Author Question: Midway Company had a balance of (500) in its allowance for uncollectible accounts. Aging of its ... (Read 74 times)

sabina · **on:** Jul 5, 2018

Midway Company had a balance of (500) in its allowance for uncollectible accounts. Aging of its accounts receivable revealed that the allowance should be (1,400). The amount of bad debts expense for the period should be ________.

A) 500
B) 900
C) 1,400
D) 1,900

Question 2

Before lending money to Brokah, Inc., you should calculate Brokah's current ratio to measure its ________.

A) liquidity, i.e., its ability to pay its current debts as they come due
B) ability to turn its noncurrent liabilities into current liabilities
C) profitability
D) ability to turn its noncurrent assets into current assets