Answer:
- Dr Bad Debt expense 6,000
- Cr Allowance for Doubtful Accounts account 6,000
Explanation:
The total estimated bad debts are $4,800 (= $80,000 x 6%). So the Allowance for Doubtful Accounts account ending balance should be $4,800. Since this account is a contra asset account, the ending balance should be $4,800 credited.
But currently the account has a $1,200 debit balance (it's like -$1,200), so the adjustment record must be = $4,800 + $1,200 = $6,000
That way the ending balance = $6,000 - $1,200 = $4,800
The journal entries should be:
- Dr Bad Debt expense 6,000
- Cr Allowance for Doubtful Accounts account 6,000
<span>Two oil shocks, an expansive monetary policy, and growing competition as Europe and Japan recovered from the devastation of World War II.
By the end of the decade, the country went into what came to be called
stagflation, a combination of no growth and rising inflation. In effect, the country had the worst of both worlds.
President Carter’s appointment of Paul Volcker as Federal Reserve Chair started the path to change. He restricted the money supply in a war that drove up unemployment but eventually tamed inflation.
The Reagan presidency started with cuts in spending and income taxes in what was called a ‘supply-side experiment.’
The intent was to stimulate saving, work, and investment. The emphasis that the supply-side approach put on incentives is now a more prominent part of economic thinking, but the experiment itself led to larger fiscal deficits.</span>
During the cooling off period, underwriters would be allowed to do all of the aforementioned except: b) advertise the issue.
<h3>Who is an
underwriter?</h3>
An underwriter can be defined as an individual or business firm that is saddled with the responsibility of evaluating and assuming another party's financial risk for an agreed amount of money (fee), which is often paid as a spread, commission, interest, or premium.
This ultimately implies that, an underwriter helps a lender (financial institution) in determining the level of risk associated with an issue.
As a general rule, underwriters would be allowed to do all of the following during the cooling off period:
- Take indications of interest.
- Distribute a preliminary prospectus.
In this context, we can reasonably infer and logically deduce that during the cooling off period, underwriters would only be allowed to do all of the aforementioned except distribute sale or advertise the issue.
Read more on underwriters here: brainly.com/question/28026586
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Answer:
c. $2,580
Explanation:
Calculation for What was its net operating working capital that was financed by investors
Current assets $3,300
Less Accounts payable ($575)
Less Accrued wages and taxes ($145)
Net operating working capital $2,580
($3,300-$575-$145)
Therefore What was its net operating working capital that was financed by investors will be $2,580
