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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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Luden [163]

Answer:

The correct answer is $55.

Explanation:

Implicit costs, also known as opportunity costs, are the costs of lost opportunities due to business decisions.

That is, they refer to the income that the resources of a company would otherwise generate if they are put to any other use apart from its current allocation.

To calculate this value, you have to:

Purchased shares = 100

So, 100 (10.30 - 10.25) + 2 (.25) = $ 55

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2 years ago
Identify the accounting​ concept, assumption, or principle that best applies to each of the following​ situations: a. Inflation
lianna [129]

Answer:

The list is follows:

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b. You get an especially good buy on a laptop​, paying only $ 300$300 when it normally costs $ 800. What is your accounting value for this laptop? - Historical cost principle

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6 0
2 years ago
Sheila is hosting a large diplomatic event and needs to increase her inventory of dinnerware sets. She has set a $1925 budget an
svp [43]

Answer:

Demand curve for Sheila's plates and cups

Q = 22.5 - \frac{1}{2}P

Explanation:

we have to write the demand function for Shiela's

Q = b - aP

we solve for a solving for the line that cross two points:

\frac{P_2-P_1}{Q_2-Q_1} = a

\frac{25 - 35}{35 - 30} = a

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- \frac{1}{2} = a

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35 - 1/2(25) = b

b = 22.5

Last we build the demand curve

Q = 22.5 - \frac{1}{2}P

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2 years ago
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Mumz [18]

Answer:

The buyer can sue for specific performance of the contract. In real estate, in order for the buyer to be able to sue for specific performance, he/she must have all the money (or mortgage) ready to finish the transaction. It is very difficult for someone to sue for damages for not wanting to complete the sale of a house because houses are unique in a way that similar houses in different neighborhoods or even streets might be worth a lot more or less.

When you sue for specific performance, the non-breaching party will request that the other party performs their side of the contract.

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