Alberta's Appliances is a wholesaler that sells to retail stores on credit. To provide for possible bad debts, Alberta established a $32,000 allowance for uncollectible accounts
One of its customers goes bankrupt and Alberta decided to write off the account as uncollectible. What journal entry should Alberta make to record the bankruptcy?
a. debit bad debts expense; and credit accounts receivable
b. debit bad debts expense; and credit allowance for uncollectible accounts
c. debit sales revenues; and allowance for uncollectible accounts
d. debit allowance for uncollectible accounts; and credit accounts receivable
d
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William, Irene, Jason, Barbara, and Immunographics, Inc., form a partnership for the purposes of developing designs for medical products. This partnership is:
a.) invalid because corporations cannot be a partner in a partnership. b.) invalid because a partnership cannot have more than three members. c.) valid because corporations can be a partner in a partnership. d.) valid because partnerships generally require at least one corporation as a partner.
The plowback ratio is:
A. equal to net income divided by the change in total equity. B. the percentage of net income available to the firm to fund future growth. C. equal to one minus the retention ratio. D. the change in retained earnings divided by the dividends paid. E. the dollar increase in net income divided by the dollar increase in sales.