year

<u>Workings</u>

Net sales = $217550

Opening total asset = $94200

Closing Total assets = $ 113500

Asset ratio turnover = 217550/(94200+113500)/2

=2.09

7 0
3 years ago
Define what is meant by the phrase "planning materiality threshold"
xz_007 [3.2K]
<span>Define what is meant by the phrase "planning materiality threshold".

Planning materiality threshold is defined as the complete materiality level for the financial statements in internal control. The auditor will establish a materiality level that is best based on the situation regarding the nature, extent and timing of the audit procedures. </span>
7 0
3 years ago
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