The economic effect of an expense is incurred when the benefit expires or is used up not when cash is paid true or false

Problem 5-3A Record transactions related to accounts receivable (LO5-3, 5-4, 5-5) [The following information applies to the ques

konstantin123 [22]

Answer:

JOURNAL ENTRIES related Accounts Receivables

2021

12 June Debit Accounts receivable $37,400 Credit Service Revenue $37,400

17 Sep Debit Bank $22,000 Credit Accounts receivables $22,000

31 Dec Debit provision for doubtful debts adjustment (expense) $6,930 Credit Provision for bad debts $6930

2022

4 Mar Debit Accounts receivable $ 52400, Credit Service revenue $52,400

20 May Debit Bank $10,000 Credit Accounts receivables $10,000

19 Oct Debit Bank $42000 Credit Accounts receivables $42,000

31 Dec Provision for bad debts adjustment $180 Credit provision for bad debt $180

Explanation:

2021

provision for bad debts beginning = $0

adjustment = $6930

closing (15400 *0.45) =$6930

an increase in provision or allowance in doubtful debts is an expense

2022

Provision for bad debts opening $6930

Adjustment $180

closing (15800*0.45) $7110

8 0

2 years ago

One of the four seasons hotel's customer-defined standards is "staff will speak to guests in an attentive, natural, and courteou

galina1969 [7]

Soft customer-defined standard.
Opinion based measures that cannot be observed and must be collected by talking to customers(perceptions, belief) is called Soft customer-defined standard.

6 0

3 years ago

What term represents the worldwide movement toward economic

Alexeev081 [22]

An economy because that is economics as a whole

4 0

3 years ago

Suppose your firm receives a $ 3.2 million order on the last day of the year. You fill the order with $ 1.7 million worth of inv

AURORKA [14]

Answer & Explanation:

a.- Revenues: Increase for 3.2 millions

It will be recognize for the entire order, as it was deliveried entirely within the accounting period.

b.- Earnings: Increase for 1.5 millions

The earnings for the business will be the net between the revenues and expenses.

3.2 revenues - 1.7 expenses = 1.5 earnings

c.- Receivables: Increase for 1.8 millions

It will increase for the unpaid portion ofthe order.

d.- Inventory Decrease for 1.7 millions

It will decrease for the entire cost of the order, as it was within this accounting period both, revenues and the expense related to it, will be recognize.

e.- Cash: Increase for 1.4 millions

It will increase for the amount received from the customer. As it was no payment from the business in the transaction.

5 0

3 years ago

An authorization to start a business issued by the local government is a _____. fringe benefit zoning law business license liabi

Rina8888 [55]

An authorization to start a business issued by the local government is a business license. A business license allows a person to run a business legally. The license is used for tax purposes with the government and so the government can control and regulate the business on the legal side. If you do not have a business license, then you are a sole proprietor and running the business for tax purposes from your social security number.

5 0

2 years ago