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
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Ответ:
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.
Ответ:
$331.1
Explanation:
The property's taxable value are the financial worth attributed to a property by the tax authority , which serves as the basis on which tax returns are computed for such property.
Workings
Taxable value of the property = $77,000
Police district tax calculated at $2.5 per $1,000 = 77,000/1000*2.5 = 192.5
Fire protection district tax at $1.8 per $1,000 = 77,000/1000* 1.8 = 138.6
Tax liability due for payment = $331.1