Answer:
$5,360
Explanation:
The adjusting entry is shown below:
Bad debt expense $5,360
To Allowance for doubtful debts $5,360
(Being the bad debt expense is recorded)
For recording this we debited the bad debt expense as it increased the expenses and credited the allowance for doubtful accounts as it reduced the assets
The computation is shown below:
= $91,000 × 5% + $810
= $5,360
Answer: C) Stock prices would only change on unexpected news
Explanation:
If the stock market was perfectly efficient, it would mean that all known information is already reflected in the stock price. This includes both historical and current data.
For the stock price to change therefore, there would have to be unexpected news that are not already accounted for in the price and so will force it to react positively or negatively.
<span>the terms of the sale are 15/15, n/30 indicates that the sales will include a 15% discount if the payment is finished within 15 days.
So, The net value of the payment in the 15th day would be:
$ 19,700 - (15% x $ 19,700)
= $ 19,700 - $ 2955
= $ 16,745</span>
