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azamat
3 years ago
14

Blain Company has $10,000 of accounts receivable that are current, $5,000 that are between 0 and 30 days past due, $3,000 that a

re between 30 and 60 days past due, and $800 that are more than 60 days past due. Bain estimates that 2% of the receivables that are current will be uncollectible, 5% of those between 0 and 30 days past due will be uncollectible, 10% of those between 30 and 60 days past due will be uncollectible, and 50% of those more than 60 days past due will be uncollectible. Just prior to recognizing uncollectible accounts expense, Blain's allowance for doubtful accounts account has a $100 positive balance. Assuming Blain uses the aging method to estimate uncollectible accounts expense, the amount of uncollectible expense will be ________
a. $1,300.
b. $1150
c. $900.
d. $1050.
Business
1 answer:
True [87]3 years ago
8 0

Answer:

d. $1050.

Explanation:

We multiply each account balance by the expected uncollectible amount and then addd them to get the expected total for doutful accounts

\left[\begin{array}{cccc}Date&Amount&Expected&uncollectible\\$not due&10000&0.02&200\\$up to 30&5000&0.05&250\\$up to 60&3000&0.1&300\\$more than 61&800&0.5&400\\&&Total&1150\\\end{array}\right]

Balance of the allowance account:  100

The expense will be the adjustment made on the allowance to get the expected balance of 1,150

1,150 - 100 = 1,050

we increase the allowance bu 1,050 to get our expected uncollectible fro maccounts receivable agaisnt the bad debt expense ofthe period.

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Loretta is a member of a small research team that is working on developing a vaccine for swine flu. Once a week team members mee
Ede4ka [16]

Answer: information-sharing

Explanation: The meeting involves sharing of most recent findings so it illustrates the information-sharing function of meetings. A meeting is describes as an assembly or gathering of people for a purpose. The information-sharing function of meeting describes the exchange of information between attendees about a specific issue and/or information and updates. Since the purpose of this type of meeting is mostly educational or presentational, they have a likelihood of becoming boring and too filled with information. In these instances efforts are made to ensure that the attendees are engaged by providing questions and feedback channels among others.

8 0
3 years ago
Activity-based costing for a service business
shtirl [24]

Answer:

a. $56

b. $95

Explanation:

The computation is shown below:

a, The total monthly activity-based cost for Corner Cleaners Inc is

= $3.50 × 12 + $0.12 × 100 + $0.10 × 20

= $42 + $12 + $2

= $56

b  the total activity-based cost for Campbell’s visit i

= $8 × 1 + $25 × 3 + $4 × $3

= $8 + $75 + $12

= $95

Hence, the same should be considered and relevant

3 0
2 years ago
Relatively few consumers like to go to the dentist. Dental insurance plans that pay for regular checkups increase the __________
Hatshy [7]

This is perceived value, making the check ups free increases the value.

5 0
3 years ago
Paney Company makes and sells calendars. The information on the cost per unit is as follows: Direct materials $1.50 Direct labor
Vsevolod [243]

Answer:

Break-even point (dollars)= $80,000

Explanation:

Giving the following information:

Variable costs:

Direct materials $1.50

Direct labor 1.20

Variable overhead 0.90

Variable marketing expense 0.40

Total variable costs= 4

Fixed costs:

The fixed marketing expense totaled $13,000

The fixed administrative expense totaled $35,000.

Total fixed costs= $48,000

The price per calendar is $10.

To calculate the break-even point in dollars, we need to use the following formula:

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 48,000/ [(10 - 4)/10]

Break-even point (dollars)= 48,000/0.6

Break-even point (dollars)= $80,000

3 0
3 years ago
During 2020, Karen Building Company constructed various assets at a total cost of $12,600,000. The weighted average accumulated
Ivan

Answer:

a. $842,250

b. $842,250

Explanation:

The computation is shown below:

a. For avoidable interest

<u>Weighted average               Interest rate applied  avoidable interest</u>

<u>accumulated expenditures </u>

$5,205,000                               10%                           $520,500

$2,925,000                                11%                            $321,750

Total                                                                             $842,250

($8,130,000 - $5,205,000)

Working note for interest rate applied

<u>Particulars                   Principal                Interest</u>

12% ten year bond    $6,047,000            $725,640    

9% 3 year bond         $3,023,500            $272,115

total                            $9,070,500            $997,755

Now the interest rate is

= $997,755 ÷ $9,070,500

= 11%

2. Now the total interest capitalized is

Total interest is

= $520,500 + $725,640 + $272,115

= $1,518,255

And, the total avoidable interest is $842,250

So we considered the lesser amount i.e. $842,250

6 0
3 years ago
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