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Marianna [84]
2 years ago
15

Prepare journal entries for the following transaction listed.

Business
1 answer:
Naya [18.7K]2 years ago
3 0

During the period, bad debts are written off in the amount of $14,500. Journal entry of the given transaction will be as follows.

Bad debt account will be debited and debtors account will be credited by $14500.

One of the most typical types of bad debt is credit card debt. Lenders issue credit cards, which let you make purchases on credit. These credit cards frequently have exorbitant interest rates that can soon become out of control.

Bad debt costs are typically listed on the income statement as a sales and general administrative expenditure. Accounts receivable on the balance sheet are reduced when bad debts are recognized, but firms still have the right to collect money if the situation changes.

Learn more about bad debts here

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Smiling Elephant, Inc., has an issue of preferred stock outstanding that pays a $5.60 dividend every year, in perpetuity. If thi
faltersainse [42]

Answer:

Required rate of return is 6.97%

Explanation:

The required rate of return can be ascertained from the price formula below when the subject of the formula is changed to rate of return instead of stock price:

Stock price =dividend/required rate of return

stock price is $80.40

required rate of return is unknown

the dividend on the preferred stock is $5.60

required rate of return=dividend/stock price

required rate of return =$5.60/$80.40=6.97%

The required rate of return based on the stock price and dividend information provided is 6.97%

4 0
4 years ago
The law of comparative advantage suggests thata.both countries would gain if Botswana traded wheat grown in Botswana for Qatar's
Marina86 [1]

Answer:

A)both countries would gain if Botswana traded wheat grown in Botswana for Qatar's wine.

Explanation:

The law of comparative advantage can be regarded as one set up by David Ricardo in the year 1817, which gives reason that is behind international trade that exist between different countries , even the business, workers as well as factories of a country have efficiency at production of every single good compare to other country.

Comparative advantage shows the ability of an economy have in production of a particular good/ service having lower opportunity cost compare to its trading partners.

6 0
3 years ago
What is TRUE about non-depository financial institutions?
yKpoI14uk [10]

Non-Depository financial institutions are those institutions that provide various financial assistance. These institutions serves as an intermediaries between borrowers and savers. ... The non-depository financial institutions include commercial banks, credit unions, and saving banks. Therefore, option D is correct

7 0
3 years ago
Explain how (if at all) each of the following events affects the location of a country’s production possibilities curve
fgiga [73]

Answer:

An increase in the quality of education would increase human capital. This would lead to an outward shift of the production possibilities curve

b. If the number of unemployed workers increases, there would be no change in the labour force. the production possibilities curve would not be affected

c. The new technology is technological advancement. Technological advancement leads to an outward shift of production possibilities curve

d. The earthquake would destroy capital stock and resources needed in the production process. As a result, production possibilities curve would shfit inward

Explanation:

The Production possibilities frontiers is a curve that shows the various combination of two goods a company can produce when all its resources are fully utilised.

As more quantities of a product is produced, the fewer resources it has available to produce another good. As a result, less of the other product would be produced. So, the opportunity cost of producing a good increase as more and more of that good is produced.

3 0
3 years ago
What is the main thing you can leam from an income statement?​
LUCKY_DIMON [66]

Explanation: Research analysts use the income statement to compare year-on-year and quarter-on-quarter performance. One can infer whether a company's efforts in reducing the cost of sales helped it improve profits over time, or whether the management managed to keep a tab on operating expenses without compromising on profitability.

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