An Employee of Macro

question 3

Multiple Choice

An employee of Macro.com Corporation is paid $5,000 a month, which she spends regularly throughout the month until she has a zero balance in her checking account at the end of the month.If the corporation changes to a semimonthly payroll schedule, how will the employee's average cash balance change? Assume she does not change her spending pattern when she is now paid twice a month.

• A)It changes from $5,000 to $2,500 per month.
• B)It changes from $2,500 to $1,250 per month.
• C)It changes from $1,250 to $625 per month.
• D)It changes from $500 to $250 per month.

Understand and differentiate various methods of accounting for uncollectible accounts receivable.

Perform journal entries for sales transactions, including those involving credit sales and credit card sales.

Explain and calculate bad debt expense using the allowance method.

Calculate and analyze the accounts receivable turnover ratio.

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Definitions:

Contracts

Legal agreements between two or more parties that outline the terms, conditions, roles, and responsibilities of a project or business arrangement.

Environment

The ecological or contextual area in which a specific entity operates, including all biological, chemical, and physical conditions affecting it.

Trust

The reliance on the integrity, strength, ability, or surety of a person or thing; cornerstone in relationships and transactions.

Stress

A physical or psychological response to internal or external pressures, often characterized by feelings of strain or tension.