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Karolina [17]
2 years ago
15

At year-end, Yates Company estimates that $1,500 of its accounts receivable balance is uncollectible. Yates uses the allowance m

ethod to account for bad debts. The entry to record this adjusting entry would include a:
Business
1 answer:
erastova [34]2 years ago
4 0

Answer:

debit to Bad Debts Expense and credit to Allowance for Doubtful Accounts

Explanation:

Based on the information provided for this scenario it can be said that the entry to record this adjusting entry would include a debit to Bad Debts Expense and credit to Allowance for Doubtful Accounts. Meaning that the bad debts expense is increasing while the same amount is being taken from the allowance for doubtful accounts. This is what the allowance method is used for, it provides an advance for uncollectible accounts, by setting aside money in a reserve account.

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Sweet Tooth Candy Company budgeted the following costs for anticipated production for August:
lidiya [134]

Answer:

Fixed costs= $73,760

Variable cost= $159,430

Explanation:

<u>First, let's separate the factory overhead costs:</u>

<u></u>

Power and light 40,450

Factory insurance 23,560

Production supervisor wages 118,980

Production control wages 30,930

Factory depreciation 19,270

<u>Now, the fixed and variable costs:</u>

Fixed costs= Factory insurance 23,560  + Production control wages 30,930 + Factory depreciation 19,270

Fixed costs= $73,760

Variable cost= Power and light 40,450 + Production supervisor wages 118,980

Variable cost= $159,430

6 0
2 years ago
Two main reasons a company will market its products are to _____. (Select all that apply)
Leni [432]

Answer:

3. consumers know what is available

Explanation:

3 0
2 years ago
You want to buy a house that costs $140,000. You have $14,000 for a down payment, but your credit is such that mortgage companie
rodikova [14]

Answer:

Kindly check explanation

Explanation:

Given the following :

Cost of house = $140,000

Down payment = $14000

Take back mortgage = 126000 = PV

Rate (r) = 5%

Yearly payment one can afford = 22000

a. If the loan was amortized over 3 years, how large would each annual payment be? Could you afford those payments?

Number of period = 3

Using the relation:

PMT = r(PV) / 1 - (1 + r)^-n

PMT = 0.05(126000) / 1 - 1.05^-3

PMT = 6300 / (1-0.8638375)

PMT = 46,268.23

He won't be able to afford it, as the monthly payment is larger than the affordable amount of $22000

b. If the loan was amortized over 30 years, what would each payment be? Could you afford those payments?

PMT = r(PV) / 1 - (1 + r)^-n

PMT = 0.05(126000) / 1 - 1.05^-30

PMT = 6300 / (1-0.2313774)

PMT = 8196.48

He would be able to afford it, as the monthly payment is lower than the affordable amount of $22000

c. To satisfy the seller, the 30-year mortgage loan would be written as a balloon note, which means that at the end of the third year, you would have to make the regular payment plus the remaining balance on the loan. What would the loan balance be at the end of Year 3, and what would the balloon payment be?

Present value of remaining balance after the 3rd year:

Present Value (PV) = PMT[(1 - (1 + r)^-n) / r]

Where

PMT = periodic payment = 8196.48

r = Interest rate = 5% = 0.05

n = number of periods = 30 - 3 = 27

PV = 8196.48[(1 - (1 + 0.05)^-27) / 0.05]

PV = 8196.48[(1 - (1. 05)^-27) / 0.05]

PV = 8196.48[0.7321516 / 0.05]

PV = 120,021.32

Balloon payment :

120,021.32 + 8196.48 = 128,217.80

4 0
3 years ago
A company has net working capital of $0, current liabilities of $25 and total assets equal to $100. What is its current ratio?
kap26 [50]
I believe the answer is B) 1.0
6 0
3 years ago
A company has a process that results in 12,000 pounds of Product A that can be sold for $8 per pound. An alternative would be to
eimsori [14]

Answer:

The correct answer is management should sell Product A now.

Explanation:

According to the scenario, computation of the given data are as follows:

Total production = 12,000 pounds

Sell price = $8 per pound

If process further, Cost = $80,000

Selling price = $14 per pound

So, If we sell the product without further process, than

Total sale value = 12,000 × $8 = $96,000

And, if we sell the product after further processing, then

Total sale value = (12,000 × $14) - $80,000

= $88,000.

As, sales value is more in selling the product without further process, so management should sell the product without further processing it.

8 0
3 years ago
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