Answer:
$26,600
Explanation:
Bad debts expense based on a percentage of credit sales requires an adjusting entry equal to the percentage of credit sales; no consideration is given to the ending balance of the allowance account when computing the adjustment.
The adjusting entry will include a credit to the Allowance for Doubtful Accounts account for $26,000 (or $650,000 x .04).
Note, however, that this question asks for the ending balance in the allowance account.
Since there is a $600 credit balance prior to adjustment, the balance in the allowance account after adjustment will be $26,600
(the credit balance of $600 + a credit of $26,000 will yield an ending credit balance of $26,600).
Answer:
Differentiation strategy
Explanation:
Differentiation strategies seek to create higher value for their customers by producing goods and services that offer unique features that differentiate them form their competitors. This is done while trying to keep the same or similar (maybe a bit more expensive) price levels as the competition
.
In this case Beach Grub offers a differentiated service while keeping their prices higher than the competition but not as high as luxurious restaurants.
Though I have no experience in business, I would say it is True.
Answer:
The correct answer here is Cash basis.
Explanation:
One of the methods of recording accounting transactions for income and expenses is cash basis accounting , where the transactions are only recorded when income is received in cash or expenses are paid in cash. This accounting method is not accepted by GAAP (Generally accepted accounting principle ) and IFRS ( International financial reporting standards ) because this method violates the income ( revenue ) and expense recognition principle.
