Business Focus B2C B2B Total A survey of B2B marketers (marketers that focus primarily on attracting businesses) and B2C marketers (marketers that primarily target consumers) was based on 1000 B2B….
Impact on profit and the balance sheet
Impact on profit and the balance sheet
Indicate the impact that each of the following errors or omissions would have on a company’s 2019 net profit, assets and liabilities. Use the symbols U = understate, O = overstate or NE = no effect to indicate the impact. Dollar amounts are not required. 1 Management uses the percentage-of-sales approach method to calculate the allowance for doubtful accounts. Management calculated the allowance for doubtful debts on the basis of 2 per cent of sales. However by year-end it was aware that the rate should have really been 3 per cent of sales. Management does not adjust the allowance for doubtful accounts at year-end. Sales equal $1 million.