Answer:
a. Journal entry
b. $18,150
c. $586,850
Explanation:
a. The adjusting journal entry is as follows
Bad debt expense A/c Dr
To Allowance for doubtful debts
(Being bad debt expense is recorded)\
The computation of the bad debt expense is shown below:
= Account receivable × estimated percentage given + debit balance of allowance for uncollectible accounts
= $605,000 × 3% + $4,700
= $18,150 + $4,700
= $22,850
b. The adjusted balance in Allowance for Doubtful Accounts is $18,150
c. The cash realizable value is
= $605,0000 - $18,150
= $586,850
A continuous decrease in the level of prices over time is called deflation. It involves the contraction of the supply of money in an economy. The opposite of such is inflation. During this time, the power of the currency and the wages are high than what is normal. It causes for capital, goods, services and labor costs to be lower. Monetary deflation can be caused by the decrease in supply of money or instruments that can be redeemed by money. In present, the supply of money is influenced by the central bank of each nation. Price deflation can be caused by a decrease in the demand of the goods and services and also increase in the productivity of the economy.
In my own words, i’d say conformance means people following and complying with rules, standards, and laws.
hope this helps :)
