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anzhelika [568]
3 years ago
9

Lina Co. uses the allowance method to account for bad debts. On January 28, Lina determines that a $200 balance from ZRT, Inc. i

s uncollectible and writes the balance off. The journal entry to write this balance off will include a: (Check all that apply.)
a) debit to Bad Debts Expense.
b) credit to Allowance for Doubtful Accounts.
c) credit to Accounts Receivable - ZRT.
d) debit to Accounts Receivable - ZRT.
e) credit to Bad Debts Expense.
f) debit to Allowance for Doubtful Accounts.
Business
1 answer:
elena55 [62]3 years ago
4 0

Answer:

c) credit to Accounts Receivable - ZRT.

f) debit to Allowance for Doubtful Accounts.

Explanation:

As for the information provided,

We know in allowance method, provision is created as and when there are doubtful debts, for which entry is

Bad Debts Expense Account Dr.

To Allowance for doubtful debts.

And when the bad debts are actually written off then,

The entry will reduce the balance of accounts receivables and that of allowance as well.

Entry will be:

Allowance for Doubtful debts A/c Dr.

To Accounts Receivables.

Thus, correct options shall be:

Option c) and f)

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Uninsured motorists. Make sure you have it.
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A drought in California destroys many red grapes. As a result of the drought, the consumer surplus in the market for red grapes
Ira Lisetskai [31]

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B

Explanation:

because if you raise it high enough you can get less people to buy seen it in a lot of places

4 0
3 years ago
True or False: This indicates that there is excess capacity in the market for bats. True False Monopolistic competition may also
KonstantinChe [14]

Answer:

False

False

Explanation:

Monopolistic competition is a type of imperfect market where there are many seller competing with each other but with differentiated products. Monopolistic competition is socially inefficient. The product variety externality implies that there is too little entry of new firms in the market.

3 0
2 years ago
Tanek Corp.’s sales slumped badly in 2017. For the first time in its history, it operated at a loss. The company’s income statem
Levart [38]

Answer:

a) Break-even point in dollar for 2017

Contribution margin ratio = Contribution Margin/Sales

C.M Ratio = (Sales - Variable Cost)/Sales

C.M Ratio = $(2,500,000-1,750,000)/2,500,000

C.M Ratio = 0.30 or 30%

Break-even point in dollars = Fixed expense/C.M Ratio

B-E point ($) = $850,000/0.30

= $2,833,333.33

<u>Alternative 1</u>

<em>Sales Price per unit after increasing 20%,</em>

Sales Price = ($5*0.2) + $5 = $6

Total Sales ($) = (Sales Price x Sales Units)

Total Sales ($) = ($6*500,000) =$3,000,000

Contribution margin ratio = Contribution Margin/Sales

C.M Ratio = ($3,000,000- $1,750,000)/$3,000,000

C.M Ratio = 0.42 or 42%

Break-even point in dollars = Fixed expense/C.M Ratio

B-E point ($) = $850,000/0.42

= $2,023,809.52

<u>Alternative 2</u>

<em>Commission</em> = $2,500,000*5% = $125,000

Change in fixed annual salaries = $150,000-$60,000 = $90,000

Total fixed costs after deducting the changes in fixed salaries = $850,000-$90,000 = $760,000

Contribution margin ratio = Contribution Margin/Sales

C.M Ratio = (Sales - Variable Cost - Commission on sales)/Sales

C.M Ratio = ($2,500,000-$1,750,000-$125,000)/$2,500,000

C.M Ratio = 0.25 or 25%

Explanation:

Sales = $2,500,000

Sales Unit = $2,500,000/500,000 = $5

Variable Cost = 1,750,000

Fixed costs = $850,000

7 0
3 years ago
Which category would be the combination of employee benefits in payment for under
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The category would be,

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2.) Medical Allowance

3.) Conveyance Allowance

4.)Basic Salary


8 0
3 years ago
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