. Estimate the balance of the Allowance for Doubtful Accounts using percent of sales method. Assume a $0 existing balance in Allowance for Doubtful Accounts. Hint: Identify the percent of uncollectible for credit sales. 2. Estimate the balance of the Allowance for Doubtful Accounts using percent of receivables method. Assume a $0 existing balance in Allowance for Doubtful Accounts. Hint: Identify the percent of uncollectible for accounts receivable.
Answers
Answer:
Note: The question is attached below as picture
1. Bad debt expense under percentage of sales method = Credit sales * Percentage of doubtful account
= $7,150,000 * 1%
= $71,500
2. Balance in Allowance for doubtful account under percentage of receivables method = Accounts receivable balance at end * % of doubtful account
= $1,220,000 * 5%
= $61,000
3. Age Amount % of Un-collectible Estimated Balance of
account uncollectible account
Not due yet 830000 2% 16600
1-30 254000 3% 7620
31-60 86000 7% 6020
61-90 38000 33% 12540
over 90 day 12000 68% 8160
Total $50,940
The estimated balance in allowance for doubtful account at end = $50,940
Related Questions
The doctrine that allows for a more flexible use of copyrighted material such as for educational purposes is known as _____.
Answers
Answer:
where are the options for these questions
What is division of labor?
O A. This is when an individual focuses on many different skills and
aspects of a business.
B. This is when an organization can produce goods more cost
effectively when it produces higher volumes of that good.
C. This is when an organization is able to produce goods at a lower
cost and sell for a lower cost to make a profit.
D. Another name for specialization, this is when an individual focuses
on one specific skill in the field.
Answers
Division of labor is another name for specialization, this is when an individual focuses on one specific skill in the field. Thus, the correct answer is option D.
What is division of labor?The separation of tasks in any economic system or organization so that participants can specialize is referred to as the division of labor (specialization). Individuals, organizations, and nations are endowed with or acquire specialized capabilities, and they either form alliances or trade to benefit from the abilities of others in addition to their own.
The division of labor is the division of a work process into a number of tasks, each of which is performed by a different person or group of people. It is most commonly used in mass production systems and is one of the basic organising principles of the assembly line. The motivation for trade and the source of economic interdependence is the division of labor.
Therefore, division of labor occurs when an individual focuses on one specific skill in the field.
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When an analyst is looking at a company for the first time, which of the following four activities does he do first?
a) defines the industries in which the company operates
b) sizes the market in which the company sells
c) Calculates the companys market share
d) estimates the breakdown of the companys cost base
Answers
Answer:
a) defines the industries in which the company operates
Explanation:
In the case when the analyst begins to analyze the company so the first thing he see the industry how it operates whether it is understanble or not after that the growth should be potential or not
So here the option a is correct as it describe the industries in which the company would operates
So the same is to be considered for the first time
After the patent runs out on a brand name drug, generic drugs enter the market. What happens next in the market? a. Price decreases, and total surplus decreases. b. Price increases, and total surplus increases. c. Price increases, and total surplus decreases. d. Price decreases, and total surplus increases.
Answers
Answer:
d. Price decreases, and total surplus increases.
Explanation:
In the case when the patent runs the name of the brand i.e. drug, and the generic drugs entered into the market so here the price would be reduced and on the other hand the total surplus i.e. consumer and producer would rise.
