During 2017, vlad company has credit sales of $100,000. on december 31, 2017 vlad has a balance in accounts receivables of $45,000. vlad estimates that 3% of credit sales will be uncollectable. what is the adjusting journal entry that vlad should make based on this information? debit bad debt expense $45,000; credit allowance for doubtful accounts $45,000 debit bad debt expense $3,000; credit allowance for doubtful accounts $3,000 debit allowance for doubtful accounts $1,350; credit bad debt expense $1,350 debit bad debt expense $3,000; credit accounts receivable $3,000 3 points question 2

At the end of the week, carla receives her paycheck and goes directly to the bank after work to make a deposit into her savings account. the bank keeps the required reserve and then loans out the remaining balance to a qualified borrower named malik as a portion of his small business loan. malik uses the loan to buy a tractor for his construction business and makes small monthly payments to the bank to payback the principal balance plus interest on the loan. the bank profits from a portion of the interest payment received and also passes some of the interest back to carla in the form of an interest payment to her savings account. in this example, the bank is acting

Pear co.’s income statement for the year ended december 31, as prepared by pear’s controller, reported income before taxes of $125,000. the auditor questioned the following amounts that had been included in income before taxes: equity in earnings of cinn co. $ 40,000 dividends received from cinn 8,000 adjustments to profits of prior years for arithmetical errors in depreciation (35,000) pear owns 40% of cinn’s common stock, and no acquisition differentials are relevant. pear’s december 31 income statement should report income before taxes of

Carlton industries is considering a new project that they plan to price at $74.00 per unit. the variable costs are estimated at $39.22 per unit and total fixed costs are estimated at $12,085. the initial investment required is $8,000 and the project has an estimated life of 4 years. the firm requires a return of 8 percent. ignore the effect of taxes. what is the degree of operating leverage at the financial break-even level of output?