On January 1st, 2015, Everlight Corp

question 25

Multiple Choice

On January 1st, 2015, Everlight Corp. has the following balances: During the year, Everlight has $150,000 of credit sales, collections of credit sales of $140,000, and write-offs of $3,000. It records bad debts expense at the end of the year using the aging-of-receivables method. At the end of the year, aging analysis produces a figure of $1,900, being the estimate of uncollectible accounts. Before the year-end entry to adjust the bad debts expense is made, the balance in the Allowance for Bad Debts expense would be:

• A)debit of $1,800.
• B)credit of $4,200.
• C)zero balance.
• D)debit of $3,000.

Explain the processes through which organizations integrate and adapt to their cultures.

Understand the concept of subcultures and countercultures within an organization.

Define innovation in organizations and describe the steps involved in the innovation process.

Discern how organizational cultures impact innovation and change management.

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Definitions:

Safe Harbor

Legal provisions that protect parties from liability or penalties under specific conditions if they act in good faith.

Private Securities Litigation Reform Act

A 1995 U.S. law that aims to reduce frivolous or unnecessary securities lawsuits through various procedural and substantive changes.

Financial Forecasts

Projections of a company's future income, expenses, and capital requirements, based on assumptions about economic conditions, market trends, and business operations.

Affiliate

A business enterprise located in one state that is directly or indirectly owned and controlled by a company located in another state. Also called foreign subsidiary.