Answer:
The correct answer is letter "B": It is taking deposits and progress payments.
Explanation:
Advance deposits and progress payments are the amount of money taken by an organization as part of the total amount charged for a good or service that is going to be provided. It is a form of endorsement that proves the buyer has a real intention in acquiring the good or service but also helps the organization to have immediate cash flow to pay for expenses such as the raw material that will be used for production (in the case of a good).
Answer: A higher interest rate.
Explanation: Most savings accounts do not have a high interest rate at the moment.
Product-service bundling is adding Value-added services to a firm's product offerings to create more value for the customer.
Answer:
a. Allowance for doubtful accounts = Unadjusted balance + Adjusted balance
= $10,500 + $110,000
= $120,500
b. i)The adjusted balance of accounts receivable shall be $2,150,000(adjusted debit balance)
ii) Adjusted balance = Bad debt expense - Unadjusted balance
= $120,500 - $10,500
= $110,000 (Adjusted credit balance)
iii) Adjusted bad debt expense = Unadjusted balance of allowance for doubtful accounts + Adjusted balance allowance for doubtful accounts
= $10,500 + $110,000
= $120,500 (Adjusted debit balance)
c. Net realizable value = Gross accounts receivable - Allowance for doubtful accounts
= $2,150,000 - $110,000
= $2,040,000