Therefore as per the given situation, the option d is correct
hence, all the other options are incorrect
Crane Company has accounts receivable of $96,600 at March 31, 2022. Credit terms are 2/10, n/30. At March 31, 2022, there is a $2,287 credit balance in Allowance for Doubtful Accounts prior to adjustment. The company uses the percentage-of-receivables basis for estimating uncollectible accounts. The company’s estimates of bad debts are as shown below. Balance, March 31 Estimated Percentage UncollectibleAge of Accounts 2022 2021Current $65,600 $75,150 2%1–30 days past due 13,500 7,870 5 31–90 days past due 9,800 2,630 28 Over 90 days past due 7,700 1,140 47 $96,600 $86,790Determine the total estimated uncollectibles at March 31, 2022.Total estimated uncollectibles $Enter a dollar amount Prepare the adjusting entry at March 31, 2022, to record bad debt expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)Account Titles and Explanation Debit CreditEnter an account title Enter a debit amount Enter a credit amountEnter an account title Enter a debit amount Enter a credit amount
Answers
Answer:
Period Accounts % Uncollectibles Bad debt
receivables 2017 expense
Current $65,600 2% $1,312
1 - 30 days past due $13,500 5% $675
31 - 90 days past due $9,800 28% $2,744
Over 90 days past due $7,700 47% $3,619
Total $96,600 $8,350
So, the total estimated uncollectibles is $8,350
Date Account Titles and Explanation Debit Credit
31-03-2017 Bad debt expense $6,063
($8350 - $2287)
Allowance for Doubtful accounts $6,063
(Being adjustment entry to record bad debts recorded)
The Sons of Knute had a hunting lodge up on Loon Lake which burned down last winter. They plan to rebuild it this summer and are trying to decide how large the new lodge should be. The organization has 50 members. The marginal rate of substitution of each of them between square feet of hunting lodge and money for other goods is 1.2-.0004y where y is the size of the hunting lodge in square feet. What is the ecient size for the new hunting lodge?
Answers
Answer:
y = 2,250 sq.ft
Hence, 2,250 sq.ft is the efficient size for the new hunting lodge.
Note: It can vary according to the cost per sq.ft. In this problem, we have assumed it as $15.
Explanation:
Data Given:
Organization members = 50
Equation given = 1.2 - 0.0004y = for the goods and size of the lodge.
where, y is the size of the hunting lodge in sq.ft.
Required = What is the efficient size for the new hunting lodge? = So, we need to find the value of y.
Solution:
First of all, we need to assume the cost for each sq.ft required to build this hunting lodge. As we have not given the cost. If we do not put the value then we will get a general answer in terms of variables. So, it is better to assume some value.
Let's assume the value = $15 per sq.ft
And we have 50 members in the organization so, multiply it with the equation given above.
X = 50 x (1.2 - 0.0004y)
X = 60 - 0.02y
So in order to find y, we need to equate this X to our assumed value of $15.
60 - 0.02y = 15
60 - 15 = 0.02y
45 = 0.02y
y = 2,250 sq.ft
Hence, 2,250 sq.ft is the efficient size for the new hunting lodge.
Note: It can vary according to the cost per sq.ft. In this problem, we have assumed it as $15.
Zoom sales last year were $435,000, its operating costs including Depreciation were $362,500, and its interest charges were $12,500. What was the firm's times-interest-earned (TIE) ratio?
Answers
Answer:
374,000
Explanation:
because 362,500 plus 4,000 equals 364,500 add the last 10,000 and you have 374,500 add the 500 and now you have 375k
The firm's Times-interest earned ratio will be 5.8 times. This can be obtained from the formula of TIE ratio after necessary calculation involving earnings before interest, taxes, depreciation and appreciation.
In the example given above all the value are calculated and found the answers as EBITDA comes down to $72500. Whereas the interest charges are given- $12500.
The formula to calculate the TIE ratio of zoom is as follows.
[tex]Times\ Interest\ Earned=\dfrac{\rm{EBITDA}}{\rm{interest\ charges}}[/tex]
By putting the values in the above formula we get values as 72500 / 12500
[tex]Times\ interest\ earned=\dfrac{\rm{435000-362500}}{\rm{12500}}\\\\\\Times\ Interest\ earned = \dfrac{72500}{12500}[/tex]
Hence the times interest earned comes down to 5.8 times.
The correct solution will be 5.8 times the interest has been earned above the charges actually born.
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what is income demand curve?
Answers
Clayborn Company' bank reconciliation as of May 31 is shown below.
