Answer and Explanation:
The Journal entry is shown below:-
Bad debts expense Dr, $2,000
To Accounts receivable-Hopkins $2,000
(Being write off is recorded)
Here we debited the bad debt expenses as it increased the expenses and we credited the accounts receivable as it reduced the assets so that the proper posting could be done
Explanation:
The journal entry is as follows
Notes receivable A/c Dr $11,100
To Sales A/c $11,100
(Being the sales is recorded)
Since the merchandise transaction is done through note receivable so we debited the note receivable account and the transaction is of sale type so the sales account is credited. Both the transactions are recorded at $11,100
Answer:
$20,900 times the present value of a 5-year, 11% ordinary annuity of 1’
Explanation:
For computing the required initial investment we considered the following information
Withdrawn amount = $20,900
Time period = 5 years
Rate of interest = 11%
in mathematically,
= Withdrawn amount × Present value of a 5-year, 11% ordinary annuity of 1’
By this formula we can get the required initial investment
<span>A. An auditor can accept the uncertainties in the sampling process since they have some idea in which financial statements errors are occurring. In this case their sample is not completely random.
B. The formula AR = IR Ă— CR Ă— DR is often used to describe audit risk. Here, AR is audit risk, IR is inherent risk, CR is control risk, and DR is detection risk. Inherent risk is the risk of a report containing errors due to the complex nature of how the audited business runs. Control risk is the risk that an error may occur but may not be detected by the business itself. Detection risk is the risk that the auditor may fail to find errors that are present in the business' financial reports.
C. An auditor may only sample, or inspect a fraction of a company's financial history. This is done for practical purposes, for there may not be enough time to inspect everything, or it may be too costly. If the auditor is issuing a test of controls, in which they are scrutinizing their target's internal procedures for detecting errors, then sampling may fail to see these errors.</span>
Answer:
Interest will be $855 x 10 years= $8,550
Explanation:
Interest
6÷100=0.06
0.06x14,250=$855
$855x10=$8,550.
How much to have paid back
At the end of 10years $8,550 would have been paid as interest
Total sum will be $14,250+$8,550=$22,800 to be paid back.
