Answer:
0.04 *60,0000= 2400
Debt Credit
Bad debt expense 2400
Accounts receivables 2400
Allowance for doubtful accounts 2400
Bad dent expense 2400
Explanation:
Answer and Explanation:
The transactions 3 6 and 8 represents that the expenses are incurred which results in increased and expenses and the transaction 4 and 5 shows that there is an increased in revenue
The journal entry is shown below:
For transaction 3
Rent expense
To Cash
(Being the rent expense is paid for cash is recorded)
As the expense has debit balance so it would be increased
For transaction 6
Electricity expenses Dr
To Cash
(Being the energy usage is paid for cash is recorded)
As the expense has debit balance so it would be increased
For transaction 8
Advertising expense Dr
To Account payable
(Being the advertising expense is recorded)
As the expense has debit balance so it would be increased
For transaction 4
Account receivable Dr
To Service revenue
(Being the service is provided)
As the revenue has credit balance so it would be increased
For transaction 5
Cash Dr
To Service revenue
(Being the service provided is recorded)
As the revenue has credit balance so it would be increased
The attachment is provided for better understanding
The other transactions represent the assets, liabilities and stockholder equity
The government wants to impose the smallest excess burden possible. My recommendation would be to increase the property tax only on residential property because taxpayers are allowed to deduct property taxes from federal income tax inability, thus reducing the amount they must pay in federal taxes.
Explanation:
- To increase tax revenue it can either increase the property tax on residential property or increase the property tax on all property. The government wants to impose the smallest excess burden possible.
- to increase the property tax only on residential property because taxpayers are allowed to deduct property taxes from federal income tax inability, thus reducing the amount they must pay in federal taxes.
- The examples of federal taxes are,
- The Income taxes. Income taxes can be charged at the federal, state and local levels.
- The Sales taxes. Sales taxes are taxes on goods and services purchased.
- Payroll taxes.
- Property taxes.
- Estate taxes,etc