Homework Answers
Correct answer is option - C.
Provision for doubtful debts is created by recognising bad debt expense in the profit and loss account which will decrease the net profit of the year.
Add Answer to:
An increase in the provision for doubtful debts will A increase the net profit for the...
11:47 PM V If on balance day, the business decided to increase the provision for doubtful...
11:47 PM V If on balance day, the business decided to increase the provision for doubtful debts from $100 to $600, the entries in the book would be to....... A debit provision for doubtful debts account, credit bad debts account with $600 B debit provision for doubtful debts account, credit bad debts account with $500 C debit bad debts account, credit provision for doubtful debts accounts with $500 D debit bad debt account, credit provision for doubtful debts account with...
1) If no provision for doubtful debts is made in the current accounting year, the current...
1) If no provision for doubtful debts is made in the current accounting year, the current profit will be... A) overstated B) understated C) unaffected D) undetermined
1)The profit & loss account of Sandy Corporation shows a net profit of $14,000. Bad debts...
1)The profit & loss account of Sandy Corporation shows a net profit of $14,000. Bad debts of $500 should have been written off & a decrease of $200 in provision for doubtful debts should have been allowed. What is the profit after this adjustment?
1)Businesses often create a provision for doubtful debts. i) Of which concept (or convention) is this...
1)Businesses often create a provision for doubtful debts. i) Of which concept (or convention) is this an example? Explain your answer. ii) What is the purpose of creating a provision for doubtful debts? iii) How might the amount of a provision for doubtful debts be calculated?
2) On 1 January 2005 there was a balance of $1000 in the provision for doubtful...
2) On 1 January 2005 there was a balance of $1000 in the provision for doubtful debts account, and it was decided to maintain the provision at 10% of the debtors at each year end. The debtors on 31 December each year were: • 2005=24,000 • 2006=16,000 • 2007=16,000 Show the necessary entries for the three years ended 31 December 2005 to 2007 inclusive in the following: 1) Provision for doubtful debts accounts (ii) Profit & loss accounts. (2b) What...
Which one of the following does not reflect the correct effect of an increase in provision...
Which one of the following does not reflect the correct effect of an increase in provision for bad debts on the financial statements? a- expenses will increase b- profit will decrease c= assets will increase d- equity will decrease
A)Accounts receivable accounts B) Allowance for doubtful debts account. C) Statement of profit or loss (extract)....
A)Accounts receivable accounts
B) Allowance for doubtful debts account.
C) Statement of profit or loss (extract).
D) Statement of financial position(extract).
Accounting for Accounts Receivable 15 & Suria commenced business on 1 January 20X0. At year end, 31 December 20X0, the accounts receivable balance was RM10,000. In addition, she found that it was necessary to create an allowance for doubtful debts of RM960. ro During the year ended 31 December 20X1, an amount totalling RM840 proved to be bad and...
Financial information is found below for Trinity Company. What is the gross profit? Sales Revenue: $192,000...
Financial information is found below for Trinity Company. What is the gross profit? Sales Revenue: $192,000 Sales Returns and Allowances: ??? Net Sales Revenue: $162,000 Cost of Goods Sold: $55,500 Gross Profit:????? Operating Expenses: $35,000 Net Income: ????? a) $162,000 b) $106,500 c) $71,500 d) $65,000 Question 4 (1 point) Performing a service for a client on account will a) increase one asset and decrease another asset b) decrease an asset and decrease a liability. c) increase an asset and...
1)The accounts for the year ending 30 November 2016 of Human Inc included a provision for...
1)The accounts for the year ending 30 November 2016 of Human Inc included a provision for doubtful debts at that date of $1800. During the year ending 30 November 2017, the company received $1000 from Michael towards the settlement of a debt of $1400, which had been written off as irrecoverable by the company in 2015. There is no evidence that Michael will be able to make further payments to the company. Trade debtors at 30 November 2017 amounted to...
Based on the following information, which statements is correct: Allowance for doubtful debts 25/10 72 14,230...
Based on the following information, which statements is correct: Allowance for doubtful debts 25/10 72 14,230 01/10 Opening balance 14,400 31/10 Closing balance 5,496 31/10 ?? 5,326 19,726 19,726 01/11 Opening balance 5,496 Select one: O a. Bad debts written off equal $5,326; Bad debts expense equals $14,230 O b. Bad debts written off equal $14,230; Bad debts expense equals $5,326 O c. Bad debts written off equal $14,230 + $5,326 = $19,556 O d. Bad debts expense equals $14,230...
