Jethro Company, an accrual basis taxpayer, had a $10,000 overdue account payable to a major supplier. The supplier agreed to settle the account for $9,000 cash from Jethro. Which of the following statements is true?
A. Jethro recognizes $1,000 income because of the settlement.
B. Jethro recognizes no income because of the settlement.
C. Jethro can deduct the $9,000 payment.
D. Jethro can deduct a $1,000 bad debt expense.
Answers: 1
Another question on Business
Business, 22.06.2019 10:30
On july 1, oura corp. made a sale of $ 450,000 to stratus, inc. on account. terms of the sale were 2/10, n/30. stratus makes payment on july 9. oura uses the net method when accounting for sales discounts. ignore cost of goods sold and the reduction of inventory. a. prepare all oura's journal entries. b. what net sales does oura report?
Answers: 2
Business, 22.06.2019 11:00
Samantha is interested in setting up her own accounting firm and wants to specialize in the area of accounting that has experienced the most significant growth in recent years. which area of accounting should she choose as her specialty? samantha should choose as her specialty.
Answers: 1
Business, 22.06.2019 11:30
10. lucy is catering an important luncheon and wants to make sure her bisque has the perfect consistency. for her bisque to turn out right, it should have the consistency of a. cold heavy cream. b. warm milk. c. foie gras. d. thick oatmeal. student d incorrect
Answers: 2
Business, 22.06.2019 11:40
Vendors provide restaurants with what? o a. cooked items ob. raw materials oc. furniture od. menu recipes
Answers: 1
You know the right answer?
Jethro Company, an accrual basis taxpayer, had a $10,000 overdue account payable to a major supplier...
Questions
Social Studies, 13.04.2020 22:23
History, 13.04.2020 22:23
Biology, 13.04.2020 22:23
Mathematics, 13.04.2020 22:23
Spanish, 13.04.2020 22:23
Mathematics, 13.04.2020 22:23
Mathematics, 13.04.2020 22:23
Mathematics, 13.04.2020 22:23
Chemistry, 13.04.2020 22:24
History, 13.04.2020 22:24
