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Kryger [21]
4 years ago
15

Searcy has accounts receivable of $700,000 and an allowance for doubtful accounts of $54,000. On January 24, 2020, it is learned

that the company’s receivable from Hutley Inc. is not collectible and therefore management authorized a write-off of $8,000. The journal entry to record the write-off will include a Select one: a. Debit to Bad Debts Expense. b. Debit to Sales. c. None of the above d. Credit to Accounts Receivable. e. Credit to the Allowance for Doubtful Accounts.
Business
1 answer:
raketka [301]4 years ago
5 0

Answer:

d. Credit to Accounts Receivable.

Explanation:

Hutley Inc. is not going to pay the $8,000 to Searcy, therefore Searcy will make the following entry to write off the balance from Account Receivables.

Debit: Allowance for Doubtful Accounts $8,000

Credit: Accounts Receivables $8,000

To write-off Hutley Inc. receivables.

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Answer:

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Explanation:

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4 years ago
Complete the following statement. The purpose of the closing process is to reset temporary (temporary/permanent) account balance
ch4aika [34]

Answer:

Temporary, Capital

Explanation:

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3 years ago
If the marginal propensity to consume is 0.50​, how much would government spending have to rise to increase output by ​$10 comma
gizmo_the_mogwai [7]

Answer:

$5,000 billion

Explanation:

We know that

Government spending multiplier = 1 ÷ (1 - marginal propensity to consume)

Government spending multiplier = 1 ÷ (1 - 0.50)

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So, Government spending multiplier = 2

If the output is increased by $10,000 billion then, the government spending would rise by

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= $10,000 ÷ 2

= $5,000 billion

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3 years ago
What are the types of economic systems?
Aloiza [94]
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Elanso [62]

Answer:

a) channel members.

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