The entry to close the appropriate insurance account at the end of the accounting period is
A) debit Income Summary; credit Prepaid Insurance
B) debit Prepaid Insurance; credit Income Summary
C) debit Insurance Expense; credit Income Summary
D) debit Income Summary; credit Insurance Expense
D
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The original and most widespread form of video game advertising is to have a brand placement in the game
Indicate whether the statement is true or false
An example of how companies can revamp their value chain to reduce costs is to
A. have suppliers locate their plants close to companies' own facilities. B. continue to utilize traditional methods of distribution and sales. C. increase extra services to increase staffing requirements. D. not make any changes in product manufacturing but change end distribution methods. E. facilitate the learning curve by providing superior training to new employees.
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Answer the following statement true (T) or false (F)
A company has $90,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. Experience suggests that 4% of outstanding receivables are uncollectible. The current balance (before adjustments) in the allowance for doubtful accounts is an $800 debit. The journal entry to record the adjustment to the allowance account includes a debit to Bad Debts Expense for:
A. $4,400 B. $3,568 C. $3,600 D. $3,632 E. $2,800