[The following information applies to the questions displayed below.]On December 31, Year 1, the Loudoun Corporation estimated that 3% of its credit sales of $112,500 would be uncollectible. Loudoun uses the allowance method. On February 15, Year 2, one of Loudoun's customers failed to pay his $1,050 account and the account was written off. On April 4, Year 2, this customer paid Loudoun the $1,050.Which of the following correctly states the effect of Loudoun Company's February Year 2 entry to write off the customer's account? Assets=Liab.+Stk.EquityRev.?Exp.=Net Inc.Stmt of Cash FlowsA.NA NA NANA NA NANAB.(1,050) NA (1,050)(1,050) NA (1,050)NAC.(1,050) (1,050) NANA NA NANAD.NA 1,050 (1,050)NA 1,050 (1,050)NA
A. Option A
B. Option B
C. Option C
D. Option D
Answer: A
You might also like to view...
One of the prerequisites to paying a cash dividend is sufficient retained earnings
a. True b. False Indicate whether the statement is true or false
Once an ethically ambiguous tactic is employed, the negotiator will assess consequences on three standards. Which of the following is not one of those standards?
A. whether the tactic worked by producing the desired result B. whether the tactic worked in the past C. how the negotiator may be judged by the other party or by neutral observers D. how the negotiator feels about themselves after using the tactic
Telling employees to perform tasks that are a part of their job design is ______.
a. delegating b. issuing orders c. prioritizing d. the chain of command
The weighted average method matches the costs of inventory items with the revenue generated by the sale of the inventory items.
Answer the following statement true (T) or false (F)