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mojhsa [17]
3 years ago
12

Costs associated with the manufacture of miniature high-sensitivity piezoresistive pressure transducers is, $73,000 per year. A

clever industrial engineer found that by spending $16,000 now to reconfigure the production line and reprogram two of the robotic arms, the cost will go down to $58,000 next year and $52,000 in years 2 through 5. Using an interest rate of 10% per year, determine the present worth of the savings due to the reconfiguration. (Hint: Include the reconfiguration cost.)
Business
1 answer:
Ilia_Sergeevich [38]3 years ago
3 0

Answer:

$58,149

Explanation:

Calculation to determine the present worth of the savings

First step is to calculate for Present worth before

Present worth before= 73,000(P/A,10%,5)

Present worth before= 73,000(3.7908)

Present worth before= $276,728

Second step is to calculate for Present worth after

Present worth after= 16,000 + 58,000(P/F,10%,1) + 52,000(P/A,10%,4)(P/F,10%,1)

Present worth after= 16,000 + 58,000(0.9091) + 52,000(3.1699)(0.9091)

Present worth after=16,000+52,728+149,851

Present worth after= $218,579

Last step is to calculate for Present worth of savings using this formula

Present worth of savings=Present worth before-Present worth after

Let plug in the formula

Present worth of savings = 276,728–218,579

Present worth of savings= $58,149

Therefore the present worth of the savings will be $58,149

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Answer:

$40

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On January 1, 2019, Shay Company issues $400,000 of 10%, 12-year bonds. The bonds sell for $391,000. Six years later, on January
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$9,000

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= Par value of the bond - issued price of the bond

= $400,000 - $391,000

= $9,000

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Answer:

Determine its bad debt expense for 2020. Bad debt expense for 20  

Cr Bad Debt Expense $ 524 - Credit, which means a profit in the income statement.

Allowance for Uncollectible Accounts Balance

$ 4,380  - $524 = $ 3,856

Explanation:

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Dr Accounts receivable $ 48,200

Cr Allowance for Uncollectible Accounts $ 4,380

Net Credit Sales $ 1,253,200

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Cr Bad Debt Expense $ 524

Allowance for Uncollectible Accounts Balance

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If the company applies the allowance method, it means that the account Allowance for Uncollectible Accounts must show as balance the % estimated of accounts receivables as CREDIT, if the company had balances that differ from that value then it must be adjusted to the new estimated value.

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"When customers buy products on credits but the company cannot collect the debt, then it's necessary to cancel the unpaid invoice as uncollectible."

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The other way is to determine a percentage of the total amount of accounts receivable as bad debts, there are many ways to analyze accounts receivable and calculate the value of bad debts.

When the company has the percentage of uncollectible accounts, the required journal entry is Bad Expenses (debit) with Allowance for Uncollectible Accounts (credit)

At the time of cancellation, since the expenses were recognized before, we only use the Allowance for Uncollectible Accounts (Debit)  with accounts receivable (credit), with this we are recognizing the bad credit of the company.

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sweet-ann [11.9K]

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