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Maksim231197 [3]
3 years ago
9

Australia. Inc. had a $140,000 beginning balance in Accounts Receivable and a $5,000 credit balance in the Allowance for Doubtfu

l Accounts. During the year, credit sales were $800,000 and customers' accounts collected were $810,000. Also, $4,000 in worthless accounts were written off. An aging of the accounts indicates that 5% of the end-of-the-year Accounts Receivable balance is doubtful for collection. What amount of Bad Debts Expense should be provided at year-end?
(A) $6,300
(B) $7,300
(C) $7,600
(D) $5,300
Business
1 answer:
irina [24]3 years ago
7 0

Answer:

(D) $5,300

Explanation:

During the year, credit sales were $800,000 => Accounts Receivable increased $800,000

Customers' accounts collected were $810,000=> Accounts Receivable decreased $810,000

The company wrote off $4,000 in worthless accounts => Accounts Receivable decreased $4,000 and the Allowance for Doubtful Accounts decreased $4,000

At the end of the year, before adjusting, the balance of

Accounts Receivable = $140,000+$800,000-$810,000-$4,000 = $126,000

Allowance for Doubtful Accounts = $5,000-$4,000 = $1,000

Bad Debts were estimated: 5% x $126,000 = $6,300

Bad Debts Expense should be provided: $6,300-$1,000 = $5,300

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Answer:

148.02 days

Explanation:

The computation of the cash conversion cycle is shown below:

As we know that

Cash conversion cycle is = Days inventory outstanding + days sale outstanding - days payable outstanding

where,

Number of days inventory outstanding is

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= $75000 ÷ ($360,000 ÷ 365 days)

= 76.04 days

Number of days sales outstanding is

= Average account receivable ÷ Average sales per day

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= 97.33 days

And, the number of days payable outstanding is

= Average accounts payable ÷ cost pf goods sold per day

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= 25.35 days

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= 148.02 days

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3 years ago
_____ are the taken-for-granted beliefs and philosophies that are so ingrained that employees simply act on them rather than que
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Answer:

5. Basic underlying assumptions

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Basic underlying assumptions represent the core and essence of culture which are too difficult to observe because they exist in unconscious levels and least observable part of a culture. They can be taken lightly but they have a great influence and form the key to understanding why things are they way they are.

8 0
3 years ago
Why do markets exist?
FinnZ [79.3K]

Answer:

The correct answer is *to provide a place for people to trade goods and services

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a market is a place where the sellers and buyers meet and trade, in which the buyers buy what they need and want from the sellers at a price both of them can agree upon.

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True or false: The allowance method of accounting for bad debts records the loss from an uncollectible account receivable when i
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false

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If you borrow $25,000 from a local finance company and you are required to pay $4,424.50 per year for 10 years, what is the annu
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Use this formula:

A= P(1+rt),

A is the final investment amount (4424.50x10)

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If A= P(1+rt),

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(1+r(10)=( 44,245)/25,000

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