1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
sammy [17]
3 years ago
10

The direct write-off method: multiple choice follows the expense recognition (matching) principle. Is not permitted under GAAP.

is permitted if results are similar to the allowance method. Is permitted if results are not similar to the allowance method.
Business
1 answer:
Lera25 [3.4K]3 years ago
4 0

Answer: is permitted if results are similar to the allowance method

Explanation:

The direct write-off method is refered to as an accounting method whereby the uncollectible accounts receivable are being written off as bad debt. Here, the bad debts expense account will be debited while the accounts receivable will be credited.

The direct write-off method is permitted if results are similar to the allowance method. For the allowance method, it should be noted that an estimation of the bad debt future amount will be charged to the reserve account once the sale takes place.

You might be interested in
yeloe corporation sells 400 shares of common stock being held as an investment. The shares were acquired six months ago at a cos
Keith_Richards [23]

Answer:

Entry is given below

Explanation:

Bought shares 6 months ago = 400shares x $60/share

Bought shares 6 months ago = $24,000

Sold shares = 400shares x $40/share

Sold shares = $16,000

Loss on sales proceeds  = $24,000 - $16,000

Loss on sales proceeds = $8,000

Entry:

                                      DEBIT        CREDIT

Cash                              $16,000

Loss on sale                  $8,000

Shares                                               $24,000

8 0
3 years ago
Selected transactions from the journal of Metlock Inc. during its first month of operations are presented here:
Akimi4 [234]

Answer:

Metlock, Inc.

T-accounts:

Common Stock

Date     Account Titles       Debit   Credit

Aug. 1   Common Stock   9,000

Cash

Date     Account Titles          Debit   Credit

Aug. 1   Common Stock                    9,000

Aug. 10 Service Revenue     1,400

Aug. 12 Equipment                           1,540

Aug. 31 Accounts receivable 750

Service Revenue

Date     Account Titles       Debit   Credit

Aug. 10 Cash                                  1,400

Aug. 25 Accounts receivable      2,570

Equipment

Date     Account Titles       Debit   Credit

Aug. 12  Cash                     1,540

            Notes Payable    4,060

Accounts Receivable

Date       Account Titles       Debit   Credit

Aug. 25   Service Revenue  2,570

Aug. 31    Cash                                   750

Explanation:

Common stock of $9,000 was posted on the debit side as it appeared first.  This follows the normal order of recording transactions in the journal.  The accounts to be debited are recorded first before the accounts to be credited.  However, this entry appears abnormal.  Cash of $9,000 should have appeared first in the journal before the Common Stock.  Whichever is the correct interpretation, all the journal entries have been posted to the T-accounts accordingly.

6 0
3 years ago
Diversity of the planning group: A. Requires the group leader to control of decision making and action planning. B. Makes it dif
lana66690 [7]

Option C. Diversity of the planning group: Often results in more comprehensive and creative planning.

<h3>What is diversity?</h3>

This is the term that is used to refer to a group that is made up of people that are from different cultures, areas and fields.

In such a group there is the tendency for creativity if they are able to work together and share ideas.

Read more on diversity here:

brainly.com/question/7170490

#SPJ1

8 0
1 year ago
There was a tremendous drought in California, where the majority of lettuce is grown for the United States. Lettuce is vitally n
kari74 [83]

Answer:

There was a tremendous drought in California, where the majority of lettuce is grown for the United States. Lettuce is vitally needed to make delicious tacos for Taco Tuesday. As a result of the drought, the price of lettuce used to produce tacos doubles.People get tired of eating tacos on Tuesday and switch to eating lasagna. What happens to lettuce in the short term? reduction in demand and supply which affects the price, such inflation of price would reduce the demand

Explanation:

5 0
3 years ago
Lake Power Sports sells jet skis and other powered recreational equipment. Customers pay 1/3 of the sales price of a jet ski whe
vladimir1956 [14]

Answer:

1) In 2010, Lake would recognize realized gross profit of:______.

a) $0.

Revenue for calculating gross profit is only recognized when the cost of goods sold (COGS) has been fully recovered.

2) In 2012, Lake would recognize a realized gross profit of:_______.

c) $450,000.

gross profit related to 2010 sales = $900,000 - $450,000 (remaining COGS) = $450,000

gross profit related to 2011 sales = $900,000 - $900,000 = $0

3) In 2013, Lake would record a lost on repossessions of:______.

c) $200,000.

4) In its December 31, 2011, balance sheet, Lake would report:_______.

b) installment receivables (net) of $900,000.

total installments receivables = $300,000 + $1,000,000 = $1,300,000

remaining COGS from 2011 sales = $400,000

installment receivables (net) = $1,300,000 - $400,000 = $900,000

7 0
3 years ago
Other questions:
  • An investor is analyzing a three-unit property by looking at its ability to produce future income. What would most likely be use
    14·1 answer
  • In the past, how have you handled receiving conflicting instructions from different people at the same time?
    14·1 answer
  • Hello im Michal the fox how may tails i have three,two or,four
    8·2 answers
  • Which of the following types of business usually has the fastest inventory
    10·2 answers
  • Given the total fixed-cost curve in gray and the total variable-cost curve in color, draw the total cost curve. Three points on
    13·1 answer
  • Carla Corporation was organized on January 1, 2014. It is authorized to issue 10,000 shares of 8%, $100 par value preferred stoc
    13·1 answer
  • Feature of deligation of authority​
    10·1 answer
  • Because of the compounding effect:
    11·1 answer
  • Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses a
    6·1 answer
  • Measured productivity growth for the United States declined following the Great Recession. That measured productivity has failed
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!