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3 years ago

If there is a substantial increase in bad debts, what might this mean?

1 answer:

6 0

In the case of lending money (for a vehicle or a mortgage for example), this may be an indication of irresponsible lending practices. If there is a substantial increase in bad debts, it means that less creditworthy borrowers (borrowers who are less capable or likely to repay) are obtaining credit too easily.

In the case of bad accounts receivable for a company, there are similar implications, but it also could mean that the inventory that a company is selling is not being sold quickly enough by the retailer. One example could be ToysRUs having overdue accounts due to its partnered toy makers, such as Hasbro. It could be a sign that the demand for the product is not sufficiently high to sell the full amount of purchased inventory, at least when being sold through that retailer.

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Bramble sells softball equipment. On November 14, they shipped $4300 worth of softball uniforms to Novak Middle School, terms 3/

Dafna1 [17]

Answer:

$3,850

Explanation:

Calculation to determine What amount will be recognized as accounts receivable, net on the balance sheet as of November 30

Using this formula

Accounts receivable=Goods shipped -Defective merchandise return

Let Plug in the formula

Accounts receivable=$4,300-$450

Accounts receivable=$3,850

Therefore What amount will be recognized as accounts receivable, net on the balance sheet as of November 30 is $3,850

5 0

3 years ago

Data concerning Pellegren Corporation's single product appear below: Fixed expenses are $531,000 per month. The company is curre

GrogVix [38]

Answer:

a. decrease of $18,000

Explanation:

The calculation of overall effect on the company's monthly net operating income is shown below:-

<u>Particulars Current Proposed </u>

Sales $800,000 $837,000

($200 × 4,000) (200 - 14) × (4,000 + 500)

Variable

expenses $160,000 $180,000

(40 × 4,000) (40 × (4,000 + 500))

Contribution

margin $640,000 $657,000

Fixed

expenses $531,000 $566,000

($531,000 + 350,00)

Net operating

income $109,000 $91,000

Decrease in net operating income is

= $109,000 - $91000

= $18,000

6 0

3 years ago

Gabriele Enterprises has bonds on the market making annual payments, with eight years to maturity, a par value of $1,000, and se

Elena-2011 [213]

please find the attached for an explanation

Download docx

4 0

3 years ago

Why microeconomics is useful in business decision making? Explain

adelina 88 [10]

Explanation: The study of microeconomics helps the decision makers to analyze and determine how the productive resources are allocated for various goods and services. It also helps in solving the producers' dilemma of what to produce, how much to produce and for whom to produce. <33

7 0

3 years ago

Read 2 more answers

A taxpayer must receive voting common stock to be eligible for deferral in a Section 351 exchange. True False

hodyreva [135]

Answer:

True

Explanation:

Section 351 (a) establishes that no gain or loss should be recognized when property is transferred to a corporation:

in exchange of stock in that corporation (might receive common stock or share class stocks)
as soon as the exchange is complete, the new stockholder must be in control of the corporation.

Not all common stocks have the same voting rights, that is why they are divided into share classes which assign separate voting rights or powers. Section 351 does not include preferred stocks.

3 0

3 years ago