Ayayai corp. uses the percentage of receivables method for recording bad debts expense. the accounts receivable balance is $200,000 and credit sales are $1,000,000. management estimates that 4% of accounts receivable will be uncollectible.
what adjusting entry will ayayai corp. make if the allowance for doubtful accounts has a credit balance of $2,000 before adjustment?

a. bad debt expense 8,000; allowance for doubtful accounts8,000
b. bad debt expense 6,000; allowance for doubtful accounts 6,000
c. bad debt expense 6,000; accounts receivable 6,000
d. bad debt expense 8,000; accounts receivable 8,000

Awidower devised his fee simple interest in his residence as follows: “to my daughter for life, then to my oldest grandchild who survives her.” at the time of the widower’s death, he was survived by his only two children, a son and a daughter, and by one grandchild, his daughter’s son. a short time later, the daughter together with her son entered into a contract to sell the residence in fee simple to a buyer. the applicable jurisdiction continues to follow the common law rule against perpetuities, but has abrogated the rule in shelley’s case. at the closing, the buyer refused to purchase the residence. can the sellers compel the buyer to do so?

Asmartphone manufacturing company uses social media to achieve different business objectives. match each social media activity of the company to the objective it the company achieve.

Ardmore farm and seed has an inventory dilemma. they have been selling a brand of very popular insect spray for the past year. they have never really analyzed the costs incurred from ordering and holding the inventory and currently fave a large stock of the insecticide in the warehouse. they estimate that it costs $25 to place an order, and it costs $0.25 per gallon to hold the spray. the annual requirements total 80,000 gallons for a 365 day year.a. assuming that 10,000 gallons are ordered each time an order is placed, estimate the annual inventory costs.b. calculate the eoq.c. given the eoq calculated in part b., how many orders should be placed and what is the average inventory balance? d. if it takes seven days to receive an order from suppliers, at what inventory level should ardmore place another order?