11:47 PM V If on balance day, the business decided to increase the provision for doubtful debts from $100 to $600, the entries in the book would be to....... A debit provision for doubtful debts account, credit bad debts account with $600 B debit provision for doubtful debts account, credit bad debts account with $500 C debit bad debts account, credit provision for doubtful debts accounts with $500 D debit bad debt account, credit provision for doubtful debts account with...
1) If no provision for doubtful debts is made in the current accounting year, the current profit will be... A) overstated B) understated C) unaffected D) undetermined
1)The profit & loss account of Sandy Corporation shows a net profit of $14,000. Bad debts of $500 should have been written off & a decrease of $200 in provision for doubtful debts should have been allowed. What is the profit after this adjustment?
1)Businesses often create a provision for doubtful debts. i) Of which concept (or convention) is this an example? Explain your answer. ii) What is the purpose of creating a provision for doubtful debts? iii) How might the amount of a provision for doubtful debts be calculated?
2) On 1 January 2005 there was a balance of $1000 in the provision for doubtful debts account, and it was decided to maintain the provision at 10% of the debtors at each year end. The debtors on 31 December each year were: • 2005=24,000 • 2006=16,000 • 2007=16,000 Show the necessary entries for the three years ended 31 December 2005 to 2007 inclusive in the following: 1) Provision for doubtful debts accounts (ii) Profit & loss accounts. (2b) What...
A)Accounts receivable accounts
B) Allowance for doubtful debts account.
C) Statement of profit or loss (extract).
D) Statement of financial position(extract).
Accounting for Accounts Receivable 15 & Suria commenced business on 1 January 20X0. At year end, 31 December 20X0, the accounts receivable balance was RM10,000. In addition, she found that it was necessary to create an allowance for doubtful debts of RM960. ro During the year ended 31 December 20X1, an amount totalling RM840 proved to be bad and...
Financial information is found below for Trinity Company. What is the gross profit? Sales Revenue: $192,000 Sales Returns and Allowances: ??? Net Sales Revenue: $162,000 Cost of Goods Sold: $55,500 Gross Profit:????? Operating Expenses: $35,000 Net Income: ????? a) $162,000 b) $106,500 c) $71,500 d) $65,000 Question 4 (1 point) Performing a service for a client on account will a) increase one asset and decrease another asset b) decrease an asset and decrease a liability. c) increase an asset and...
1)The accounts for the year ending 30 November 2016 of Human Inc included a provision for doubtful debts at that date of $1800. During the year ending 30 November 2017, the company received $1000 from Michael towards the settlement of a debt of $1400, which had been written off as irrecoverable by the company in 2015. There is no evidence that Michael will be able to make further payments to the company. Trade debtors at 30 November 2017 amounted to...
Based on the following information, which statements is correct: Allowance for doubtful debts 25/10 72 14,230 01/10 Opening balance 14,400 31/10 Closing balance 5,496 31/10 ?? 5,326 19,726 19,726 01/11 Opening balance 5,496 Select one: O a. Bad debts written off equal $5,326; Bad debts expense equals $14,230 O b. Bad debts written off equal $14,230; Bad debts expense equals $5,326 O c. Bad debts written off equal $14,230 + $5,326 = $19,556 O d. Bad debts expense equals $14,230...
Most questions answered within 3 hours.
-
please don't use the p value method instead use the "5 steps of
hypothesis testing." Or...
asked 11 minutes ago -
It is said that Galileo discovered a basic principle of the
pendulum—that the period is independent...
asked 17 minutes ago -
The Cost of Equity and
Flotation Costs
Messman Manufacturing
will issue common stock to the public...
asked 24 minutes ago -
a) summarize the challenges facing New Britain today
b) identify some of its strengths
c) suggest...
asked 26 minutes ago -
**86 at 40 not 88. please show how got Tr in calculations thank
you
2) The...
asked 26 minutes ago -
McGlaun Company pays its employees every two weeks. The firm
last paid its employees on September...
asked 40 minutes ago -
You have been gifted a Mogwai as a pet and decide to do a little
online...
asked 45 minutes ago -
given the standard of 200 mg/dl and the absorbance of that
standard is 0.640. What is...
asked 47 minutes ago -
Exercise 8-51 Algo
An accounting professor is notorious for being stingy in giving
out good letter...
asked 55 minutes ago -
month
total distribution cost
level of activity (unit produced)
july
230.000
3500
august
250.000
3750
september...
asked 57 minutes ago -
A smoke detector system uses two devices, A and B. If smoke is
present, the probability...
asked 1 hour ago -
Your division head has assigned another important project to you
and your team. This project is...
asked 1 hour ago