Kidney Company Has a Wholly-Owned Foreign Subsidiary Which Has a $15,000

question 34

Multiple Choice

Kidney Company has a wholly-owned foreign subsidiary which has a $15,000 credit translation adjustment in the current year.Kidney has taken out a loan denominated in the foreign currency in which the subsidiary operates as a hedge of its net investment in the foreign entity.The value of the loan increased $18,000 in the current year.What is the impact of the change in the loan value?

• A)​Debit other comprehensive income $18,000.
• B)​Credit other comprehensive income $18,000.
• C)​Debit other comprehensive income $15,000; debit income $3,000.
• D)​Debit other comprehensive income $3,000; credit income $15,000.

Understand the impact of write-offs on the carrying amount of accounts receivable.

Comprehend the effect of the allowance method for uncollectible accounts on financial statements.

Recognize how bad debts expense is reported and calculated under the allowance method.

Identify the normal balance and classification of the Allowance for Doubtful Accounts.