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ryzh [129]
3 years ago
14

If the direct write-off method of accounting for uncollectible receivables is used, what general ledger account is credited to w

rite off a customer’s account as uncollectible? A. Uncollectible Accounts ExpenseB. Accounts ReceivableC. Allowance for Doubtful AccountsD. Interest Expense
Business
1 answer:
Olin [163]3 years ago
3 0

Answer:

Option B) Accounts Receivable

Explanation:

In the Direct write-off method the company registered an entry that debit  Bad Debts Expense and an credit entry in the Accounts Receivable.

In this method doesn't exist a contra asset account such as  Allowance for Doubtful Accounts, the Bad Debt Expenses are reported on the Income Statement one year later of the sale.

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On January 1, Year 1, the Accounts Receivable balance was $37,000 and the balance in the Allowance for Doubtful Accounts was $2,
Anestetic [448]

Answer:

The net realizable value of accounts receivable immediately after the write-off  is $33,400

Explanation:

Net realizable value of accounts receivable is the Amount that the Company expects to receive from its Account Receivables after accounting for Debts Written Off and Allowances for Doubtful debts

<u>Net realizable value of accounts receivable:</u>

Accounts Receivable                                         $37,000

<em>Less</em> Uncollectible accounts written-off              ($800)

<em>Less</em> Allowance for Doubtful Accounts            ($2,800)

Net realizable value of accounts receivable   $33,400

5 0
3 years ago
Read 2 more answers
An operating lease has unequal payments over the lease term. During the first year, the payment is $14,000; total payments over
Angelina_Jolie [31]

Answer: $8000

Explanation:

Amortization refers to the practice whereby the cost of an intangible asset is spread over the useful life of the asset. Amortization is used to lower the book value of an intangible asset or loan over a particular period of time.

Based on the information given in the question, the amortization of the right-to-use asset for year 1 should be:

= Installment - Interest

= $14000 - $6000

= $8000

4 0
3 years ago
What factor of production include human made resources used to produce a good or a service
storchak [24]

Answer

Capital

Explanation

Capital as a factor of production consists of tangible and intangible goods which are produced in the environment and utilized as inputs to further produce more goods and services. Human made resource such as money/wealth is used to produce more wealth by facilitating buying of capital equipment which aid in process of economic development.


4 0
3 years ago
Read 2 more answers
In 2015, the city of Berkeley instituted a tax on sugar-sweetened sodas. Suppose that the tax increased the price of a typical s
DedPeter [7]

Answer:

(g) Between 0 and -S7.5k because residents can substitute to other products

Explanation:

Data given in the question

Increase in price of typical soda = 10 cents

Total consumed = 150,000 sodas [er day

Dropped quantity = 75,000 sodas

So by considering the above information, the per day compensating variation of the tax varies from 0 and - 7,500

Since the sugar sweetened sodas is treated as a normal goods. Moreover, people can substitute the other goods also if there is an increase in a price of the good

The -7,500 is come from = (-75,000 × 0.10)

The options are as follows

(a) Greater than -$15k because soda is a luxury good with income (b) -$15k because that is the old consumption level times the value of the tax (c) Between -S7.5k and -$15k because soda is a luxury good elasticity > 1 with income elasticity >1 (d) Between -$7.5k arti -$15k because residents can substitute to other products (e) -$7.5k because that is the new consumption level times the value of the tax ()-$7.5k because that is the change in consumption times the value of the tax (g) Between 0 and -S7.5k because residents can substitute to other products (h) Between 0 and -$7.5k because because beverages are typically necessity goods with 6) Nothing because there was no effect on income G) It is impossible to say without knowing consumers' marginal rate of substitution income elasticity less than 1

8 0
4 years ago
Amerigo grew up speaking both English and Italian with his family, and he believes that knowledge of more than one language is a
alex41 [277]

Answer: B, Amerigo could work with school administrators, the principal, and private tutors to find the time, money, and classroom space for tutors to give after-school Italian lessons.

Explanation:

              Edge 2020.

4 0
3 years ago
Read 2 more answers
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