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2 years ago

The account allowance for uncollectible accounts is classified as

Business

1 answer:

Anika [276]2 years ago

5 0

Answer: contra asset

Explanation:

An allowance for doubtful accounts is considered a “contra asset,” because it reduces the amount of an asset, in this case the accounts receivable.

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Which one of the following groups of accounts only have debit balances

scoray [572]

Answer: b. Sales Returns, Wages, Machinery, Discount Allowed

Explanation:

Sales returns reduce the sales made. Sales are put on the credit side so transactions that will reduce sales such as sales returns would have to go on the debit side.

Wages are an expense and expenses are debited to show they are increasing so they have a debit balance.

Machinery is an asset and assets have debit balances.

Discount allowed reduces the sales balance and as mentioned above, transactions that reduce sales go on the debit side so this has a debit balance as well.

4 0

3 years ago

The models for responding to either liked or disliked changes both end in

Nookie1986 [14]

A.
constructive direction.

6 0

3 years ago

Ms. Towne is buying a home for $250,000 and is putting down 20% cash on the purchase. She is financing the rest with a 30-yr, fi

kipiarov [429]

Answer:

$180

Explanation:

the monthly payment = principal / annuity factor

principal = $250,000 x 80% = $200,000
PV annuity factor, 360 periods, 0.38542%= 194.4995527

monthly payment = $200,000 / 194.4995527 = $1,028.28

in total, you will pay $1,028.28 x 360 = $370,180.80, so total interests = $370,180.80 - $200,000 = $170,180.80

the biweekly payment = principal / annuity factor

principal = $250,000 x 80% = $200,000
PV annuity factor, 780 periods, 0.178%= 421.62071

monthly payment = $200,000 / 421.62071 = $474.36

in total, you will pay $474.36 x 780 = $370,000.80, so total interests = $370,000.80 - $200,000 = $170,000.80

During the 30 year period, you will be able to save $170,180.80 - $170,000.80 = $180 in interests

3 0

3 years ago

Wells Fargo & Company, headquartered in San Francisco, is one of the nation’s largest financial institutions. Suppose it rep

andreev551 [17]

Answer:

EQUITY AND LIABILITIES

EQUITY

Retained earnings $ 41,563

Preferred stock $ 8,485

Common stock - Issued $ 8,743

Treasury stock $ 2,450

Share Premium $ 52,878

Total Equity $114,119

Explanation:

The the stockholders’ equity section of the balance sheet shows the amount of capital invested by the shareholders in the business as well as the reserves that have been allocated to them.

8 0

3 years ago

Change Corporation expects an EBIT of $57,000 every year forever. The company currently has no debt, and its cost of equity is 1

Deffense [45]

Answer:

a) $337,615.38

b-1) $360,910.85

b-2) $415,266.92

c-1) $362,637.36

c-2) $438,461.54

Explanation:

a) To find the current value of the company, we have:

$\frac{57,000*(1 - 0.23)}{0.13}$

= $\frac{57,000*0.77}{0.13}$

= $337,615.38

b-1) If the company takes on debt equal to 30 percent of its unlevered value.

337,615.38 + (0.23 * 337,615.38 * 0.30)

= $360,910.85

b-2) When the company can borrow at 10 percent. The value of the firm if the company takes on debt equal to 100 percent of its unlevered value will be:

337,615.38 + (0.23 * 337,615.38 * 1)

= $415,266.92

c-1) The value of the firm if the company takes on debt equal to 30 percent of its levered value:

$\frac{337,615.38} {(1 - 0.23) * 0.30}$

= $362,637.36

c-2) The value of the firm if the company takes on debt equal to 100 percent of its levered value:

$\frac{337,615.38} {(1 - 0.23) * 0.1}$

= $438,461.54

5 0

3 years ago