Determine which of the given statements is correct.

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Chapter 11, Problem 6STQ

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Determine which of the given statements is correct.

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Emma's Clothes, Inc. has accounts receivable of $210,000. In the current economy, she has noticed an increase in uncollectible accounts. In 2022, her sales were $3,510,000 and in 2023, sales were $3,810,000. Before 2023, she estimated that 3% of sales would eventually be uncollectible. In 2023, Emma believes that her losses were closer to 4% in 2022. What should be the bad debt expense for 2022 and 2023 in the comparative income statements for 2022 and 2023? A. 2022, $140,400; 2023, $292,800 OB. 2022, $140,400; 2023, $152,400 OC. 2022, $105,300; 2023, $152,400 OD. 2022, $105,300; 2023, $292,800

Big Ben Service reported a decrease in income taxes payable of $4,300 during the year and an increase in deferred-tax liability of $2,800. Its income tax expense was $2,400. Requirements a. What is cash paid for income taxes? b. What would Big report in the operating section of the cash flow statement under the indirect method? Requirements a. What is cash paid for income taxes? Compute the cash paid for income taxes under the direct method. (Use a minus sign or parentheses for any numbers to be subtracted. If an input field is not used in the statement, leave the field empty; do not select a label or enter a zero.) Cash Paid for Income Taxes: Cash Paid for Income Taxes Requirements b. What would Big report in the operating section of the cash flow statement under the indirect method? Under the indirect method, to arrive at operating cash flow, Big will the $2,800 increase in the deferred tax liability to net income, and the $4,300 decrease in income taxes payable from net income.

Prepare General Journal for Go systems week ended February 5