Prior to 2020, Gonzo record bad debt expense at a rate of 3% of net sales. Based on improving economic conditions for its customers, at the beginning of 2020 management decided to change its estimate to 2% of net sales. Gonzo began making credit sales in 2018 and if the new rate had been used in prior years, bad debt expense would have been $150 lower in 2018 and $120 lower in 2019. Bad debt expense for the current year is based on the new rate and is properly included in selling, general and administrative expenses in the current period. In addition to recording 2020 bad debt expense based on 2% of net sales, in what other ways would the change in the rate used to record bad debt expense impact the 2020 financial statements of Gonzo
Answers: 3
Business, 21.06.2019 14:00
Identifying type and normal balances of accounts lo c4 for each of the following (1) identify the type of account as an asset, liability, equity, revenue, or expense, (2) identify the normal balance of the account, and (3) select debit (dr.) or credit (cr.) to identify the kind of entry that would increase the account balance.
Answers: 1
Business, 22.06.2019 19:40
On april 1, santa fe, inc. paid griffith publishing company $2,448 for 36-month subscriptions to several different magazines. santa fe debited the prepayment to a prepaid subscriptions account, and the subscriptions started immediately. what amount should appear in the prepaid subscription account for santa fe, inc. after adjustments on december 31 of the first year assuming the company is using a calendar-year reporting period and no previous adjustment has been made?
Answers: 1
Business, 22.06.2019 19:50
Joe pays ann to mow his lawn and ann mows vanna's lawn by mistake. vanna peers out her window and sees ann mowing, yet says nothing to ann about her mistake since vanna needs to have her lawn mowed. when ann approaches vanna for payment, vanna refuses, arguing that she never asked ann to mow her lawn. under these circumstances, ann can recover payment from vanna under:
Answers: 1
Business, 22.06.2019 20:30
Casey communications recently issued new common stock and used the proceeds to pay off some of its short-term notes payable. this action had no effect on the company's total assets or operating income. which of the following effects would occur as a result of this action? a. the company's current ratio increased.b. the company's times interest earned ratio decreased.c. the company's basic earning power ratio increased.d. the company's equity multiplier increased.e. the company's debt ratio increased.
Answers: 3
Prior to 2020, Gonzo record bad debt expense at a rate of 3% of net sales. Based on improving econom...
Mathematics, 18.03.2021 02:50
Mathematics, 18.03.2021 02:50
Social Studies, 18.03.2021 02:50
Chemistry, 18.03.2021 02:50
English, 18.03.2021 02:50
Physics, 18.03.2021 02:50
Chemistry, 18.03.2021 02:50
Mathematics, 18.03.2021 02:50
English, 18.03.2021 02:50