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The ledger of Salizar Company at the end of the current year shows Accounts Receivable $110,000, Sales $840,000, and Sales Returns and Allowances $40,000.
Instructions Using Microsoft Excel
(a) If Allowance for Doubtful Accounts has a credit balance of $2,500 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be (1) 1% of net sales, and (2) 10% of accounts receivable.
(b) If Allowance for Doubtful Accounts has a debit balance of $500 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be (1) 0.75% of net sales and (2) 6% of accounts receivable.
Hults Corporation has provided data regarding the company's Manufacturing Overhead account for month of November.
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Distinguish between discretionary and committed fixed costs.
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Which of the following industries is likely to have the lowest costs of financial distress? Which of the following industries likely to have the highest costs of financial distress?
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