Digital Corporation The following data concern Digital Corporation for 2012. Credit sales during the year $2,400,000 Accounts receivable--December 31, 2012 410,000 Allowance for bad debts--December 31, 2012 55,000 Bad debt expense for the year 35,000 Refer to the information provided for Digital Corporation. What are the effects on the accounting equation when Digital makes the adjustment to
record bad debt expense using the allowance method?
A) Assets increase and liabilities decrease
B) Assets and equity decrease
C) Assets increase and equity decreases
D) Assets decrease and equity increases
B
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As a way of helping American firms trade in the world market, U.S. trade law provides antitrust exemptions for horizontal combinations of American firms engaged solely in export trade. Such firms are permitted to form
a. export trade associations. b. domestic international sales corporations. c. export-import banks. d. commodity sales corporations.
An audit by an independent external auditor usually does not involve which of the following?
a. an assessment of the capability of a firm's accounting system to accumulate, measure, and synthesize transactional data properly. b. an assessment of the operational effectiveness of the accounting system c. a determination of whether the financial report complies with the requirements of the applicable authoritative guidance d. an assessment of the operational economy, efficiency, and effectiveness of the company's operations e. an assessment of the effectiveness of a firm's internal control system for financial reporting.
Questions of ______ are used when one person advocates for change in an existing plan or law.
a. fact b. value c. policy d. merit
When a firm tries to increase sales by selling its present products in new markets, it is called
A. market development. B. mass marketing. C. diversification. D. product development. E. market penetration.