Bad Debt Expense is a cost of extending credit to customers is based on actual events and does not require estimation is an estimate.
- When a receivable is no longer recoverable as a result of a customer's inability to pay an outstanding debt owing to bankruptcy or other financial issues, a bad debt expense is recorded.
- Big Store stops paying its debts and fails to reimburse Company XYZ for goods valued at $100,000. Company labels the $100,000 as a bad debt because it has little faith that Big Store will ever make good on its obligations.
- When a customer's repayment of previously granted credit is thought to be uncollectible and is therefore recorded as a charge off, a business incurs a bad debt expense.
- Bad debt charges are categorized as operating costs and are typically listed under selling, general, and administrative costs on your company's income statement.
Thus this is the answer.
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Answer: The value of the bond will decrease
Explanation:
The Interest rate has a negative inverse relationship with the value of a bond
. When the interest rate increases the value of a bond decreases and when interest rate decreases the bond value increases. Bonds with low coupon rates tend to be more sensitive to interest rate changes this is known has coupon effect.
Bonds with long time frame (long term bonds), they also tend to be are more sensitive to changes in the interest rate this is known has the maturity effect. Therefore a change in the interest rate will cause a huge change in the value of a Bond with low coupon rate and long time period.
The Bond is a 20 year Bonds which qualifies it to be a long term bond and the coupon Rate is 7%, with these facts and knowing that long term bonds are more sensitive to interest rate changes we can conclude that the sudden increase of the interest rate to 15% will cause a huge decrease in the value of the bond
Implies that, for most people, the marginal benefit of reading a second newspaper is less than the marginal cost is the fact.
<h3>What is newspaper?</h3>
Newspaper is the paper that consist of the news in it, it publishes on the daily basis with the different news, there are different kind of news present in the paper like local news, international news, celebrities news, headline, exclusive news and others.
Thus, option C is correct.
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Angela wants to calculate her take-home pay. She earns $1,377 monthly.
She pays federal tax of $200
state tax of $41.31,
and 7.65% in FICA tax.
Let's solve for Angela's monthly net pay.
=> 1 377 dollars * 0.0765 = 105.34 dollars is the FICA tax
=> 1 377 - (105.34 + 200 + 41.31)
=> 1377 - 346.65 = 1030.35 dollars is her monthly net pay,
