On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $71,800 and $3100, respectively. During the year Kincaid reported $194,000 of credit sales. Kincaid wrote off $1800 of receivables as uncollectible in Year 2. Cash collections of receivables amounted to $234,500. Kincaid estimates that it will be unable to collect one percent (1%) of credit sales.Kincaid's entry to recognize the write-off of the uncollectible accounts will:
A. decrease total assets and total equity.
B. increase total assets and total equity.
C. increase total assets and decrease total equity.
D. not affect total assets or total equity.
Answer: D
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An employee receives an hourly rate of $15, with time and a half for all hours worked in excess of 40 during theweek. Payroll data for the current week are as follows: hours worked, 48; federal income tax withheld, $120; socialsecurity tax rate, 6%; and Medicare tax rate, 1.5%; state unemployment compensation tax, 3.4% on the first$7,000; federal unemployment compensation tax, 0.8% on the first
$7,000 . What is the net amount to be paid to theemployee? a. $568.74 b. $601.50 c. $660.00 d. $574.90
A national union is most likely to take the lead in collective bargaining:
A. When the company is large. B. When the company is small. C. The national union never takes the lead - it is the local union that leads bargaining. D. The national union always takes the lead in collective bargaining.
Singh Company manufacturers wheelchairs. Each wheelchair requires $325 of raw materials and $780 of conversion costs. Each wheelchair is sold for $1,500. Last month Singh completed 35 wheelchairs and sold 32 wheelchairs. The ending balance in finished goods inventory is:
A. $3,315. B. $4,315. C. $1,105. D. $4,420. E. $3,500.
Generally, filing bankruptcy stops the collection activity of creditors
Indicate whether the statement is true or false