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. $2,800
B. $4,400
C. $3,632
D. $3,600
E. $3,568
Answer: B
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The pound shows a forward discount against the dollar (the forward rate is less than the spot rate) when
a. interest rates in the United Kingdom are higher than those in the United States. b. interest rates in the United Kingdom are lower than those in the United States. c. real GDP is higher in the United Kingdom than in the United States. d. real GDP is lower in the United Kingdom than in the United States.
U.S. GAAP requires companies to present a balance sheet with classifications for current and long-term liabilities, while IFRS does not
a. True b. False Indicate whether the statement is true or false
Fashion Barn Company, a retailer, accepts payment through credit cards. During August, credit card sales amounted to $12,000. The processor charges a 3% fee. Assume that the processor deposits the net amount. Prepare the journal entry for credit card sales. (Ignore cost of goods sold.) Omit explanation.
What will be an ideal response?
Global Commerce Corporation purchased trading debt investments for $49,000 on December 31, 2018. There is a decrease of $3800 in the fair value of the trading debt investments by the end of the year 2019. Which of the following is the correct journal entry?
