An aging of a company's accounts receivable indicates that $5,000 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1,200 credit balance, the adjustment to record bad debts for the period will require a
A) debit to Allowance for Doubtful Accounts for $3,800.
B) debit to Bad Debts Expense for $3,800.
C) debit to Allowance for Doubtful Accounts for $5,000.
D) credit to Allowance for Doubtful for $5,000.
B
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Barley, Inc sold $30,000 of 8% bonds for $40,200. Each $1,000 bond carried eight rights and each right allowed the holder to acquire one share of $10 par stock for $16 a share. After the issuance of the securities, the bonds were quoted at 104 and the rights were quoted at $4 each. Later, one-half of the rights were exercised. At date of exercise, how much should be credited to Additional Paid-in
Capital? A) $1,320 B) $720 C) $600 D) $2,640
ASC 958Â requires that an "other not-for-profit entity" (ONPO) provide three financial statements. Which of the following is NOT one of them?
A. A statement of cash flows B. A statement of activities C. A statement of financial position D. A statement of functional expenses
Low level of service often results in ______.
A. higher customer satisfaction B. longer waiting lines C. lower waiting time cost D. higher capacity-related costs
Amalgamated Appliance Inc. has planned a 3-month issue of commercial paper with a face value of $25,000,000. The paper is set to sell at 98.5% of face value. What is the EAR?
A) 6.08% B) 6.23% C) 3.04% D) 3.12%