Bank balance $ 15,800 Book balance $ 17,025
+ Deposit in transit 5,200 Bank service fees −25
− Outstanding checks −4,600 NSF returned −600
Adjusted bank balance $16,400 Adjusted book balance $ 16,400
One of the adjusting journal entries that Clayborn must record as a result of the bank reconciliation includes:
a) A debit to cash of $25
b) A debit to Cash of $625
c) A debit to Cash of $5,200
d) A credit to Cash of $600
e) A credit to Cash of $4,600
Answers
Answer:
d) A credit to Cash of $600
Explanation:
The adjusting journal entries are shown below:
Bank service fees expense $25
To Cash $25
(Being bank service charge expensed)
Here the expenses is debited as it increased the expenses and credited the cash as it decreased the asset
Accounts Receivable $600
To Cash $600
(Being NSF returned is recorded)
Here the account receivable is debited as it increased the assets and credited the cash as it decreased the asset
So option d is correct
The importance of cash flows in the absolute valuation process is most similar to which of the following? a) A student deciding to attend law school, because she forgoes a full- time job today in hopes of a well-paying job in the future b) A government giving a tax break to wind farms, because it values future energy independence more than the cost of the subsidy to encourage alternative energy development c) A fishery exceeding fishing quotas, because it values short-term income more than long-term fishing stock d) A fitness instructor avoiding soda and candy, because he gives up foods he enjoys in order to live a healthier, longer life
Answers
Answer: c) A fishery exceeding fishing quotas, because it values short-term income more than long-term fishing stock
Explanation:
Absolute valuation is a valuation method used by businesses whereby the financial worth of a company is determined through the use of a discounted cash flow. Through this, the investors can know whether a stock is either overvalued or undervalued.
Based on the question, thee importance of cash flows in the absolute valuation process is most similar to a fishery exceeding fishing quotas, because it values short-term income more than long-term fishing stock.
Isabella moved from Spain to the United States in 2019. She worked and filed a Form 1040 reporting her income. She received a letter requesting more information, but unfortunately she does not understand the letter. What form or schedule should she use to request information in Spanish
Answers
Answer:
Schedule 3911
Explanation:
Since in the question it is mentioned that isabella shifted from spain to the united states in the year 2019. She worked and filed form no 1040 for reporting her income. Now she received a letter regarding more information but she is not able to understand the letter so in order to request the information in spanish she use the schedule 3911. It is a statement that shows the refund status
So, the same is relevant
Journalize the following entries on the books of Winston Co. for August 1, September 1, and November 30. (Assume a 360-day year is used for interest calculations.)
Aug. 1 Winston Co. purchased merchandise for $75,000 on account from Bagley Co., terms n/30.
Sept. 1 Winston Co. issued a 90-day, 6% note for $75,000 on account.
Nov. 30 Winston Co. paid the amount due.
Answers
Answer: PLease see explanation for answers
Explanation:
Journal to record Purchase of Inventory
Date Account Title Debit Credit
Aug.1 Merchandise Inventory $75,000
Bagley Co. $75,000
To record Issue of Note
Sep 1 Bagley Co. $75,000
6% Note Payable $75,000
To Record Payment of Note at due date
Nov 30 6% Note Payable $75,000
Interest Expenses $1,125
Cash $76,125
Calculation
Interest expense = Principal x rate x Time
= $75,000 x 60 x 90/360
=$1,125
Joel owns the following portfolio of securities. What is the beta for the portfolio?Company Beta Percent of PortfolioExxon-Mobil .95 40%Pacific Industries 1.20 35%Payson Restaurants 1.35 25%A) 1.0000B) 0.9500C) 1.1375D) 1.1705
Answers
Answer:
the beta of the portfolio is 1.1375
Explanation:
The computation of the beta of the portfolio is as follows:
= Company beta × portfolio percentage
= 0.95 × 0.40 + 1.20 × 0.35 + 1.35 × 0.25
= 0.38 + 0.42 + 0.3375
= 1.1375
Hence the beta of the portfolio is 1.1375
We simply applied the above formula so that the correct beta could come
What is an important quality that promotion and marketing managers need to have?
They like to work alone.
Customers are always looking for new products and services to improve their way of life.
Customers will work more closely with advertising, promotional and marketing managers in the future.
They need to be able to communicate well.
Answers
Answer:
well they need to have good marketing to get poeples attention and making them want to invest in such thing
If partner owned computers or IRS loaned computers or printers are lost or stolen, the partner is required to notify the IRS _____. Partners should provide all information that is readily available to the local SPEC Territory Office.
Answers
Answer:
If partner owned computers or IRS loaned computers or printers are lost or stolen, the partner is required to notify the IRS _immediately____. Partners should provide all information that is readily available to the local SPEC Territory Office.
Explanation:
All incidents of stolen and lost equipment must be reported to the IRS immediately, at least a day after the incident is reported. As part of the condition for the IRS-loaned equipment, partners are expected to report incidents of stolen and lost equipment not later than the next business day after the confirmation of the incident. If the lost or stolen equipment contained taxpayer PII data, the partner must report the loss of PII data based on the data breach guidance. This is why it is necessary to safely keep some information pertaining to the equipment, including the serial number, make, barcode, etc.
