Answer:
DR Bad Debts Expense $11,750
CR Accounts Receivable $11,750
<em>(To record accounts receivable written off)</em>
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Explanation;
Direct method of writing off involves removing the bad debt directly from the Accounts Receivable account instead of using the Allowance for Doubtful debt account.
Answer:
The correct answer is option 4.
Explanation:
The banks do not hold any excess reserves.
The required reserve ratio is 20%.
Sarah deposits $5,000 in cash in her checking account.
The banks reserves will increase by
= $5,000 - 20% of $5,000
= $5,000 - $1,000
= $4,000
This will cause the money supply to increase by
=
=
= $20,000
Answer: Short run decision
Explanation: In economics, the time period of a business organization in which one factor of production is fixed while the others are variable is called short run decisions.
In short run period, if the firm wants to increase its output potentially it can do so by increasing the variable factors amount.
As in the given case, Boeing is increasing its jetliners by increasing the time period, that is a variable factor.
Hence we can conclude that it is a short run decision.
The best answers for this statement would be:
b.taxes; legal liability
Taxes – the business structure that you decide will also
decide on how much the tax that you will pay will cost. It will have effects on
the kinds tax you must pay.
Legal Liability – This should be an advantage because you
need protection from your personal assets.