One negativeeffect of carrying too much inventory is risk that customers will change their buying habits.
a. True
b. False
Indicate whether the statement is true or false
Question 2
Y Company has the following accounting balances at the end of the year before adjustments:
Accounts receivable 25,000
Allowance for uncollectible accounts (1,000)
Net sales 200,000
Bad debts expense 0
The company estimates that 20 of accounts receivable will be uncollectible. After the correct adjusting entry has been made, which of the following is correct about Bad debts expense for the year and Allowance for uncollectible accounts at the end of the year?
A) Bad debts expense will be 4,000 on the income statement and Allowance for uncollectible accounts will be (5,000) on the balance sheet.
B) Bad debts expense will be 4,000 on the income statement and Allowance for uncollectible accounts will be (4,000) on the balance sheet.
C) Bad debts expense will be 5,000 on the balance sheet and Allowance for uncollectible accounts will be (5,000) on the income statement.
D) Bad debts expense will be 5,000 on the income statement and Allowance for uncollectible accounts will be (5,000) on the balance sheet.
Buying a Telescope
Caleb Goodwin, Inventory of Slaves and Livestock.
Risk factors for suicide.
Identifying the Causes of Climate Change
Manage First: Inventory and Purchasing
Change in Blood Pressure through the Systemic Circuit