At the end of the current year, using the aging of receivable method, management estimated that $15,750 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a credit balance of $375. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?
A.
| Bad Debts Expense | 15,375 | |
| Allowance for Doubtful Accounts | 15,375 |
B.
| Bad Debts Expense | 16,125 | |
| Allowance for Doubtful Accounts | 16,125 |
C.
| Accounts Receivable | 15,750 | |
| Bad Debts Expense | 375 | |
| Sales | 16,125 |
D.
| Accounts Receivable | 16,125 | |
| Allowance for Doubtful Accounts | 16,125 |
E.
| Bad Debts Expense | 15,750 | |
| Allowance for Doubtful Accounts | 15,750 |
Answer: A
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Traditional accounting assumes that products cause costs. ABC assumes that _________________ cause costs
Fill in the blank(s) with correct word
Hoover Company acquired Burgess Company for $1,200,000 cash. The fair value of Burgess's assets was $1,040,000, and the company had liabilities of $60,000. Which of the following journal entries would be used to record the purchase of Burgess Company?
A.
| Burgess assets | 1,040,000 | |
| Goodwill | 160,000 | |
| Cash | 1,200,000 |
B.
| Burgess assets | 1,040,000 | |
| Goodwill | 220,000 | |
| Cash | 1,200,000 | |
| Burgess liabilities | 60,000 |
C.
| Burgess assets | 1,040,000 | |
| Burgess liabilities | 60,000 | |
| Goodwill | 100,000 | |
| Cash | 1,200,000 |
D.
| Burgess assets | 1,200,000 | |
| Cash | 1,200,000 |
Hospitality represents a more subtle approach to consultation because it involves helping customers better understand their situations
Indicate whether the statement is true or false
A ________ requires a mortgage or deed of trust to be recorded in the county recorder's office of the county in which the real property is located
A) recording statute B) real property statute C) mortgage statute D) compilation statute