Answer:
Option D. management estimates the amount of uncollectibles
Explanation:
When the company estimates the bad debts, reflects it in the balance sheet through a Debit entry in the Bad Debt Expenses againts the asset account Allowance for Doubtful Accounts as a Credit.
When the bad debt are confirm as uncollectible the loss is reflected in the Account Receivable as a Credit with the correspondent debit entry in the Allowance for Doubtful Accounts.
0.00547645125%
5 / 913 = 0.00547645125
Answer: C. have a conflict of interest because the investment was suitable for the client
Explanation:
Conflict of interest occurs when the aims of two different parties are not thesame. In such scenario, the best interest of an individual is different from the best interest of the other person.
Since the client funds placed for investment brought about a good return, then the investment manager doesn't have a conflict of interest because the investment was suitable for the client.
The correct answer is $13,500
The insurance coverage for the garage will cover the garage for 10% of the insured value of the home. This is calculated by multiplying .1 x $135,000 = $13,500.
Even though there is $15,000 in damage, the garage is only covered for $13,5000 of insurance.
Answer:
Owner's capital account is increased by $2,235,000.
Explanation:
At the end of the period the closing entries are made to close the temporary accounts of Revenue and expenses and transfer the balance to retained earning or owners capital account.
Net income for the year = Total revenue - Total Expenses
Net income for the year = $12,840,000 - 9,975,000
Net income for the year = $2,865,000
Changes in owner's capital account during the period = net income / loss - drawings during the period
Changes in owner's capital account during the period = $2,865,000 - $630,000
Changes in owner's capital account during the period = $2,235,000
