Answer:
4.2 years
Explanation:
Here is the complete question
Project A requires a $ 385,000 initial investment for new machinery with a five year life and a salvage value of $44,000. The company uses straight - line depreciation . Project A is expected to yield annual net income of $ 23,100 per year for the next five years.
Required:
Compute Project A's payback period.
Payback = amount invested / cash flow
cash flow = net income + depreciation
depreciation = (cost of asset - salvage value) / useful life
(385,000 - 44,000) / 5 = 68,200
Cash flow = 68,200 + $ 23,100 = 91300
$ 385,000 / 91300 =4.2
Answer: <u><em>The adjusting entry at the end of the year will include a credit to Allowance for Doubtful Accounts in the amount of: $750</em></u>
Given:
Accounts receivable = $640
Allowance for Doubtful Accounts = $110
<em><u></u></em>
<em><u>Therefore, the correct option is (c).</u></em>
The best answer is D. The sector that will have a very limited influence in a pure market economy is the government. A pure market economy is an economic system that solely relies on the markets to distribute the resources. A theoretical pure market economy has no involvement of the government, only the markets decides on everything.
Answer: Closing entries: <u>" must be journalized and posted ".</u>
Explanation: Closing entries are those registrations that are ALWAYS made at the end of an accounting period because it cancels the balance of all temporary accounts to transfer them to permanent accounts.
Temporary accounts are profit and loss accounts, so the result of the year is determined in this way.