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Mariulka [41]
2 years ago
7

Thomas Company receives information that requires the company to increase its expectations of uncollectible accounts receivable.

Which of the following does not occur on the company’s financial statements? Select one:
A. Bad debt expense is increased
B. Accounts receivables (gross) is reduced
C. Net income is reduced
D. The allowance account is increased
E. None of the above
Business
1 answer:
dangina [55]2 years ago
7 0

Answer:

A. Bad Debt expenses is increased

Explanation:

The answer above won't occur because under the allowance method, if a customer's receivables is flagged as uncollectible, it is usually written off by deducting the amount from the total receivables. This entry to write off a bad debt will only have effects on the statement of financial position. The entries will be:

Debit: Allowance for doubtful debts account

Credit: Total receivables

No loss will be reported in the income statement because we have previously made a provision for it in bad debts.

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When the perpetual inventory method is being used, the accountant debits __________ __________ and credits Accounts Payable (or
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Answer:

merchandise inventory

Merchandise inventory

Merchandise inventory    

Merchandise inventory

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Merchandise inventory

Explanation:

When the perpetual inventory method is being used, the accountant debits  <u>merchandise inventory </u>and credits Accounts Payable (or Cash) when goods are purchased and debits Cost of Goods Sold and credits <u>merchandise inventor</u>y when gods are sold, along with the proper sales entry.

When the perpetual inventory method is being used, the accountant debits  <u>merchandise inventory </u>and credits Accounts Payable (or Cash) when goods are purchased and debits Cost of Goods Sold and credits <u>merchandise inventor</u>y when gods are sold, along with the proper sales entry.

When the perpetual inventory method is being used, the accountant debits  <u>merchandise inventory </u>and credits Accounts Payable (or Cash) when goods are purchased and debits Cost of Goods Sold and credits <u>merchandise inventor</u>y when gods are sold, along with the proper sales entry.

The cost of each sale transaction ensures that the merchandise inventory account under a perpetual inventory system reflects the updated cost of merchandise available for sale.

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2 years ago
You are planning an AD implementation for a company that currently has Sales, Accounting, and Marketing departments. Each depart
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Delegation of control

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When organizations pollute the local community, _____ occurs as housing values decline, wealthy owners move, and neighborhoods b
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Gentrification occurs as the......

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In a local survey, 100 citizens indicated their opinions on a revision to a local land-use plan. Of the 62 persons giving favora
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3 0
2 years ago
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Answer:

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If Mo pays cash, it implies that she does not get the 3% discount she is entitled to, with the use of her credit card.  Therefore, she will bear the full cost.  However, if she uses the credit card, the discount is $4.20 ($1540 * 97%) and she will pay only $135.80 as the discounted price of the electronic reader.

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