An economy consists of three workers: Brian, Edison, and Kevin. Each works 10 hours a day and can produce two services: mowing lawns and washing cars. In an hour, Brian can either mow 2 lawns or wash 1 car; Edison can either mow 1 lawn or wash 1 car; and Kevin can either mow 1 lawn or wash 2 cars.
For each of the scenarios listed below, determine how many lawns will be mowed and how many cars will be washed per day.
a. All three spend all their time mowing lawns. (A)
b. All three spend all their time washing cars. (B)
c. All three spend half their time on each activity. (C)
d. Tim spends half his time on each activity, while Brian only washes cars and Edison only mows lawns. (D)
Answers
Answer:
Brian can mow 2 lawns or wash 1 car in an hour. Edison can do one of each and Kevin can mow 1 lawn or wash 2 cars.
a. All three send their time mowing lawns:
= (2 * 10) + (1 * 10) + (1 * 10)
= 40 lawns
No cars washed.
b. All three spend all their time washing cars.
No lawns.
Cars washed = (1 * 10) + (1 * 10) + (2 * 10)
= 40 cars washed
c. All three spend half their time on each activity.
Half their time = 5 hours.
Lawns mowed = (2 * 5) + (1 * 5) + (1 * 5)
= 20 lawns mowed
Cars washed = (1 * 5) + (1 * 5) + (2 * 5)
= 20 cars washed
d. Kevin spends half his time on each activity, while Brian only washes cars and Edison only mows lawns. (D)
Lawns mowed = (1 * 5) + (1 * 10)
= 15 lawns mowed
Cars washed = (2 * 5) + (1 * 10)
= 20 cars washed
TrinkCan is a soda manufacturing company. People can buy the company's soda from grocery stores, restaurants, vending machines, and online. In this scenario, TrinkCan has adopted
Answers
Answer: A) multichannel retailing
Explanation:
Multichannel retailing refers to when a company distributes their goods and services through various channels as opposed to a single one so that their goods can gain maximum exposure. .
These companies use brick and mortar channels such as grocery stores and the internet which is becoming ever so popular. Some companies are able to use varied channels due to the nature of their goods such as vending machines and restaurants for soda companies.
In deciding whether to accept a special sales order which of the following costs are likely relevant?
A) Depreciation expense on manufacturing equipment.B) A portion of facilities-level costs.C) A portion of batch-level costs.D) Total batch-level costs.E) An allocated share of fixed manufacturing support costs.
Answers
Answer:
C) A portion of batch-level costs.
Explanation:
A special sales order is defined as a single time opportunity for the firm or for the business to sell a specific quantity of a product or a service in the market. It mainly comes from the customers directly and not from the various distribution channels or through other normal sales.
A special sales order is typically unexpected.
A batch level cost is the amount or price which is related to the group of units.
In determining whether to accept the special order sales or to reject the special sales order, a portion of the batch level cost is more relevant to the decision.
g sales on account 2,100,000 cash sales 1,110,000 cost of goods sold 1,575,000 What is the amount of cash payments to suppliers reported by one company
Answers
Answer:
$1,464,000
Explanation:
Note: The complete question set is attached as picture below
To determine the amount of cash payments to suppliers:
Particulars Amount
Cost of goods sold $1,575,000
Increase in inventory $72,000
Decrease in accounts payable -$183,000
Payment made to suppliers $1,464,000
Therefore, the amount of cash payments to suppliers is $1,464,000.
Select the true statement about the relationship between law, ethics, and business.
a. Ethical business practices and conduct have value only to the owners and managers of a business.
b. Ethical business practices and conduct generate goodwill that can be measured in the monetary value of a business.
c. Ethical business practices and conduct increase employee and customer satisfaction, but do not affect a business' bottom line.
d. Ethical business practices and conduct are more important to the short-term success of a business than the long-term.
Answers
Answer:
B
Explanation:
Ethical business practices generates goodwill. For example, if a firm is known to be ethical, individuals would be interested in doing business with them as a result of this. This can create goodwill when the ethical firm is sold
Ethical business practices benefits customers, owners and managers. It is also important for the long term success of the firm.
