Which of the following is a generally accepted method of determining the amount of the adjustment to bad debt expense?
a. A percentage of sales adjusted for the balance in the allowance
b. A percentage of sales not adjusted for the balance in the allowance
c. A percentage of accounts receivable not adjusted for the balance in the allowance
d. An amount derived from aging accounts receivable and not adjusted for the balance in the allowance
Answer: b. A percentage of sales not adjusted for the balance in the allowance
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Which of the following statements is not consistent with the marketing concept?
A) The focus of a business is not profits but customers. B) A business should have competitor focus. C) Customer needs should be served at all costs. D) A business need not serve unprofitable customer segments.
In a case in the text, even though a jury found a partner not guilty of malpractice in his treatment
of a patient and found his partner guilty, the appellate court ruled that both parties were still jointly and severally liable for damages awarded for injuries sustained by the patient. Indicate whether the statement is true or false