Author Question: Employers may use the wage-bracket method to determine the amount of tax to be withheld from an ... (Read 61 times)

xroflmao · **on:** Jul 5, 2018

Employers may use the wage-bracket method to determine the amount of tax to be withheld from an employee's pay.
a. True
b. False
Indicate whether the statement is true or false

Question 2

X Company has the following accounting balances at the end of the year before adjustments:

Accounts receivable 50,000
Allowance for uncollectible accounts (1,000)
Net sales 100,000
Bad debts expense 0

The company estimates that 2 of net sales 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 2,000 on the income statement and Allowance for uncollectible accounts will be (3,000) on the balance sheet.
B) Bad debts expense will be 3,000 on the income statement and Allowance for uncollectible accounts will be (2,000) on the balance sheet.
C) Bad debts expense will be 3,000 on the balance sheet and Allowance for uncollectible accounts will be (3,000) on the income statement.
D) Bad debts expense will be 1,000 on the income statement and Allowance for uncollectible accounts will be (2,000) on the balance sheet.