Answer:
$46,000
Explanation:
Note: The balance sheet is shown in the attachment. Kindly find it below:
The computation of the cost of goods sold expense is shown below:
Cost of goods sold = Opening inventory + Purchase - ending inventory
where,
Opening inventory = $22,000
Purchase = $42,000
And, the ending inventory is $18,000
So, the cost of goods sold is
= $22,000 + $42,000 - $18,000
= $46,000
Basically we applied the above formula to find out the cost of goods sold expense in 2014
Answer:
Computation of contribution to retirement fund
Annual payment that the investor wants to receive after retirement = 13000
Number of years after retirement = 15
Interest rate = 0.11
Value of the fund at 12th year (Use Present Value Formula) = -93,481.30
Years remaining to retirement = 10
Interest rate = 0.09
Annual contribution upto retirement (Use PMT Formula) = -14,566.27
Benefits: you can use some money to pay for stuff you don't have. You don't have to worry about it right away.
Risks: lose track of how much you are spending compared to what you have. You can also get into serious debt without realizing it affecting your spending on things in the future.
The answer is: C.accrual basis of accounting
Accrual basis of accounting would record a certain transaction as soon as it happen, even though an exchange of payment has not been made. Compared to any other basis, accrued basis tend to the most likely to represent the actual financial condition of a company. This is why this basis is used as the current industry standard.
Answer:
$20,400
Explanation:
The computation of the bad debt expense for 2020 is shown below:
Ending balance of Allowance for Uncollectible Accounts = Beginning balance of Allowance for Uncollectible Accounts + bad debts -write off amount
where,
Ending balance of allowance for uncollected accounts is
= $800,000 × 5%
= $40,000
Beginning balance of Allowance for Uncollectible Accounts is $40,000
And, the written off amount is
= $28,800 - $8,400
= $20,400
So, the bad debt expense is
= $40,000 - $40,000 + $20,400
= $20,400
We simply applied the above formula so that the bad debt could arrive
