Answer:
The ending balance in the Allowance for Bad Debts is $29,000
Explanation:
The computation of the ending balance in the Allowance for Bad debts is shown below:
= Estimation of the uncollectible accounts
= $29,000
As for calculating the bad debts expense, the business organization has to do an estimate based on this, the company could create the allowance for bad debts.
The other information which is given in the question is not relevant. Hence, ignored it
Allows consumers to buy goods and services at a lower cost
Answer: b. Appraisal cost
Explanation: Appraisal cost, also known as inspection costs, are those costs incurred by a company, as part of the quality control process, to detect defective products before the products are moved to the market, in order to meet consumers' expectations.
This is done because the losses that will be made when defective products are sold, outweigh the appraisal costs.
Therefore, Sanford Corp. has incurred appraisal cost in buying the new technological systems, knowing that if the quality of the Company's products is not up to consumer standards, the losses that will be incurred will surpass that of the appraisal cost.
A verbal contract is generally legally binding, but enforcement requires a significant burden of proof. In this particular instance, there would be exceptional difficulties in compelling Chris to pay.
