Answer: The correct answers are "A. Accept" and "$ 0.01".
Explanation: Given that we talk about optimal strategy when maximizing the expected profit by the player:
In the first case It is convenient to accept the proposal and keep $ 0.12, instead of rejecting it and running out of nothing.
And in the second case it is convenient to give the classmate as little as possible so that he accepts and we have a greater profit.
Answer: both sides of the accounting equation must be affected when recording a transaction using the double-entry system
Explanation:
The double entry principle states that for every financial transaction that takes place, there will be an opposite and equal effects in two different accounts at least. It simply implies that there for every transactions that happens, there are two entries which are the credit entry and the debit entry.
In a double entry principle, the addition of all the debits to the accounts must be thesame as the addition of all credits.
Option A which states that both sides of the accounting equation must be affected when recording a transaction using the double-entry system isn't correct. Both side of the accounting equation aren't affected.
Answer: $5,440
Explanation:
When using the percent of sales method to determine bad debts, the company estimates a percentage that it believes will results in uncollectible debt and then applies it to the sales/revenue figure. The figure that is calculated is then debited along with the debit balance on the Allowance for doubtful accounts to the Bad debts account for the year and credited to the Allowance for doubtful accounts.
This company estimates that they will have 0.6% of credit sales uncollectible.
There are also $790,000 in sales of which all are on credit.
The Uncollectible estimate is therefore,
= 790,000 * 0.6%
= $4,740
This figure is then added to the debit amount on the Allowance for Uncollectible Accounts.
= 4,470 + 700
= $5,440
Note; A debit balance on the Allowance for doubtful debt account signifies that the bad debts were higher than anticipated the last time. This is why the figure is added to the current bad debts expense.
Answer:
$8,495,833
Explanation:
<u>Calculation of weighted-average accumulated expenditures</u>
Date Payments Funds used Annualized Amount
Mar 1 $6450000 10/12 $6450000*10/12 $5,375,000
Jun 1 $5350000 7/12 $5350000*7/12 $3,120,833
Dec 31 $8250000 0/12 $$8250000*0/12 <u>$0 </u>
Weighted Average Expenditures <u>$8,495,833</u>
