Purchasing can be broadly classified into two categories: merchants and industrial buyers

a. True
b. False
Indicate whether the statement is true or false


True

Business

You might also like to view...

To formulate a marketing research problem of appropriate scope, it is necessary to take into account both the resources available, such as money and research skills, and the constraints on the organization, such as cost and time

These considerations refer to which of the factors related to the environmental context of the problem? A) resources and constraints B) buyer behavior C) legal environment D) economic environment

Business

Capacity management is one of the ways to meet potential problems related to the ________ characteristic of services

A) intangibility B) perishability C) variability D) inseparability E) responsiveness

Business

SFAC designated which of the following as the term to indicate the comprehensive or total change in net assets occurring during the period as a result of operations?

a. Income b. Earnings c. Revenue d. Profits

Business

A company uses the aging of accounts receivable method to estimate its bad debts expense. On December 31 of the current year an aging analysis of accounts receivable revealed the following: Account AgeBalanceEstimated Uncollectible PercentageCurrent (not yet due)$620,0000.5%1-30 days past due270,0002.0%30-60 days past due145,0008.0%61-90 days past due55,00020.0%90-120 days past due32,00050.0%Over 120 days past due18,00070.0%Total$1,140,000?Required:a. Calculate the amount of the Allowance for Doubtful Accounts that should be reported on the current year-end balance sheet.b. Calculate the amount of the Bad Debts Expense that should be reported on the current year's income statement, assuming that the credit balance of the Allowance for Doubtful Accounts on January 1 of the current year

was $41,000 and that accounts receivable written off during the current year totaled $43,200.c. Prepare the adjusting entry to record bad debts expense on December 31 of the current year.d. Show how Accounts Receivable will appear on the current year-end balance sheet as of December 31. What will be an ideal response?

Business