Answer: d. Taking the difference between the unadjusted balance in the allowance account and the desired balance of the allowance account.
Explanation: Bad debt expense is an unfortunate cost of doing business with customers on credit and recognizing bad debts leads to an offsetting reduction to accounts receivable on the balance sheet.
The balance-sheet approach for estimating bad debts expresses uncollectible accounts as a percentage of accounts receivable. That is, it takes the difference between the current balance of allowance for doubtful accounts and the amount calculated.
Therefore, if a company uses the balance sheet approach to estimate bad debt expense, bad debt expense for a period can be determined by taking the difference between the unadjusted balance in the allowance account and the desired balance of the allowance account.
Answer:
A. Yes, the cost of taking the order is the lost after-tax cash flow of $163,383 from selling the machine.
Explanation:
This question is about opportunity costs. Opportunity costs are benefits lost or extra costs associate to choosing one activity or investment over another alternative.
If Jones decides to accept the special order, he will not be able to sell the machine, so he will lose the $163,383 that he could have earned by selling it (that is the opportunity cost of accepting the special order).
Answer:
A. $0 recognized gain/loss; $375,000 basis
Explanation:
Please see attachment.
Answer:
The answer is B. Disciplining, promoting, transferring, and demoting.
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Answer:
The project's expected rate of return is 8.3%
Explanation:
The following question would be solved using the CAPM (Capital Asset Pricing Module) formulae, which is calculated as follows:
Ra = Rrf + [Ba x (Rm - Rrf)}
Where:
Ra = Project's Expected rate of return
Rrf = Risk-free rate
Ba = Beta
Rm = Expected return of the market
Note: We have been provided with risk premium which is calculated by deducting Risk-free rate from Expected return of the market (Rm - Rrf = Risk premium).
Ra = 2.9% + [0.83 x 6.5%]
Ra = 2.9% + 5.4% (rounded off from 5.395%)
Ra = 8.3%