Answer:
D. Not effective
Explanation:
a. Effective if there are no other potential buyers.
b. Effective if TPI does not advertise the offer generally.
c. Effective if U-Store-It is currently expanding its facilities.
d. Not effective.
From the question, we are informed about how Topp Properties, Inc. (TPI), plans to offer to sell its warehouse to U-Store-It Center for a certain price, but neglects to communicate the offer to U-Store-It. In this case This offer is Not effective, this is because the offer wasnt communicated to U-Store. An offer can only be regarded as effective offer when 1) offeror is effective and serious to perform the offer
2) the terms and conditions of the offer is certain.
3) the offer is communicated to the offeree.
Answer:
At the end of the first year, Borge should report unamortized bond discount of a. $169,470.
Explanation:
Solution:
Interest amount =
($2,817,000 * 0.09) - ($3,000,000 * 0.08)
=$13,530
Bond Disc. Amount; ($3,000,000 - $2,817,000) - $13,530
= $183,000 - $13,530
= $169,470
Answer:
Follows are the solution to the given points:
Explanation:
In point a:
Formula:

In point b:
Formula:

In point c:
Formula:


In point d:
Formula:

In point e:
Formula:

Answer:
The existing balance in Allowance for Doubtful Accounts is considered in computing bad debt expense in the percentage of receivables basis.
Explanation:
Percentage of receivables basis is preferred over direct write-off of bad debt expenses and is used in the calculation of bad debts, this is done by multiplying the accounts receivable by percentage of expected noncollectable debts and then subtracting accounts for bad debts are then subtracted from accounts receivable on the balance sheet and the result reported as net accounts receivable. It is used in calculating the bad debt expense in each account reporting period.