Answer and Explanation:
The computation is shown below:
a.
The amount of the adjusting entry for bad debt expense should be
= $45,000 + $5,400
= $50,400
The journal entry should be
Bad Debt Expense Dr. 50,400
To Allowance for Doubtful Accounts Cr. 50,400
(Being the bad debt expense is recorded)
b.
Accounts Receivable 675,000
Allowance for Doubtful Accounts 45,000
Bad Debt Expense 50,400
c.
Accounts Receivable 675,000
Less: Allowance for Doubtful Accounts (45,000)
Net realizable value of accounts receivable 630,000
Answer:
The company’s systemic risk level (beta coefficient) is 2.44%
Explanation:
According to Capm Expected Return of Stock = Risk Free Rate + Beta*(Market Return - Risk Free Rate)
Beta = (Expected Return of Stock - Risk freed Rate)/(Market return -Risk free Rate)
= (12.5% - 1.5%)/(6% - 1.5%)
=2.44
%
Therefore, The company’s systemic risk level (beta coefficient) is 2.44%
Systematic risk is the risk which affects all the stocks of the economy. It cannot be diversified away. Example interest rate and inflation in the economy. Beta represents systematic risk of the company.
Answer:
Limited partner
Explanation:
A limited partner has limited liabilities and doesn't take an active role in managing the operation of the business. A limited partner is also known as a silent partner.
I hope my answer helps you
Answer:
1. Betty ; 2. Betty ; 3. Candies
Explanation:
Absolute Advantage is when one can produce more output of a good per unit of input , comparatively than other .
Comparative Advantage is when one can produce a good's output by comparatively lesser opportunity cost (other good sacrifised) than other .
AI : Chocolates = 10 , Candies = 5
Betty : Chocolates = 30 , Candies = 10
As it can be seen : Betty can produce both of more - chocolates (30) & candies(10) than AI (10,5) . So, it has Absolute Advantage in both - Candies & Chocolates.
However, AI is twice more productive in chocolates than toffees (10,5) ; but Betty is thrice more productive in chocolates than toffees (30,10). Comparatively, Betty is more productive in Chocolates. So opportunity cost of Chocolate in terms of sacrifised toffees is less for Betty 0.33 (10/30) than AI 0.5 (5/10).
So, trade between them would be : Betty selling its comparative advantage good Chocolate , AI selling its less comparative disadvantage good Candies.
