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brilliants [131]
3 years ago
11

Sofia bought a couch that required a $60 down payment and $60 per month for the next eight months. Which type of liability does

this describe?
a) a long term liability
b) a non liquid liability
c) a consumer liability
d) a current liability
Business
1 answer:
Anna35 [415]3 years ago
8 0
Answer should be d) a current liability
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Recently, the only type of car available for Anthony to rent on a business trip was a compact, fuel-efficient Japanese import. A
natulia [17]

Answer:

a.

Explanation:

According to my research on purchasing decisions and factors, I can say that based on the information provided within the question this is an example of how experience can narrow a customer's perceptions of the value of a product's differentiated features. Since after having hands on experience with the compact, fuel-efficient Japanese import, Anthony began to realize that the Luxury SUV's "value" wasn't really there or "worth it" in his opinion.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

7 0
3 years ago
Exercise 8-3
7nadin3 [17]

Answer:

(a) Prepare the entries to record sales and collections during the period.

  • It had net credit sales of $800,000  

Dr Accounts receivable $ 800,000

Cr Sales $ 800,000

  • Collections of $763,000.

Dr CASH $ 763,000

Cr Accounts receivable $ 763,000

(b) Prepare the entry to record the write-off of uncollectible accounts during the period.

  • It wrote off as uncollectible accounts receivable of $7,300  

Dr Allowance for Uncollectible Accounts $ 7,300

Cr Accounts receivable $ 7,300

(c) Prepare the entries to record the recovery of the uncollectible account during the period.

  • However, a $3,100 account previously written off as uncollectible was recovered before the end of the current period.  

Dr Accounts receivable $ 3,100

Cr Allowance for Uncollectible Accounts $ 3,100

(d) Prepare the entry to record bad debt expense for the period.

  • Uncollectible accounts are estimated to total $25,000 at the end of the period.  

Dr Bad Debt Expense $ 20,200

Cr Allowance for Uncollectible Accounts $ 20,200

Explanation:

If the company applies the allowance method, it means that the account Allowance for Uncollectible Accounts must show as balance the estimated value of $25,000

Because the company already has a CREDIT balance in the Allowance for Doubtful Accounts it's necessary to register an entry that complement the existing value and reflect the estimated value, $ 20,200  

Bad accounts are those credits granted by the company and there is no possibility of being charged.

When customers buy products on credits but the company cannot collect the debt, then it's necessary to cancel the unpaid invoice as uncollectible.

One way is to directly cancel bad debts at the time it was decided that the credit is bad, the total amount reported as bad debt expenses negatively affect the income statement and the accounts receivable are reduced by the same amount, less assets

The other way is to determine a percentage of the total amount of accounts receivable as bad debts, there are many ways to analyze accounts receivable and calculate the value of bad debts.

When the company has the percentage of uncollectible accounts, the required journal entry is Bad Expenses (debit) with Reserve for Bad Accounts (credit)

At the time of cancellation, since the expenses were recognized before, we only use the Allowance for Uncollectible Accounts (Debit)  with accounts receivable (credit), with this we are recognizing the bad credit of the company.

7 0
3 years ago
On November 1, 2018, Cullumber Farm entered into a contract to buy a $162000 harvester from John Deere. The contract required Cu
Vikki [24]

Answer:

The journal entry to record the contract on November 1, 2018 includes: credit to Accounts Receivable for $162000

Explanation:

Following the Accrual accounting - an accounting method that revenue or expenses are recorded when a transaction occurs rather than when payment is received or made. On November 1, 2018, Cullumber Farm had to pay $162,000 in advance to John Deere. John Deere recorded the cash receiving by the entry:

Debit Cash $162,000

Credit Accounts Receivable $162,000

The company did not record revenue because they did not sell the harvester. This was only the advance payment.

3 0
3 years ago
Suggest any three threats which businesses face as a result of climate change ?
Burka [1]

Climate change happens because of global warming, which is the result of over accumulated Carbon dioxide in the atmosphere trapping the sun’s rays in the earth. This is a threat in business because (1) any business related to carbon (oil, gas, electricity, etc) will be lessened, (2) <span>Different weather conditions, may damages buildings and other infrastructures and (3) might receive public threats questioning the company’s safety precautions.</span>

<span> </span>

8 0
3 years ago
George believes that Lillian is arrogant, because she is part of the LGP group. Because other members of the LGP group that Geor
slava [35]

Answer:

The correct answer is: The fallacy of composition.

Explanation:

The fallacy of composition refers to the usually mistaken idea that an individual has in which because a component of a whole is a certain way, the whole is that very certain way, too. The fallacy of composition is a simplified, subjective generalization that individuals come up with where there is not enough proof that the statement being provided is real.

Thus, <em>as George believes Lillian is arrogant because she is part of the LGP groups and George has met previous LGP members who are arrogant, he is assuming all LGP members are arrogant. George has fallen into the composition fallacy.</em>

5 0
3 years ago
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