Business, 12.10.2021 01:00 cbrpilot1151
Norma Smith is the controller of Bramble Corporation and is responsible for the preparation of the year-end financial statements. For each of the following transactions that occurred during the year, indicate the dollar amount to be reported as a current liability as of December 31, 2020.
a. On December 20, 2014, a former employee filed a legal action against Baylor for $100,000 for wrongful dismissal. Management believes the action to be frivolous and without merit. The likelihood of payment to the employee is remote.
b. Bonuses to key employees based on net income for 2014 are estimated to be $150,000.
c. On December 1, 2014, the company borrowed $600,000 at 8% per year. Interest is paid quarterly.
d. Credit sales for the year amounted to $10,000,000. Baylorâs expense provision for doubtful accounts is estimated to be 3% of credit sales.
Answers: 1
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