The reserve requirement is 20% and Leroy deposits his $1,000 check he received as a graduation gift in his checking account. The bank does NOT want to hold excess reserves. Which of the following is an accurate description of the bank's balance sheet immediately after the deposit?A. Reserves increase by $1000, and demand deposits increase by $1000.B. Reserves increase by $1000, and demand deposits decrease by $1000.C. Reserves decrease by $1000, and demand deposits decrease by $1000.D. Reserves decrease by $200, and demand deposits increase by $1000.
Answers
Answer:
A. Reserves increase by $1000, and demand deposits increase by $1000
Explanation:
Based on the information given the right description of the bank's balance sheet after the deposit is that the bank RESERVE will increase with the amount of $1,000 while the DEMAND DEPOSIT which is the deposit amount the customer can collect on demand on the other hand will as well increase with the amount of $1,000 reason been that the bank need RESERVE requirements because they need to have cash flow in their reserve in order to meet up with any liabilities that may arise due to customers withdrawal of fund.
What concerns do you have about managing distractions and obtaining the support you need to be successful
Answers
Answer:
The concerns about either the situations are defined following table.
Explanation:
Managing Distractions:
To evaluate the performance including its moment you start researching, working to recognize, and even get ahold of distractions. The effect would be an increased ability to concentrate mostly on tasks at hand, which ensures that you would rather concentrate and spend your attention increasingly constructively.External Study Environment:
During which your research paper could have a lot as far as how efficiently you analyze.Distractions:
Residence does seem to be famous because of its interruptions. Then again the parts of the country of the survey have been utilized for those certain operations.Suppose the following transactions occur during the current year:
a. Kenji orders 40 bottles of wine from a French distributor at a price of $30 per bottle.
b. A U.S. company sells 200 spark plugs to a Korean company at $5.00 per spark plug.
c. Hubert, a U.S. citizen, pays $670 for a surfboard he orders from Greatwaves (a U.S. company).
Complete the following table by indicating how the combined effects of these transactions will be reflected in the U.S. national accounts for the current year.
Amount(Dollars)
Consumption
Investment
Government Purchases
Imports
Exports
Net Exports
Gross Domestic Product (GDP)
Answers
Answer:
Imports = Bottle of wines
Imports = 40 * $30 = $1,200
Exports = Spark plugs
Exports = 200 * $5 = $1,000
Net Exports = Exports - Imports
Net Exports = $1,000 - $1,200
Net Exports = -$200
Consumption = Surfboard + Wines
Consumption = $670 + $1,200
Consumption = $1,870
Government purchase = $0
Investment = $0
GDP = C + I + G + NX
GDP = $1,870 + $0 + $0 + (-$200)
GDP = $1,870 + $0 + $0 - $200
GDP = $1,670
You are evaluating a project for The Ultimate recreational tennis racket, guaranteed to correct that wimpy backhand. You estimate the sales price of The Ultimate to be $400 per unit and sales volume to be 1,000 units in year 1; 1,250 units in year 2; and 1,325 units in year 3. The project has a 3-year life. Variable costs amount to $225 per unit and fixed costs are $100,000 per year. The project requires an initial investment of $165,000 in assets, which will be depreciated straight-line to zero over the 3-year project life. The actual market value of these assets at the end of year 3 is expected to be $35,000. NWC requirements at the beginning of each year will be approximately 20 per cent of the projected sales during the coming year. The tax rate is 34 per cent and the required return on the project is 10 per cent.
What will the cash flows for this project be?
Answers
Answer:
cash flow year 0 = -$245,000
cash flow year 1 = $82,700
cash flow year 2 = $157,075
cash flow year 3 = $300,837.50
Explanation:
expected sales year 1 = $400,000
expected sales year 2 = $500,000
expected sales year 3 = $530,000
initial investment = $-165,000
NWC increase for end of year 0 = -$80,000
NWC increase for end of year 1 = -$20,000
NWC increase for end of year 2 = -$6,000
NWC recovered at end of year 3 = $106,000
contribution margin per racket = $400 - $225 = $175
fixed cost per year = $100,000
depreciation rate per year = $165,000 / 3 = $55,000
after tax salvage value = $35,000 - ($35,000 x 34%) = $23,100
cash flow year 0 = -$165,000 - $80,000 = -$245,000
cash flow year 1 = {[(1,000 x $175) - $55,000] x 66%} + $55,000 - $20,000 = $82,700
cash flow year 2 = {[(1,250 x $175) - $55,000] x 66%} + $55,000 - $6,000 = $157,075
cash flow year 3 = {[(1,325 x $175) - $55,000] x 66%} + $55,000 + $106,000 + $23,100 = $300,837.50
When you establish a friendship with a supervisor at work, it is a good idea to establish __________ to prevent potential problems.
