Monro Inc. uses the accrual method of accounting. Here is a reconciliation of Monro's allowance for bad debts for the current year.Beginning allowance for bad debts?$ 61,150??Actual write-offs of accounts receivable during the year?(80,000)?Addition to allowance? 88,500??Ending allowance for bad debts?$ 69,650???Which of the following statements is true?
A. Bad debt expense per books is $88,500, and the deduction for bad debts is $80,000.
B. Bad debt expense per books is $80,000, and the deduction for bad debts is $88,500.
C. Bad debt expense per books and the deduction for bad debts is $88,500.
D. Bad debt expense per books and the deduction for bad debts is $69,650.
Answer: A
You might also like to view...
The terms "decision support systems" and "expert systems" are mentioned more and more frequently in recent years.
Answer the following statement true (T) or false (F)
Sales positions can be a good track for promotion to supervisory-management positions
Indicate whether the statement is true or false
Carolina Products Carolina Products sells a unique item with the following information available: Sales price $45 per unit Variable costs $15 per unit Fixed costs $5 per unit Units produced and sold 2,000 Refer to the Carolina Products information above. What is the contribution margin ratio?
A) 33.33% B) 66.67% C) 55.56% D) 44.44%
Selecting good, well-qualified salespeople can be aided by
A. systematic selection procedures. B. background checks. C. good job descriptions. D. multiple interviews with company executives. E. All these answers are correct.