You are watching: Which of the following statements is true of the direct write-off method?
Under the straight write-off method, the entry to compose off one uncollectible account will incorporate ________.
Under the straight write-off method, i m sorry of the complying with is consisted of in the entry to compose off an uncollectible account? a credit to the customer"s Account unification No entrance is do to compose off uncollectible accounts. A debit to pin money for Uncollectible accounts a credit transaction to the pin money for bad Debts
When a agency is utilizing the straight write-off method, and also an account is written off, the newspaper entry consists of a ________.
On January 1, Davidson Services has actually the adhering to balances:Accounts receivable $21,000Bad Debts cost $0Davidson has actually the following transactions throughout January: credit sales of $150,000, collections of credit transaction sales that $83,000, and write-offs that $20,000. Davidson uses the straight write-off method. The quantity of poor Debts cost for January is ________. Do not round until the last answer. Climate round come the nearest whole dollar.
Which of the following statements is true that the direct write-off method? it is only suitable for small companies that have very couple of uncollectible receivables. It results in more accurate net income than any other method. It provides much better matching of revenues with expenses. GAAP needs public providers to follow the straight write-off method.
Which that the adhering to is a properties of a plant asset, such as a building? it is easily accessible for revenue to client in the ordinary course that business. It has a short useful life. it will have a negligible value at the end of its beneficial life. The is provided in the to work of a business.
Danube Corp. Purchase a used device for $21,000. The an equipment required installation prices of $6,000 and insurance if in transit the $700. At which that the following quantities would the device be recorded?
A photocopier expense $95,000 when new and has accumulated depreciation of $90,000. If the business discards this plant asset, the result is ________.
An asset was purchased for $36,000 top top January 1, 2016. The asset"s estimated helpful life was 5 years, and also its residual value was $4,000. The straight-line technique of depreciation to be used. Calculation the obtain or lose if the asset is offered for $18,000 on December 31, 2016, the critical day that the accountancy period.
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Corel Sales sold its old office furniture because that $6,000. The original cost was $12,000, and at the moment of sale, collected depreciation to be $8,000. What is the impact of this transaction?
Prinkle coporation, group purchased tools for $56,000 ~ above January 1, 2016. Top top December 31, 2018, the devices was marketed for $23,000. Collected Depreciation together of December 31, 2018 was $32,000.Calculate obtain or ns on the sale.