7 A business maintains a provision for doubtful debts of 5% per annum. It has trade receivables
balances of $560 000 at the start and $468 000 at the end of the financial year,
Which statements are correct?
1 Customers' accounts have been credited with $4600.
2 $4600 is treated as income in the income statement.
3 $4600 is deducted from current assets in the statement of financial position,
A 1, 2 and 3 B 1 only C 2 only
D 2 and 3 only

Martha is the head of the accounts department in a small manufacturing company. the company follows the accrual-basis method of accounting. it recently purchased raw materials worth $5,000 from its vendors. however, the company paid only $3,000 to its vendors. it plans to pay the remaining amount after three months. considering this information, which entry should martha record in the company’s accounts? a. $5,000 as accounts receivable b. $3,000 as accounts payable c. $2,000 as accounts payable d. $2,000 as accounts receivable

land, a building and equipment are acquired for a lump sum of $ 1,000,000. the market values of the land, building and equipment are $ 300,000, $ 800,000 and $ 300,000, respectively. what is the cost assigned to the equipment? (do not round any intermediary calculations, and round your final answer to the nearest dollar.)

Abank has $132,000 in excess reserves and the required reserve ratio is 11 percent. this means the bank could have in checkable deposit liabilities and in (total) reserves.