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Ket [755]
3 years ago
12

An aging of a company's accounts receivable indicates that $8,000 are estimated to be uncollectible. If Allowance for Doubtful A

ccounts has a $1,100 credit balance, the adjustment to record bad debts for the period will require a a. debit to Bad Debts Expense for $8,000. b. debit to Allowance for Doubtful Accounts for $6,900. c. debit to Bad Debts Expense for $6,900. d. credit to Allowance for Doubtful Accounts for $8,000.
Business
1 answer:
joja [24]3 years ago
7 0

Answer:

c. debit to Bad Debts Expense for $6,900.

Explanation:

Allowance for Doubtful Accounts  $1,100 credit balance,

Estimated Un collectibles                $8000 credit

Required Adjustment                    $ 6900 credit

The adjustment to record bad debts for the period will require a

c. debit to Bad Debts Expense for $6,900.

Bad Debt Expense $ 6900 Dr

Allowance for Doubtful Accounts $ 6900 Cr

Alternatively if the allowance account had a debit balance the entry would have been posted adding the two amounts.

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Does unemployment affect demand?<br>​
Ivahew [28]

Yes it does. Unemployment is when a person isn't currently hired at a work pleace. If people are unemployed they are making no income so less people are in need of products so it lowers the demand.

6 0
3 years ago
Jean says to Joan, "If you'll promise to feed my dog each day while I am out of town next week, I'll pay you $100." Joan replies
blsea [12.9K]

Answer:

When Joan said that she would feed Jean's dog

Explanation:

A verbal contract comes into existence when there is a proposal and the person who receives the offer accepts the conditions. When the offeror and the offeree comes into a verbal agreement (terms and conditions) the speaking acceptance becomes the contract into reality.

3 0
3 years ago
Fortune, Inc., is preparing its master budget for the first quarter. The company sells a single product at a price of S25 per un
alukav5142 [94]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Selling price= $25 per unit.

Sales (in units):

January= 45,000

February= 55,000

March= 50,000

The cost of goods sold is $14 per unit.

The gross profit is calculated using the following formula:

Gross profit= selling price - cost of goods sold

January:

Sales= 45,000*25= 1,125,000

COGS= 45,000*14= (630,000)

Gross profit= 525,000

February:

Sales= 55,000*25= 1,375,000

COGS= 55,000*14= (770,000)

Gross profit= 605,000

March:

Sales= 50,000*25= 1,250,000

COGS= 50,000*14= (700,000)

Gross profit= 550,000

5 0
3 years ago
Imagine that you borrow $1,000 for one year and at the end of the year you repay the $1,000 plus $100 of interest. If the inflat
brilliants [131]

Answer:

3%

Explanation:

Data provided as per the question

Nominal interest rate = 100%

Inflation rate = 7%

The computation of the real interest rate is shown below:-

Real interest rate = Nominal interest rate - Inflation rate

= 10% - 7%

= 3%

Therefore, for computing the real interest rate we simply deduct the inflation rate from the nominal interest rate.

7 0
3 years ago
If nominal wages fall which of the following will occur in the short run? The SRAS curve will shift to the right The SRAS curve
bixtya [17]

Answer:

The SRAS curve will shift to the right.

Explanation:

A decline in nominal wages will reduce the cost of hiring labor. The overall cost of production will reduce as well. The firms will be able to increase production and investment.  

This increase in production and investment will increase the aggregate supply. As a result, the short-run aggregate supply curve will move to the right. This will cause the equilibrium price to fall and the equilibrium quantity to increase.

7 0
3 years ago
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