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Strike441 [17]
2 years ago
5

At year-end (December 31), Chan Company estimates its bad debts as 0.80% of its annual credit sales of $831,000.

Business
1 answer:
pychu [463]2 years ago
7 0

Answer:At year-end (December 31), Chan Company estimates its bad debts as 0.80% of its annual credit sales of $831,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $416 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Prepare the journal entries for these transactions. View transaction list 1 Record the estimated bad debts expense. 2 Wrote off P. Park's account as uncollectible. 3 Reinstated Park's previously written off account 4 Record the cash received on account. Credit Note :· journal entry has been entered Record entry Clear entry View general journal

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You are a professional financial analyst that is employed to help evaluate possible merger and acquisition candidates. You have
kipiarov [429]

Answer:

Explanation:

Below are some of the financial ratios he should consider:

a) Financial leverage ratios: This is used to measure the company earnings to service debt payments.

b) Return on investment: This is the ratio that is used to evaluate the profitability of the firm and the profit that is available to the stakeholders after all payments have been made.

c) Price to Earnings Ratio: This is an indicator of the price of the company's stock concerning the earnings per share. It is used to analyze if the stock price is over-priced or under-priced.

4 0
3 years ago
If demand increased by 100 units at each price level, and the government set a price ceiling of $40, then there will be
mel-nik [20]

Answer:

no surplus or shortage

Explanation:

Equilibrium price is the price at which quantity demand equal quantity supplied. Above equilibrium price there is a surplus - quantity supplied exceeds quantity demanded.

Below equilibrium price there is a shortage - quantity demanded exceeds quantity supplied

If demamd increases by 100, new equilibrium is 40

Thus, ceiling price equal equilibrium

Price ceiling is when the government or an agency of the government sets the maximum price for a product. It is binding when it is set below equilibrium price.

Effects of a binding price ceiling

It leads to shortages

it leads to the development of black markets

it prevents producers from raising price beyond a certain price

It lowers the price consumers pay for a product. This increases consumer surplus

4 0
3 years ago
Bellucci Corporation has provided the following information: Cost per UnitCost per Period Direct materials$6.70 Direct labor$3.5
Nikolay [14]

Answer:

The incremental manufacturing cost that the company will incur if it increases production from 10,500 to 10,501 units is closest to $11.40

Explanation:

It is important to note that the question requires The incremental manufacturing cost that the company will incur if it increases production from 10,500 to 10,501 units

From Production of 10500 units to 10501 units, there is an increment of 1 unit.

<u>Lets find the incremental cost of 1 unit.</u>

1.To do this we only consider variable manufacturing costs only.

2.Since increase is within the relevant range, the fixed manufacturing overheads do not change.

3.Also Ignore all non- manufacturing overhead as they do not form part of manufacturing costs.

                                                         Extra 1 Unit

Direct materials                                    $6.70

Direct labor                                           $3.50

Variable manufacturing overhead     $1.20

Total Cost                                             $11.40

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eimsori [14]
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