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2 years ago

How can a company limit bad debts?

Business

2 answers:

xxTIMURxx [149]2 years ago

8 0

$\huge\pink{Q}\pink{u}\pink{e}\pink{s}\pink{t}\pink{i}\pink{o}\pink{n}\pink{:}$

How can a company limit bad debts?

<h2>• Answer •</h2>

Filter your customers. Not all customers are good for your business.
Require up-front payments.
Set reasonable credit limits.
Provide clear payment terms and penalties.
lmprove your accounting.Implement strict collection procedures.
Use cloud-based software for debt collection.

elena-s [515]2 years ago

3 0

Answer:

The best way of controlling bad debts is not to provide credits to everyone. As more amount of credit will be given to the people, the risk of bad debts will increase. The funds left should be used for the development of the company.

Explanation:

hope it helps :)

pls mark brainleist :P

Tori

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Darwin Inc. sells a particular textbook for $29. Variable expenses are $21 per book. At the current volume of 44,000 books sold

Dvinal [7]

Answer:

The answer is A

Explanation:

To start with;

Contribution margin per unit = selling price($29) - variable cost($21)

$29 - $21

= $8 per book...

So break even sales =fixed cost(expense) / contribution margin.

Break even sales is 44,000 units and contribution margin is $8.

Therefore, fixed cost or expenses=

Break even sales x contribution margin

44,000 x $8

=$352,000

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3 years ago

Theresa leased a one-bedroom apartment from Landlady for one year at $500 per month. After three months, she vacated the apartme

LenaWriter [7]

Answer:

She owes 4500 because she leased the apartment for 1 year and her yearly total would be 6,000 but since she left after three months the amount she paid was 1,500 and 6,000 - 1,500 is 4,500 that is how much she owes.

Explanation:

I hope this helped have a great day!

5 0

3 years ago

A company purchases 12,000 pounds of materials. The materials price variance is $6,000 favorable. What is the difference between

Sonbull [250]

Answer:

The difference between the standard and actual price paid for the materials is $0.5.

Explanation:

Given Data:

Actual Quantity = 12,000 Pounds

Material Price Variance = $6,000

We know the formula for Material Price Variance is:

Materials Price Variance = (Actual quantity × Actual price) – (Actual quantity × Standard price) ----- (1)

For convenience, suppose:

Actual Price = AP & Standard Price = SP

Rearranging the equation (1) and substituting the Actual and standard price with AP and SP we get,

Material Price Variance = (Actual Quantity x AP) – (Actual Quantity x SP)

Taking Actual Quantity as common on the left hand side of equation we get:

Material Price Variance= Actual Quantity (AP – SP) ---- (2)

Putting the values of Material Variance and Actual Quantity in equation (2), we get:

$6000=12,000 (AP – SP)

Rearranging the equation we get,

AP – SP = $6000/12,000

Finally, AP – SP = $0.5

Conclusion:

The difference between the standard and actual price paid for the materials is $0.5.

7 0

3 years ago

A produce distributor uses 773 packing crates a month, which it purchases at a cost of $11 each. The manager has assigned an ann

alekssr [168]

$\sqrt\frac{2*773*28}{33}$ Answer:

Explanation:

Using the EOQ Formula = EOQ $\sqrt\frac{2*D*O}{H}$

D = Demand = 773

O = Ordering Cost =28

H = holding Cost = 11*33% =3.63

So we have :

EOQ= $\sqrt\frac{2*D*O}{H}$

EOQ= $\sqrt\frac{2*773*28}{3.63}$

EOQ= $\sqrt\frac{43288\\}{3.63}$

EOQ= $\sqrt{11925.06887}$

EOQ= 109.20196

Previous per unit order cost = 28/773 =0.03622

No of Orders = D/o

No of Orders = 773/109.20196 =7.0786

Cost per order =109.20196*0.03622 =3.9555

Total order cost= 7.0786*3.9555=27.9998

At EOQ holding Cost is equal to Order Cost

New Order cost =27.9998

Holding Cost = 27.9998

New cost As per EOQ = 56

Previous (33+28) = 61

Net Saving = 5

6 0

3 years ago

The most frequent reason that some corporations send their manufacturing operations outside of the united states is to find high

marishachu [46]

To find highly skilled workers who are specialized

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3 years ago