Answer:
Debit Bad debts expense $23,000
Credit Allowance for Doubtful Accounts $23,000
Explanation:
At December 31, 2017,
Bad debts is estimated:
8% x $325,000 = $26,000
Before adjusting, Allowance for Doubtful Accounts $3,000 credit. The company use aging method to estimate bad debts expense and Allowance for Doubtful Accounts. Bad debts expense amount will be record:
$26,000 - $3,000 = $23,000
The Journal entry:
Debit Bad debts expense $23,000
Credit Allowance for Doubtful Accounts $23,000
A book or record in which certain types of transaction are recorded before becoming part of the double-entry book-keeping system. The most common books of prime entry are the day book, the cash book, and the journal
Answer: Interest expense = $45500
Cash outflow = $45500
Explanation:
Based on the information that were given in the question, the amounts of interest expense and cash flows from operating activities, that will be reported in the financial statements for the year ending December 31, Year 1 will be calculated thus:
Interest expense = $700,000 × 6.50%
= $700,000 × 0.065
= $45500
The interest expense of $45500 will be reported on December 31, Year 1 in the income statement and will also be reported in the cash outflow as well. Therefore,
Interest expense = $45500
Cash outflow = $45500
Answer:
b
Explanation:
An Oligopoly is when there are few large firms operating in an industry. While, a monopoly is when there is only one firm operating in an industry.
Oligopolies are characterised by:
- Firms that set the market price for their products
- profit maximisation
- high barriers to entry or exit of firms
- downward sloping demand curve
87 octane gas in Durham is the same in each of the five stations, so the product is undifferentiated
A perfect competition is characterised by many buyers and sellers of homogeneous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
A monopolistic competition is when there are many firms selling differentiated products in an industry.
A monopoly is when there is only one firm operating in an industry.
An example of a monopoly is a utility company
B. False
Institutional advertising does not attempt to sell anything directly. It is type of advertising intended to promote company, business, institution or other similar entity.
