The right answer for the question that is being asked and shown above is that: "<span>c. Accounts Receivable will be overstated by $7,500. " </span>If an adjustment for $7,500 in accrued revenues is omitted, the affect that the financial statements is that a<span>ccounts Receivable will be overstated by $7,500. </span>
<span>I, II, and IV I think</span>
The correct answer is D) Both subparts apply, as these individuals are under the legal age of consent and are incarcerated.
Neither Subpart C (Prisoners) nor Subpart D (Children) applies to juveniles in the correctional systems because wardens of juvenile prisoners (unlike those for adult prisoners) act in loco parentis for juvenile offenders. This statement is false because "Both subparts apply, as these individuals are under the legal age of consent and are incarcerated."
If there is any confusion, the term "loco parentis" means that a person or institution takes the legal responsability of parents. But in the correctional systems, people brought there have committed some kind of infraction, aggression, disobey the law or any kind of misbehavior. So wardens of juvenile prisoners do not act or have legal responsability as parents have.
The other options of the question were A) The need for the signatures of both parents outweighs the two subparts. B) Subpart C still applies, as the potential subjects are juveniles. C) Only subpart C applies because of the need for assent forms, as a result of in loco parentis status for juveniles.
Answer and Explanation:
The Journal entry is shown below:-
Bad debts expense Dr, $2,000
To Accounts receivable-Hopkins $2,000
(Being write off is recorded)
Here we debited the bad debt expenses as it increased the expenses and we credited the accounts receivable as it reduced the assets so that the proper posting could be done
