Which of the following is true regarding normal balances of accounts?
A) All accounts have a normal debit balance.
B) The normal balance of all accounts will have either a positive or negative balance.
C) Accounts that have a normal debit balance will only have debit entries, never credit entries.
D) The normal balance is the side of the account that increases the account.
D
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The Links Company uses the percent of sales method of accounting for uncollectible accounts receivable. During the current year, the following transactions occurred:Sept 7Links Company determined that the $8,000 account receivable of the Rainier Company was uncollectible, and wrote it off.Oct 15Links Company determined that the $3,500 account receivable of the Olympic Company was uncollectible and wrote it off.Nov 9Rainier Company paid $6,000 of the amount owed to the LinksCompany. Links Company does not expect further collections from the Rainier Company.Dec 31Links Company estimates that 1% of its $1,900,000 of credit sales would be uncollectible.1. Prepare the general journal entries to record these transactions.2. If the balance of the allowance for uncollectible accounts was a
$4,000 credit on January 1 of the current year, determine the balance of the allowance for uncollectible accounts at December 31 of the current year. Assume that the transactions above are the only transactions affecting the allowance for uncollectible accounts during the year. What will be an ideal response?
For which of the following areas is broad information applicable to many user groups?
a. Predictive ability b. Accountability c. Both a and b d. None of the above
Which of the following is a false statement about scrap and by-products?
a. Both by-products and scrap are salable. b. A by-product has a higher sales value than does scrap. c. Management's goal is to produce both scrap and by-products. d. Both scrap and by-products are incidental outputs to the joint process.
Sweet Sal’s drive-thru eatery pays just above minimum wage, but other restaurants pay their workers more. Sweet Sal’s is paying ___________.
A. minimum wage B. at market C. above market D. below market E. profit sharing