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mr_godi [17]
3 years ago
15

Farr Co. elects to use the percentage-of-sales basis in 2017 to record bad debt expense. It estimates that 2% of net credit sale

s will become uncollectible. Sales revenues are $801,000 for 2017, sales returns and allowances are $40,100, and the allowance for doubtful accounts has a credit balance of $8,900. Prepare the adjusting entry to record bad debt expense in 2017.
Business
1 answer:
Art [367]3 years ago
6 0

Answer:

The Journal entry is as follows:

Bad Debt Expense A/c                         Dr. $15,218

To allowance for doubtful accounts                      $15,218

(To record the bad debt expense in 2017)              

Working notes:

Bad Debt Expense in 2017:

= (Sales revenue - allowances) × 2%

= ($801,000 - $40,100) × 2%

= $760,900 × 0.02

= $15,218

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3 years ago
Choose the correct alternative regarding tax revenue:
insens350 [35]

The correct alternative regarding tax revenue:

<u>B-Personal income tax is currently the largest source of government revenue in South Africa.</u>

<u>Direct </u><u>Taxes</u>

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<u>Indirect </u><u>Taxes</u>

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5 0
2 years ago
A customer is dollar cost averaging by investing $400 per month into a mutual fund. Over 4 months, the customer has made purchas
Nostrana [21]

Answer:

$0.32 per share

Explanation:

For computing the lower price per share first we have to find out the average cost per share which is shown below:

1 $400 ÷ $13 = 30.769

2 $400 ÷ $10 = 40.000

3 $400 ÷ $8 = 50.000

4 $400 ÷ $9 = 44.444

$1,600  = 165.213 shares

Average cost per share = Total cost ÷ total number of shares  

                                       = $1,600 ÷ $165.213 shares

                                       = $9.68 per share

And, the average price per share is

= ($13 + $10 + $8 + $9) ÷ 4

= $10 per share

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= $10 per share - $9.68 per share

= $0.32 per share

6 0
4 years ago
what monthly sharpe and information ratios has hedge fund cphf realized before fees? also, what is the maximum drawdown of hedge
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The Sharpe ratio provides an indication of a fund's returns relative to its level of risk. This is calculated by subtracting a predetermined risk-free rate from the fund's annualized return to generate the fund's excess return, then dividing it by the fund's volatility over the same period.

Investors most commonly evaluate hedge funds by assessing their Sharpe Ratio over a number of years. A Sharpe Ratio measures performance while taking into account the amount of risk to which the investments are exposed.

Ratios do not provide any insight into how better one fund is compared to the other. Sharpe ratio ignores the serial correlation between hedge fund returns. If the serial correlation is present in the month-to-month returns, the same can result in overstating the Sharpe ratio.

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6 0
2 years ago
There are 100 dog kennels in Atlanta. An economist studying the pricing behavior of dog kennels tells you that she is limiting h
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Answer:

D short run.

Explanation:

Based on the information provided within the question it can be said that the time period this economist referred to as the short run. This refers to a time period in which the quantity of an input in the research is always the same while the others can change. Which in this situation the fixed variable would be the amount of dog kennels in Atlanta which would allow the researcher to correctly study the pricing behavior of the dog kennels.

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7 0
3 years ago
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