Answers
Answer:
Ground rules
Explanation:
Rules between the supervisor and staff would ensure that professionalism is maintained in the workplace and certain protocols are not breached.
Using the following variables, calculate an organization's cost of debt on a $500,000 bond.Rt: 1% credit-risk rate: 5% t: 15% a. $30,000 b. $25,500 c. $29,550 d. $4,500
Answers
Answer:
b. $25,500
Explanation:
$500,000 bond
Rt: 1%
Credit-risk rate: 5%
t: 15%
Cost of debt = 1% + 5%
Cost of debt = 0.01 + 0.05
Cost of debt = 0.06
After tax cost of debt = Cost of debt *(1 - t)
After tax cost of debt = 0.06*(1 - 0.15)
After tax cost of debt = 0.06*0.85
After tax cost of debt = 0.051
Cost of debt = After tax cost of debt * $500,000
Cost of debt = 0.051*(500,000)
Cost of debt = $25,500
So, the organization's cost of debt on the $500,000 bond is $25,500
An investor borrows an amount at an annual effective interest rate of 5% and will repay all interest and principal in a lump sum at the end of 10 years. She uses the amount borrowed to purchase a 1000 par value 10-year bond with 8% semiannual coupons bought to yield 6% convertible semiannually. All coupon payments are reinvested at a nominal rate of 4% convertible semiannually. Calculate the net gain to the investor at the end of 10 years after the loan is repaid.
a. 116
b.106
c. 111
d. 101
Answers
Answer:
d. 101
Explanation:
first we must determine the amount of the loan:
PV of face value = $1,000 / (1 + 3%)²⁰ = $553.68
PV of coupon payments = $40 x 14.877 (PV annuity factor, 3%, 20 periods) = $595.08
Loan amount = $1,148.76
Future value of the loan = $1,148.76 x (1 + 5%)¹⁰ = $1,871.21
You will receive 20 coupon payments of $40 each, which will be reinvested at 2% semiannual rate. You will also receive $1,000 corresponding to the face value of the bond.
Future value of the coupon payments = $40 x 24.297 (FV annuity factor, 2%, 20 periods)] = $971.88
Total money received at the end of the 10 year period = $971.88 + $1,000 = $1,971.88
Gain = $1,971.88 - $1,871.21 = $100.67 ≈ $101
Alvin's Transport has total credit sales for the year of $182,000 and estimates that 3% of its credit sales will be uncollectible. Record the end-of-period adjusting entry on December 31, in general journal form, for the estimated bad debt expense. Assume the following independent conditions existed prior to the adjustment:
a. Allowance for Doubtful Accounts has a credit balance of $570.
b. Allowance for Doubtful Accounts has a debit balance of $360
Answers
Answer:
S/n Account Title and Explanation Debit Credit
a. Bad Debt Expense $5,460
($182,000 sales x 3%)
Allowance for Doubtful Accounts $5,460
(To record bad debt expense)
b. Bad Debt Expense $5,460
($182,000 sales x 3%)
Allowance for Doubtful Accounts $5,460
(To record bad debt expense)
What is meta genetics
Answers
Metagenomics is the study of genetic material recovered directly from environmental samples. The broad field may also be referred to as environmental genomics, ecogenomics or community genomics.
Hope it helped!
Determine income tax expense under the current situation:Taxable income during the year: $220 millionChange in future taxable amounts during the year: $16 millionTax rate: 25%.
Answers
Answer: $51 million
Explanation:
Based on the values given in the question, the income tax expense would be calculated as:
Taxable Income = $220 million
Less : Deferred Income = $16 million
Form the above, we would then calculate the tax expense as:
= 25% × ($220 - $16)
= 25% × $204 million
= 0.25 × $204 million.
= $51 million