Answer:
A credit entry of $96,000
Explanation:
When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.
To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.
Given that Past experience indicates that the allowance should be 10% of the balance in receivables
Allowance = 10% * $600,000
= $60,000
Amount written off of $90,000 would have made the balance in the allowance for doubtful debts to
= $90,000 - $54,000
= $36,000 (Debit)
However, the balance in the account at the end of the year should amount to $60,000 hence the adjustments required
= $60,000 + $36,000
= $96,000 (credit)
Answer:
1. c. has no control over the price it pays, or receives,in the market
2. c. firms are at the mercy of market forces.
3. buyers can expect to find consistently low prices and wide availability of the good that they want.
Explanation:
A competitive market has the following characteristics.
1. Firms are price takers. They do not set the price for their goods and services. They accept the price set by market forces. Price is set where the demand curve intersects the supply curve.
2. There are no product differentiation. All sellers sell identical goods and services.
3. There are no barriers to entry or exit of firms in the industry.
4. Firms make zero economic profit in the long run.
5. There are many sellers and buyers.
I hope my answer helps you.
The resource of production called <em>natural resources </em>includes mineral deposits underground. Only the things that man hasn't made himself, but which are given by nature, can be considered natural resources.
C by considering all possible outcome
Answer:
$ + 195593.6
Explanation:
First lets calculate the After depreciation net book value of the machine by computing depreciation as per MACRS 5-year class
Year 1 % Dep = 20%
Year 2 % Dep = 32%
Year 3 % Dep = 19.20%
So NBV of machine after 3 years
= 580,000 - (580000*0.20)-(580000*0.32)-(580000*0.1920)
=$167,040
We calculate the net taxable value of the gain as
=180,000 - 167040 = $12,960
Tax = 12960*0.34 = $4406.4
Thus the net cash flow proceeds from the sale of machine are as follows,
NCF = 180,000 - 4406.4 + 20,000 = $195593.6
where $20,000 is the freed working capital.
Hope that helps.
