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please answer 43-46 43. Your company, which dvance to cover a 3-year insurance which uses accrual basis accounting, pays $18,000 in ar insurance premium and
please answer 43-46
43. Your company, which dvance to cover a 3-year insurance which uses accrual basis accounting, pays $18,000 in ar insurance premium and debits Prepaid Insurance, surance expense has your company incurred after 1 year has How much insuran elapsed? $18,000 b. $12,000 c. $6.000 d. $0 information for Questions 44 and 45: Your company shows Use the following informa the following data at llowing data at the end of its first year Credit sales for the year Accounts Receivable balance Allowance for Doubtful Accounts $1,000,000 100,000 4,000 credit balance 44. If bad debt i Tchad debt is estimated as 1% of credit sales, the adjusting entry for bad debt expense includes a debit for.. a. $14,000. b. $10,000. c. $6,000. d. $0. 25. If your company estimates that it will not collect 5% of its accounts receiv- able, the year-end adjustment to Allowance For Doubtful Accounts will be a. a credit of $1,000. b. a credit of $5,000. c. a debit of $1,000. d. a debit of $5,000. 46. If December 1, your company opens for business and leases space in a building for $1,000 per month and pays 3 months' rent in advance. On December 31, the balance in Rent Expense is $3,000, it means that the advance payment for rent was recorded in .. a. Prepaid Rent, which must now be credited for $1,000. b. Rent Expense, which must now be credited for $2,000, c. Prepaid Rent, which must now be debited for $1,000 d. Rent Expense, which must now be debited for $2,000 Step by Step Solution
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