The general ledger account for Accounts Receivable shows a debit balance of $50,000. Allowance for Uncollectible Accounts has a credit balance of $3,000. Net sales for the year were $500,000. In the past, 3 percent of sales have proved uncollectible, and an aging of accounts receivable resulted in an estimate of $20,000 of uncollectible accounts receivable. Using the percentage of net sales
method, the Allowance for Uncollectible Accounts balance (after adjustment) would be
A) $12,000.
B) $15,000.
C) $18,000.
D) $20,000.
C
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The Black Corporation has provided the following information: Net income$560,000 Increase in prepaid expenses 14,000 Amortization of discount on bonds payable 10,000 Decrease in accounts payable 20,000 Increase in inventory 21,000 Dividends declared 39,000 Dividends paid 36,000 Increase in accounts receivable 30,000 Increase in wages payable 16,000 Increase in deferred tax liability 41,000 Required: Determine the cash flow from operating activities using the indirect method of cash flow statement presentation.
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The employer's goal in the initial screening interview is to
A) find your greatest strengths in depth. B) filter out applicants who are not a good fit for the position. C) make offers to the best candidates. D) learn as much detail as possible about candidates. E) determine how interested candidates really are in the position.
Which of the following is most likely true of marketing channel decisions?
A) They often involve long-term commitments to other firms. B) They have minimal influence on the prices of products offered to customers. C) They increase the amount of time a company spends connecting with customers. D) They increase the amount of effort a company puts in to distribute goods. E) They are easily altered, replaced, or discarded.
On December 1, Petroleum, Inc., sent Rachel & Rico (R&R) a letter, via overnight delivery, offering to employ R&R to review Petroleum’s tax situation for the current year for $10,000. In the letter, the company stated that R&R had ten days to accept. On December 5, R&R sent an e-mail message that stated, “The price for the tax analysis seems too low. Would you consider paying $15,000?” Petroleum received the message without responding immediately. The next day, Smith & Taylor, an R&R competitor, offered to conduct the appraisal for $8,000. On learning of this offer, R&R immediately e-mailed Petroleum, agreeing to do the work for $10,000. Petroleum received this message on December 7. Explain why R&R and Petroleum do, or do not, have a contract.
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