"Jim uses a fixed order interval approach to managing his inventory of corn chip bags (i. e., Jim orders more bags on the 1st of each month). Jim doesn't know demand with certainty, but he usually ranges from 2000 to 4000 bags sold a month, so he keeps 4500 bags in stock. Last month Jim used 2750 bags. Using the periodic review (P) system, how many bags will Jim order this month?"

Acompany has $80,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. experience suggests that 6% of outstanding receivables are uncollectible. the current credit balance (before adjustments) in the allowance for doubtful accounts is $1,200. the journal entry to record the adjustment to the allowance account includes a debit to bad debts expense for $4,800. true or false