When a company is using the direct write-off method, and an account is written off, the journal entry consists of a ________
A) debit to Accounts Receivable and a credit to Cash
B) credit to Accounts Receivable and a debit to Bad Debts Expense
C) debit to the Allowance for Bad Debts and a credit to Accounts Receivable
D) credit to Accounts Receivable and a debit to Interest Expense
B
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Larry Cable Inc. plans to introduce a new product and is using the target cost approach. Projected sales revenue is $810,000 ($4.05 per unit) and target costs are $730,000. What is the desired profit per unit?
a) $0.40 b) $2.03 c) $3.65 d) None of the above
With regard to consumer products, which of the following is the major limitation of the Internet?
A. Knowledge of how to use the Internet. B. Coverage of the Internet. C. Government regulations on the use of the Internet. D. Difficulty in tracking the effectiveness of advertisements on the Internet. E. Cost of using the Internet.