Amount to be credited = $2,020
Outstanding balance = $480
Explanation:
The payment terms state that
- 3% discount may be taken within 10 days of the invoice date (up to May 20); or
- 1% discount may be taken within 15 days of the invoice date (after May 20 but not later than May 25); or
- The net amount is due within 60 days of the invoice date if advantage is not taken of the cash discounts offered.
- The 3% cash discount is not applicable as the payment was made on May 22 which is after the end of the discount period. However, the 1% discount is allowed, since payment on May 22 is within the 15-day period for the 1% discount.
Amount to be credited
= 2000 / (1−0.01)
= 2000 / (0.99)
= $2,020
Outstanding balance
= 2500 - 2020
= $480
Answer:
$18,500
Explanation:
The computation of the balance of Service Revenue shown on the adjusted trial balance is shown below:
= Service revenue ending balance + accrued value
where,
Accrued value = $1,500 ÷ 3 = $500
And, the service revenue ending balance is $18,000
So, the Service revenue balance equal to
= $18,000 + $500
= $18,500
This is the answer but the same is not given in the options mentioned in the question.
Answer:
$28,317.88.
Explanation:
The annual payment, PMT can be determined using a financial calculator as follows :
PV = $300,000
N = 20
P/YR = 1
R = 7.00 %
FV = $0
PMT = ?
Using a financial calculator, the annual payment, PMT is $28,317.88.
Answer:
no option is correct
long term capital gains = ($24.50 - $22) x 500 = $1,250
dividend income = $0.32 x 500 = $160
total return = $1,410
Maybe your teacher is asking about long term capital gains only. If that is the case, then option A. $1,250 is correct
Explanation:
total return = ending value - initial value + dividends received = (500 x $24.50) - (500 x $22) + (500 x $0.32) = $12,250 - $11,000 + $160 = $1,410
holding period return = (ending value - initial value + dividends received) / initial value = $1,410 / $11,000 = 0.1282 = 12.82%
Answer:
Credit balance of $12,000
Explanation:
To calculate the balance of the allowance for doubtful accounts we need to multiply the total accounts receivable times the percentage of estimated bad debts:
$160,000 x 7.5% = $12,000
Since allowance for doubtful accounts is a contra asset account, when it increases it should be credited.
