The ledger of Entity G at the end of the current year shows Accounts Receivable of $350,000. Bad debts are expected to be 5% of Accounts Receivable. Allowance for Doubtful Accounts has a credit balance of $2,000 in the trial balance. The adjusting entry at the end of the current year would include:

a)a credit to Allowance for Doubtful Accounts

b)a credit to Bad Debt Expense

c)a debit to Allowance for Doubtful Accounts

d)a credit to Accounts Receivable

Which of the following is an example of an investing activity?

a)Selling merchandise to customers on account.

b)Purchasing supplies to be consumed this period.

c)Purchasing an office building.

d)Issuing shares of common stock for cash.

Entity H has total assets of $800,000 and total liabilities of $500,000. If Entity H borrows $150,000 on a long-term bank loan, what will its new debt/total assets ratio be (round if necessary)? a)71% b)68% c)81% d)53%