Answer:
The adjustment to record bad debts for the period will be:
Debit Bad debt expense ($20,000 - $3,000) $17,000
Credit Allowance for doubtful accounts $17,000
<em>(Bad debt expense required)</em>
Explanation:
Bicylce Company adopts the aging of accounts receivable method. The aging of accounts receivable is a criterion for apportioning the balance in the accounts receivable into different buckets (aging), for example: Not due, 1 - 30 days, 30 - 60 days, over 60 days, based on historical information and assigning a credit loss percentage to each bucket.
Since the Allowance for Doubtful Accounts has a $3,000 credit, to calculate the required bad debt expense, we need to back out this amount from the amount that is deemed uncollectible, that is $20,000 - $3,000 = $17,000.
Answer:
The answer is: C) There will be an increase in wealth, creating a shift to the right in the demand curve for bonds in France. France can therefore expect permanent lower interest rates in the future.
Explanation:
When the residents of a nation decide to permanently increase their savings, that affects the economy in several ways. At first, it will lower the total demand for products and services (to be able to save money you must spend less) and increase the quantity demanded for bonds. This increase will lower the price (in this case interest rate) of bonds.
When the interest rates of bonds is lower, it means the cost of borrowing money for the general population will also lower. The interest rate commercial banks charge their clients always follow the interest rate of bonds. That will lead to greater investment and spending in the economy, and future economic growth.
Answer:
In the modern situation of Rockville Enterprises, it is producing wood functioning tools and situated in Evansville, following are the description whether Rockville Enterprise is a defensive commotion in non-ordinary conditions or not.
A) - Yes. All form of marketing is deliberated as secure action. As these marketing is revealed in all country.
B) - No. Inspection credit value of consumers is not secure action underneath the public regulation 86-272
C) - Yes. Sustaining a stand at a business exhibition in Arizona for 14 days is measured as secure action under the public regulation 86-272
D) - Yes. Inspection record is secure action underneath the public regulation 86-272
E) - No. Organizing administration meeting is not a secure action. Conversely. Organizing individual meeting is measured as secure action.
Answer:
Amount investment in Sock Y = - $126,000
Beta of portfolio = 1.636
Explanation:
Data provided in the question:
Total amount to be invested = $140,000
Stock X Y
Expected return 14% 10%
Beta 1.42 1.18
Expected return of portfolio = 17.6%
Now,
let the weight invested n stock X be W
therefore,
Weight of Stock Y = 1 - W
thus,
( W × 14% ) + (1 - w) × 10% = 17.6
%
or
14W + 10% - 10W = 17.6%
or
4W = 7.6
or
W = 1.9
Therefore,
weight of Y = 1 - 1.9 = -0.9
Thus,
Amount investment in Sock Y = Total amount to be invested × Weight
= 140,000 × ( - 0.9 )
= - $126,000 i.e short Y
Beta of portfolio = ∑ (Beta × Weight)
= [ 1.42 × 1.9 ] + [ 1.18 × (-0.9) ]
= 2.698 - 1.062
= 1.636
