Matt co. is the lessor in connection with an operating lease. matt co. would record a depreciation expense. The lessor records it as a depceciation expense becuase they are using a stright-line lease as a source of revenue. As the operation lease declines, it will keep showing as a depreciation on their balance sheets.
Answer:
The change in the market for Cripps is positively related with other apples.
Explanation:
The Cripps pink apples are the substitute to the other apples so there is a direct relationship between the price one commodity and the demand for its substitute commodity. Therefore, if the price of Cripps pink apples rises, then the demand for other apples will rise also because of substitute goods. Similarly, if the price fall, then the demand for other apples will also fall. Thus substitute goods encompass a positive relationship.
Answer:
Bad Debts Expense of $ 15,000 in the income statement and offset of receivables by $ 15,000 in the balance sheet.
Explanation:
The portion of credit sales considered to be uncollectible will be recorded as an expense in the income statement for the period. This is usually classified as bad debts expense and appears in the income statement as a debit or expense.
The corresponding credit shall be either to an Allowance for Uncollectible accounts if a provision is made or directly as a credit to the receivables account.
In either manner the effect is to reduce the receivable in the balance sheet
