Emily is a customer of Amandes, Inc. which uses the allowance method to account for uncollectible accounts. The company wrote off her account of $800 on June 15. On July 11, she sent in a payment of $500. What will Amandes, Inc. record first to reinstate her account?
A) Debit Cash; credit Accounts Receivable/Emily.
B) Debit Bad Debt Expense; credit Accounts Receivable/Emily.
C) Debit Allowance for Doubtful Accounts; credit Accounts Receivable/Emily.
D) Debit Accounts Receivable/Emily; credit Allowance for Doubtful Accounts.
D) Debit Accounts Receivable/Emily; credit Allowance for Doubtful Accounts.
You might also like to view...
________ is the profit on the sale of merchandise before any operating expenses have been deducted
a. Gross profit b. Net profit c. Net income d. Sales
Groups at all levels in an organization can do all of these EXCEPT
A. establish a sense of urgency. B. provide the means for enacting new behaviors. C. communicate information about the changes. D. be part of a guiding coalition. E. hold change efforts together.
__________ liability is the imposition of liability on one party for the wrongs of another
a. Vicarious b. Validity c. Relator d. Absolute
Use the data provided on Cadbury to answer the question below. The risk free rate is 4.25%. The expected return on the market portfolio is 9.75%
The corporate tax rate is 40%. The face value of Cadbury's outstanding bonds is 2.450 billion pounds sterling. The coupon rate on Cadbury's bonds is 4.5%. Assume that the bonds pay annual coupons. The yield to maturity on Cadbury's bonds is 4.5%. Cadbury's bonds mature in 7 years. Cadbury has 1.650 billion common shares outstanding. The market price of Cadbury's common shares as of Dec 31, 2008 is 6.25 pounds sterling. Cadbury's Beta is 0.8. What is Cadbury's cost of equity? A) 4.20% B) 4.40% C) 7.80% D) 8.65% E) 8.70%