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3 years ago

The question of when revenue should be recognized on the income statement according to GAAP is addressed by the:

Business

1 answer:

sleet_krkn [62]3 years ago

4 0

Answer:

a. Revenue recognition principle

Explanation:

The revenue recognition principle refers to the principle in which the revenues are recorded when it is realized or earned. It follows the accrual basis of accounting

It is not recorded when the cash is actually received.

When the sale is made, the same is to be shown in the books of accounts

Therefore as per the GAAP, the revenue should be addressed by revenue recognition

hence, the correct option is a.

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Martin Services Company provides their employees vacation benefits and a defined contribution pension plan. Employees earned vac

Umnica [9.8K]

Answer:

Explanation:

a. Provide the journal entry for the vacation pay

Employees earned vacation pay of $39,500 for the period.

Debit Credit

Vacation pay expense A/C $39,500

Vacation payable A/C $39,500

(Being vacation pay accrued for periods)

b. Provide the journal entry for the pension benefit.

9% of employee salaries and the salaries were $750,000

=> The pension plan requires a contribution to the plan administrator: $750,000*9% = $67,500

Debit Credit

Pension expense $750,000

To cash A/C $67,500

To unfunded pension liabilities $683,500

Hope it will find you well.

7 0

3 years ago

The number of accidents that occur annually on a busy stretch of highway is an example of:

andrew11 [14]

I believe the answer to this question is "A discrete random variable".

8 0

3 years ago

Frictional unemployment occurs because in a world of imperfect information, it takes ________ for people to find jobs.

deff fn [24]

Because it takes time for people to find work in a society with poor information, frictional unemployment happens.

The unemployment that results from regular labor turnover, such as persons joining and leaving the labor force, as well as the continuous creation and destruction of jobs, is known as frictional unemployment. It comprises employees who are either looking for employment or holding out for a job soon.

Frictional unemployment has the following examples: employees looking for new jobs after quitting their existing ones, employees want to shift careers. Those looking for their first job after graduating from college or those starting their first career in the workforce.

To learn more about frictional unemployment

brainly.com/question/27108843

#SPJ4

6 0

2 years ago

Exercise 8-5 The ledger of Costello Company at the end of the current year shows Accounts Receivable $110,000; Sales Revenue $84

Nina [5.8K]

Answer:

Journal entries are shown below:

Explanation:

The journal entries are as follows

a. Bad debt expense $1,400

To Account receivable $1,400

(Being the bad debt expense is recorded)

b. Bad debt expense $8,900

To Allowance for doubtful accounts $8,900

(Being the bad debt expense is recorded)

The computation is shown below:

= $110,000 × 10% - $2,100

= $11,000 - $2,100

= $8,900

c. Bad debt expense $6,800

To Allowance for doubtful accounts $6,800

(Being the bad debt expense is recorded)

The computation is shown below:

= $110,000 × 6% + $200

= $6,600 + $200

= $6,800

4 0

3 years ago

Warner Corp. sells goods on account for $10,000 on April 2. On April 20, the customer returns $3,000 of the merchandise. The cus

Studentka2010 [4]

Explanation:

The journal entry are as follows

On April 20

Sales returns A/c Dr $3,000

To Account receivable A/c $3,000

(Being the sales returned of goods is recorded)

While recording this given transaction, we debited the sales return account and credited the account receivable account so that the proper posting could be done

6 0

3 years ago