1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
bixtya [17]
2 years ago
11

On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $31,000

and $500, respectively. During Year 2, Kincaid reported $72,500 of credit sales, wrote off $550 of receivables as uncollectible, and collected cash from receivables amounting to $74,550. Kincaid estimates that it will be unable to collect one percent (1%) of credit sales.
What effect will recognizing the uncollectible accounts expense for Year 2 have on the elements of the financial statements?
a) Increase total assets and retained earnings
b) Decrease total assets and increase retained earnings
c) Decrease total assets and net income
d) Increase total assets and decrease net income
Business
1 answer:
Diano4ka-milaya [45]2 years ago
3 0
D Increase total assets and decrease net income
You might be interested in
The adjusted trial balance for China Tea Company at December 31, 2021, is presented below: Accounts Debit Credit Cash $ 14,000 A
Cerrena [4.2K]

Answer:

With the retained earning of the Income Statement $ 120,700, complete the accounting equation in the Retained Earning section.

2021 Balance Sheet

$14,000   Cash

$168,000 Accounts Receivable

$7,000     Prepaid Rent

$33,000   Supplies

$222,000  TOTAL CURRENT ASSETS  

$340,000 Equipment

-$133,000 Accum Depreciation

$207,000  TOTAL NONCURRENT ASSETS  

$429,000  TOTAL ASSETS  

$11,000  Accounts Payable  

$1,900  Interest Payable  

$3,000  Salaries Payable  

$15,900  TOTAL CURRENT LIABILITIES  

$20,000  Note Payable  

$20,000  TOTAL NONCURRENT LIABILITIES  

$35,900  TOTAL LIABILITIES  

$190,000  Common Stock  

$203,100  Retained Earnings  

$393,100  TOTAL EQUITY  

$429,000  TOTAL EQUITY + LIABILITIES  

Explanation:

Account of Current Assets , the criteria is to have a liquidity speed less of one year

Cash

Accounts Receivable

Prepaid Rent

Supplies

Account of Non Current Assets , the criteria is to have a liquidity speed more than one year and are known as fixed assets

Equipment

Accum Depreciation

Account of Current Liabilities , the criteria is to have a liquidity speed less of one year

Accounts Payable  

Interest Payable  

Salaries Payable  

Account of Non Current Liabilities, the criteria is to have a liquidity speed more than one year and are known as long term financing

Note Payable  

Account of Total Equity

Common Stock  

Retained Earnings  

Income Statement 2021

Sales $490,000

Depreciation -$35,000

Salaries Expenses -$187,000

Advertising Expenses -$70,000

Rent Expenses -$12,000

Utilities Expenses -$35,000

Net Income Before Taxes and Int $151,000

Interest Expenses -$2,300

Net Income Before Taxes $148,700

Dividends -$28,000        

Retained Earnings $120,700

4 0
3 years ago
When the average product of labor is decreasing​, the average product of labor is ▼ the marginal product of​ labor, and when the
attashe74 [19]

<u>When the average product of labor is decreasing​, the marginal  product of labor is less than average product of the labor.</u>

Explanation:

whenever the marginal product of labor is greater than the average product of labor the average product of labor must be increasing.

Average Product of labor is defined as the total output that a firm produces divided by the amount of workers required to produce that output.

Marginal Product of Labor is defined as the additional output produced by a firm because of hiring extra workers .

Production function is defined as the inputs used by a firm and the maximum output a firm can produce by employing those inputs

<u>Thus we can say that When the average product of labor is decreasing​, the marginal  product of labor is less than average product of the labor.</u>

3 0
3 years ago
Reviewing census data to see how many seniors over 55 are near your proposed location is an example of:
fomenos
Demographic. I think
4 0
2 years ago
"Mr. Tudor," said Judy, "Tom Pritchett suggested I contact you about our new computerized Civil War reenactment game." In this e
Grace [21]

Answer:

Referral

Explanation:

Referral is the term which is described as the act or way of telling someone  or a person regarding the positive features or attribute of the business or the person, who is being referred by the person.

For example, referral is telling someone or person that the certain business or the person having a good product or the service, and then that person visit the place.

Under this scenario, Tom referred Tudor to contact them regarding the new game. So, it is an example which the Judy uses referral method or way with Tudor.

6 0
3 years ago
According to researchers, the ideal state for learning is feeling:
My name is Ann [436]

Answer:

C) relaxed and alert at the same time

Hope this helps! 'v'

5 0
1 year ago
Other questions:
  • Holly's ham, inc. sells hams during the major holiday seasons. during the current year 11,000 hams were sold resulting in $220,0
    8·1 answer
  • To fight the ongoing inflation the central bank reduces the supply of money by 30%. the long-run effect of this policy on the re
    15·1 answer
  • As an advertising manager of a company, you have been asked to write a proposal stating why the company should advertise and it'
    15·1 answer
  • As real GDP falls: a. money demand rises, so the interest rate rises. b. money demand rises, so the interest rate falls c. money
    10·1 answer
  • What is 40+5+.6+.03 in word form
    7·1 answer
  • Comcast is advertising a new paperless statement program. With a few clicks of the mouse, you can now get your statements, pay i
    9·2 answers
  • The practical application of techniques and knowledge is called __________.
    14·1 answer
  • Which of the following is the phenomenon where social users are concerned about privacy but their behaviors contradict theses co
    5·1 answer
  • Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one uni
    10·1 answer
  • When law-enforcement officials do not have to provide search warrants to conduct searches in highly
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!