The general ledger account for Accounts Receivable shows a debit balance of $25,000 . Allowance for Uncollectible Accounts has a credit balance of $1,500 . Net sales for the year were $250,000 . In the past, 3 percent of sales have proved uncollectible, and an aging of accounts receivable resulted in an estimate of $10,000 of uncollectible accounts receivable. Using the accounts receivable aging
method, the entry to record the Uncollectible Accounts Expense is:
a. Uncollectible Accounts Expense 10,750
Allowance for Uncollectible Accounts 10,750
b. Uncollectible Accounts Expense 8,500
Allowance for Uncollectible Accounts 8,500
c. Uncollectible Accounts Expense 10,000
Allowance for Uncollectible Accounts 10,000
d. Uncollectible Accounts Expense 11,500
Allowance for Uncollectible Accounts 11,500
B
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Crocus, a gift store, specializes in serving customer segments that major competitors overlook and ignore. Which of the following best describes Crocus?
A) market follower B) market challenger C) early adopter D) market nicher E) laggard
On March 1, Bartholomew Company purchased a new stamping machine with a list price of $85,000. The company paid cash for the machine; therefore, it was allowed a 5% discount. Other costs associated with the machine were: transportation costs, $2800; sales tax paid, $6120; installation costs, $1750; routine maintenance during the first month of operation, $2700. What is the cost of the machine?
A. $94,120 B. $91,420 C. $80,750 D. $89,670
When parties enter into a contract, they acquire rights and assume obligations
Indicate whether the statement is true or false
A disadvantage of a partnership is that:
A. each partner is responsible for the acts of every other partner. B. there are inadequate management and employee skills. C. financial resources are obtained from one person only. D. specialized skill is difficult to find in the individual partners.