Answer:
$2,400
Explanation:
The computation of the depreciation expense under the activity-based depreciation method is shown below:
= (Original cost - residual value) ÷ (estimated production units)
= ($12,000 - $4,000) ÷ (20,000 units)
= ($8,000) ÷ (20,000 units)
= $0.4 per unit
Now for the first year, it would be
= Production units in first year × depreciation per unit
= 6,000 units × $0.4
= $2,400
Answer:
The entries is as followed:
February 2 2018
Dr Account Receivable 500
Cr Allowance for doubtful account 500
(to reverse receivable written-off)
Dr Cash 500
Cr Account Receivable 500
(to record cash collection from receivable)
Explanation:
As the company apply the allowance method, we apply the following steps to record collection of receivable which has already written-off:
+ First, we reverse the written-off accounting entry which had been made before with the amount of $500 ( Written-off entry: Dr Allowance for doubtful debt - Cr Account Receivable; Reverse entry as shown in the answer part);
+ Second, we record the collection of receivable by Dr Cash (increase) and Cr account receivable (decrease).
Answer:
TWO POSSIBLE REASONS:
-she has a bad credit history
-she doesn't have a job
Explanation:
The bank should give her a credit card if:
-she is 18 years old
-has a good credit history
Also,
- having an account with the bank is not necessary and will not hinder the approval process of getting a credit card
This is a simple algebra equation:
Net Income = Earnings - ITDA (interest/taxes/depreciation & amortization)
so fill in what we know
7,5000,000 Earnings
2,100,000 Net Income
2,000,000 interest
(7,5000,000) * 30% Taxes
? for DA
so:
2,1000,000= 7,500,000 - 2,100,000-(7,500,000*.30) - X
You would then solve for X
2,100,000 = 3,150,000 - X
X= 1,050,000 Depreciation and Amortization