Answered step by step
Verified Expert Solution
Question
1 Approved Answer
i have a question about 15,19 and 20 please advise thank you 15.) Purrloin Boutique resells cat clothing and accessories. One of its main suppliers
i have a question about 15,19 and 20
15.) Purrloin Boutique resells cat clothing and accessories. One of its main suppliers is Meowth Industries offers credit terms of 3/15,n/90. What can be said of these credit terms? A. A 15% discount is available to Purrloin if they pay their account in 3 days. B. A 3% discount is available to Purrloin if they pay in 90 days. C. A 15% discount is available to Purrloin if they pay their account in 90 days. D. Purrloin has 90 days to pay any outstanding credit balance. 19.) Indiana Jones Adventure Tours has the following year-end data; $775,000 in credit sales, $250,000 in accounts receivable, and a $10,000 debit balance in its allowance for doubtful accounts account. It estimates 6% of its credit sales will be uncollectible. What is the company's bad debt expense for the year? A. $15,000 B. $25,000 C. $46,500 D. $56,500 20.) If a company has to write-off an uncollectible account (assuming the percent of sales method), how will this write-off impact the company's net income? A. the write-off will decrease net income. B. the write-off will increase net income. C. the write-off will have no impact on net income. D. the write-off should not be recorded under the percent of sales method please advise
thank you
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started