Since the company is using the percentage of receivable
method in computing the allowance for doubtful account, the amount that will be
computed will be the ending balance of the allowance for doubtful account and
not the doubtful account expense itself. To compute for the allowance for
doubtful account using this method, you need to multiply the ending balance of
the accounts receivable with the given percentage. Therefore, the ending
allowance for doubtful accounts would be $15,000 ($150,000 x 10%).
To compute the amount of adjustment to the allowance for
doubtful accounts, we can come up with an equation:
Beginning balance ($16,000) + X (adjustment) – allowance written
off ($29,000) = Ending balance ($15,000)
Computing the equation, you can get the amount of $28,000
which is the adjustment of allowance for doubtful accounts or simply said, this
is the doubtful accounts expense for the year.
Answer:
c. $42,000 increase
Explanation:
The computation of the change in cash realizable value is shown below:
= Adjusted cash balance - Cash realizable value
where,
Adjusted cash balance = Ending balance of accounts receivable + sales on account - collections - written off amount - bad debt expense
= $525,000 + $145,000 - $86,000 - $8,000 - $54,000
= $522,000
And, the cash realizable value is $480,000
Now put these values to the above formula
So, the value would be equal to
= $522,000 - $480,000
= $42,000 increase
When a country has a strong currency, generally its export decreases - this is the answer to the first question.
Imagine, a tone of rice costs 100 dollars, that is 100 pounds. With a strong dollar, it's 120 pounds now - the British will be able to afford less of US rice now!
About the second question - I think that if neither has an absolute advantage, this also likely means that neither has more natural resources.
now, country A exports milk to country B, which means that it's cheaper to produce milk in the country A. Therefore, the answer "<span>The opportunity cost of producing milk is lower for Country A" is correct.</span>
Answer:
c) keep a portion of deposits in reserves but lend out the rest.
Explanation:
Fractional reserve banking -
It is the system , where the fraction of the bank deposits are backed by the actual cash money on hand and is for the withdrawal purpose .
This helps to expand economy of the country , by lending more .
The bank reserves certain amount with itself and the rest amount is given for the lending purpose .
