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2 years ago

Differentiate between bad debt and doubtful debt

Business

1 answer:

umka2103 [35]2 years ago

3 0

answer and explanation :

A bad debt is a specifically-identified account receivable that will not be paid and so should be written off at once, while a doubtful debt is one that may become a bad debt in the future and which it may be necessary to create an allowance for doubtful accounts.

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Younie Corporation has two divisions: the South Division and the West Division. The corporation's net operating income is $90,10

lapo4ka [179]

Answer:

b. $127,200

Explanation:

Both sales and variable cost are dependent on the number of units sold.

The sales less the variable cost gives the contribution margin. The contribution margin less the fixed cost gives the net operating income.

As such, the total fixed cost of the corporation not traceable to the individual divisions

= $168,500 + $48,800 - $90,100

= $127,200

3 0

3 years ago

Compute net income for 2019 by comparing total equity amounts for these two years and using the following information: During 20

satela [25.4K]

Answer:

net income during 2019 = $109,045

Explanation:

total stockholder equity 2018 = assets - liabilities = $293,500 - $79,245 = $214,255

total stockholder equity 2019 = assets - liabilities = $497,512 - $177,212 = $320,300

change in equity from 2018 to 2019 = $106,045

$33,000 can be explained by additional capital invested, and the remaining $73,045 corresponds to change in retained earnings

change in retained earnings = net income - dividends distributed

$73,045 = net income - $36,000

net income = $109,045

7 0

3 years ago

Beginning Work in Process Inventory was 10,000 units that were 20% complete and 40,000 units started, with ending Work in Proces

lesya692 [45]

Answer:

Material EUP = 5000

Conversion Costs EUP = 51,200

Explanation:

Under weighted average method

Beginning Work in Process Inventory 10,000

Units Started = 40,000

Units to account for 50,000

In the Work In Process for Conversion Costs

Beginning Work In Process (10,000*20 %) = 2000 were complete

Work done on beginning inventory = 10,000- 2,000= 8,000

Units Started = 40,000

Add Ending Inventory (8000*40%) 3200

Units to account for = 51,200

5 0

3 years ago

Suppose gold (G) and silver (S) are substitutes for each other because both serve as hedges against inflation. Suppose also th

maksim [4K]

Answer:

a) Gold = $1,380; Silver = $1,020

b) Gold = $1,300; Silver = $980

Explanation:

a) At first, with Qg = 60 and Qs = 270, the equilibrium prices for gold and silver are found by solving the following linear system:

$P_g = 930-60 +0.50 P_s\\P_s = 600 - 270 + 0.50P_g\\\\-P_s=1740 -2P_g\\P_s = 330+ 0.50P_g\\P_g = 1,380\\P_s = 1,020$

Equilibrium price of gold is $1,380 and the price of silver is $1,020.

b) If the supply of gold increases to 120, since the goods are substitutes, there will be an increase in overall supply and the equilibrium price of gold and silver will decrease as follows:

$P_g = 930-120 +0.50 P_s\\P_s = 600 - 270 + 0.50P_g\\\\-P_s=1620 -2P_g\\P_s = 330+ 0.50P_g\\P_g = 1,300\\P_s = 980$

Equilibrium price of gold is $1,300 and the price of silver is $980.

8 0

3 years ago

Petrenko Corporation has outstanding 2,000 $1,000 bonds, each convertible into 50 shares of $10 par value common stock. The bond

cricket20 [7]

Explanation:

The Journal entry is given below :-

Bonds payable $2,000,000

To common stock $1,000,000

To Discount on common stock $30,000

To Paid in capital $970,000

The calculation of bonds payable, common stock is below:-

For bonds payable

= 2,000 × $1,000

= $2,000,000

For common stock

= 2,000 × 50 × $10

= $1,000,000

For paid in capital

= $2,000,000 - ($1,000,000 - $30,000)

= $970,000

4 0

3 years ago

Differentiate between bad debt and doubtful debt​

Differentiate between bad debt and doubtful debt