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2 years ago

Using the allowance method, is bad debt expense recognized in

1 answer:

3 0

Using the allowance method, is bad debt expense recognized in the period in which sales related to the uncollectible account are made.

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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Suppose that lenders want to receive a real rate of interest of 5 percent and that they expect inflation to remain steady at 2 p

Helga [31]

Answer:

Explanation:

nominal interest rate = real interest rate + expected inflation rate

nominal interest rate = 5% + 2% = 7%

Usually the nominal interest rate has four major components:

real interest rate: the net interest rate received by a lender or an investor
inflation rate: the general rise in the prices of goods and services, as inflation increases, the purchasing power of a currency decreases
liquidity risk premium: usually collateralized loans include a liquidity risk premium since not all assets can be easily converted to cash.
credit risk: possibility of the borrower defaulting the loan

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3 years ago

In the Keynesian model, suppose the Fed wants to keep output unchanged. If the IS curve shifts to the left, and the Fed acts to

sergey [27]

Answer:

Have an expansionary monetary policy (shift LM curve to the right)

Explanation:

See the graph attached. If the IS curve shifts to the left, there will be a new IS curve- The IS'. If the Fed wants to keep the output level (Y) unchanged, then it has to shift the LM curve to the right, to LM', so that the Y point (output level) in which the IS matches the LM stays the same (Y*).

Shifting the LM curve to the right, it means to have an expansionary monetary policy, which means to expand the quantity of money in the economy. This is done, for example, by decreasing the discount rate or reducing the reserve ratio.

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4 years ago

In Python programming language, what is a function statement?

jekas [21]

Answer:

A function that will be executed

Explanation:

8 0

3 years ago

The Plainfield Company has a long-term debt ratio (i.e., the ratio of long-term debt to long-term debt plus equity) of .52 and a

SCORPION-xisa [38]

Answer:

$13286.84

Explanation:

Given that

Current ratio = 1.41

Current liabilities =2465

Firstly, we calculate for current assets.

Recall that,

Current ratio = current assets / current liabilities

That is,

1.41 = current assets / $2,465

Therefore,

Current assets = $2,465 × 1.41

Current assets = $3475.65

Following that

We find Net Income

Again, recall that

Profit margin = net income / Sales

Where

Profit margin = 0.09 or 9%

Sales = 10,675

0.09 = net income / $10,675

Net income = 0.09 × $10,675

Net income = 960.75

Next step is to find for return on equity

Recall that

ROE = net income / total equity

Where,

ROE was given as 0.14

We got net income as 960.75

Hence,

0.14 = 960.75 / total equity

Total equity = 960.75 / 0.14

Total equity = $6,862.5

Long term debt ratio = long term debt / (long term debt + total equity)

1 / 0.52 = 1 + long term debt / (total equity / long term debt)

0.923 = (total equity / long term debt)

$6,862.5 / long term debt = 0.923

long term debt = 7,434.99

Recall that

Total debt = Current liabilities + long term debt

Thus,

Total debt = $2,465 + $7,434.99

Total debt = 9,899.99

Total asset is given as: total debt + total equity,

Thus,

Total assets = $9,899.99 + $6,862.5

Total assets = 16,762.494

Finally,

Recall that,

Net fixed assets = total assets - current assets

Therefore,

Net fixed assets = 16,762.494 - $3475.65

Net fixed assets = $13286.84

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3 years ago

Marketers of products such as valentines day chocolates frequently use a ____________ advertising scheduling tactic.

Gennadij [26K]

"Seasonal" advertising scheduling tactic

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3 years ago

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