Answer:
See explanation section.
Explanation:
December 31, 2017
Bad debt expense Debit = $17,600
Allowance for Doubtful Account Credit = $17,600
To record the bad debt expense
Calculation: Bad debt expense = $250,000 × 8% = $20,000. However, we cannot take this amount because Allowance for Doubtful Account is a positive contra entry, which has a $2,400 credit balance. Therefore, we have to deduct $2,400 from $20,000 to get the actual bad debt expense.
C. A resume is the correct answer
Answer:
1. bad debt expense debit 7940
allowance for bad debt credit 7940
2. allowance for bad debt debit 397
account receivable credit 397
3. account receivable debit 397
allowance for bad credit 397
4. cash debit 397
account receivable credit 397
Explanation:
the allowance will be the 1% of 794,000
then recognize the allowance for that ammount along with the bad debt expense
total write-off an account we decrease both, the allowance and account receivable
total reinstate the Parks account we do the previous entry backwards
lastly we post like any other collection from Account Receivable
Answer:
c. The expected rate of return on the market rM
Explanation:
The correct option is c. The expected rate of return on the market rM
* The expected market return is the return the investor would expect to receive from a broad stock market indicator such as the S&P 500 Index.
