On what does consumer’s willingness to pay depends?

is considering permanently shiutting down a department that has an annual contribution margin of $25,000 and $75,000 in annual f

Sergeu [11.5K]

Answer:

Avoidable fixed costs = $75,000 - $19,500 = $55,500

Segment margin = Contribution margin - Avoidable fixed costs

Segment margin = $25,000 - $55,500

Segment margin = -$30,500

If the department were eliminated, the company would eliminate the department's negative segment margin of $30,500

5 0

2 years ago

2.1 Choose/identify FIVE businesses and conduct research on the CSI projects and

Ksivusya [100]

The FIVE businesses that CSI projects have be research on are:

Education business sector
Health business sector
Food security and agriculture business sectors.
Safety business
Skill development business

<h3>
What is the Outline the CSI projects that businesses use to support the local community?</h3>

They are:

Business improves Schools in my communities through the aid of aiding them with better educational facilities.
Business also provides some Job opportunities for the unemployed individuals in the communities.
Businesses do contribute to the community via employee volunteering (EV).

<h3>The ways that business can contribute a lot of time and effort to improving the well-being of employees are:</h3>

Education business sector - Provide scholarship
Health business sector - provide free eye care services and medical aids.
Food security and agriculture business sectors - free fertilizer distribution to local communities
Safety business - creation of billboards with safety tips as well as safety education
Skill development business - organizing of skill acquisition program for local communities.

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5 0

11 months ago

The December 31, 2020 balance sheet of Barone Company had Accounts Receivable of $400,000 and a credit balance in Allowance for

sergey [27]

Barone Company

General Journal for 2020 transactions:

Debit Accounts Receivable $1,500,000

Credit Sales Revenue $1,500,000

To record sales on account:

Debit Sales Returns $50,000

Credit Accounts Receivable $50,000

To record sales returns and allowances:

Debit Cash Account $1,250,000

Credit Accounts Receivable $1,250,000

To record cash collections from customers:

Debit Allowance for Doubtful Accounts $36,000

Credit Accounts Receivable $36,000

To record uncollectible written-off.

Debit Accounts Receivable $6,000

Credit Allowance for Doubtful Accounts $6,000

To reinstate previously written off accounts.

Debit Cash Account $6,000

Credit Accounts Receivable $6,000

To record collection of previous write-off.

Adjusting Entry at December 31, 2020:

B. Using 3% of net sales:

Debit Bad Debt Expense $41,500

Credit Allowance for Doubtful Accounts $41,500

To record bad debt expense.

C. Using 8% of Receivables:

Debit Bad Debt Expense $43,120

Credit Allowance for Doubtful Accounts $43,1`20

To record bad debt expense.

D. 3% of net sales produces a higher net income and by $1,620

Simplification:

1. Accounts Receivable

Beginning balance (debit) = $400,000

Sales 1,500,000

Sales Returns & allowances (50,000)

Cash Collections (1,250,000)

Uncollected write-off (36,000)

Reinstatement of write-off 6,000

Cash Collection (6,000)

Ending balance $564,000

2. Allowance for Doubtful Accounts

Beginning balance (Credit) $32,000

Uncollectible write-off (36,000)

Reinstatement of write-off 6,000

Balance pre-year adjustment $2,000

Using 3% of net sales

Bad debt expense $41,500

Ending balance (credit) $43,500

Balance pre-year adjustment $2,000

Using 8% of receivable balance

Bad debt expense $43,120

Ending balance (credit) $45,120

3. Allowance for Doubtful Accounts (Ending balance)

3% of net sales = $1,450,000 x 3% = $43,500

8% of receivables = $564,000 x8% = $45,120

What Is a Bad Debt Expense?

A bad debt expense is recognized when a receivable is no longer collectible because a customer is unable to fulfill their obligation to pay an outstanding debt due to bankruptcy or other financial problems.

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6 0

8 months ago

What is the annual percentage rate (APR) on a credit card? A. The expected return on the credit card company's investments B. Th

Sliva [168]

Answer:

Answer choice C

Explanation:

To be short and to the point, APR literally just means the percent of the money you owe that will receive interest over the course of the year. If you owe $100 on a credit card with 6% APR, then you'll be charged interest for $6 because it's 6%. Your final yearly payment would end up being $106 since the $6 is tacked on. :)

8 0

2 years ago

Read 2 more answers

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

True [87]

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.

8 0

2 years ago