Which payment method typically charges the highest interest rate

On December 31, 2017, Extreme Fitness has adjusted balances of $960,000 in Accounts Receivable and $87,000 in Allowance for Doub

Paladinen [302]

Answer:

What amount would the company report as its net accounts receivable on December 31, 2017?

Accounts Receivable $873,000

Prepare the journal entry to write off the accounts on January 2, 2018.

Allowance for Uncollectible Accounts $ 26,000

Accounts Receivable $ 26,000

Assuming no other transactions occurred between December 31, 2017, and January 3, 2018, what amount would the company report as its net accounts receivable on January 3, 2018?

The same amount reported on December 31, 2017, if the company doesn't report any movement with the credit debtor there is nothing to do.

Has net accounts receivable changed from December 31, 2017?

The net accounts are the same there is not change in the balance because the write-off it's just a reclassification between the accounts, so the balance keep the same as before.

Explanation:

Accounts Receivable $873,000

The company reports as net accounts receivable the total amount on Accounts Receivable minus the total amount on the Allowance for Uncollectible Accounts which represent the amount of credit that won't be possible to collect, the result it's the total value on net accounts receivable.

Allowance for Uncollectible Accounts $ 26,000

Accounts Receivable $ 26,000

As the company just recognized the accounts not collectible, at the moment of the write off it's just a reclasification between the accounts of Allowance for Uncollectible Accounts and Accounts Receivable.

At this moment it's a certainly that the accounts won't be collected, that is why the entry is recorded.

6 0

3 years ago

Management team of Wolverine Corp. is considering the purchase of a new piece of equipment. They believe that new equipment is m

muminat

Answer:

Wolverine Corp.

a. The accounting rate of return = 50%

b. The payback period = 6 years ($200,000 * 6)

c. The net present value = ($39,600)

d. The net present value at 15% = ($237,200)

Explanation:

a) Data and Calculations:

Initial investment cost in new equipment = $1,200,000

Annual incremental net income from cost savings = $200,000

Salvage value of the new equipment = $200,000

Estimated useful life of equipment = 8 years

Hurdle rate = 10%

a. Accounting rate of return = (($200,000 * 8 + $200,000) - $1,200,000)/$1,200,000

= ($1,800,000 - $1,200,00)/$1,200,000

= $600,000/$1,200,000 * 100 = 50%

NPV at 10% hurdle rate:

Initial investment = $1,200,000 * 1 = $1,200,000

Annual incremental savings:

= $200,000 * 5.335 = $1,067,000

Salvage value = $200,000 * 0.467 93,400

Total benefits $1,160,400

NPV = ($39,600)

NPV at 15% hurdle rate:

Initial investment = $1,200,000 * 1 = $1,200,000

Annual incremental savings:

= $200,000 * 4.487 = $897,400

Salvage value = $200,000 * 0.327 65,400

Total benefits $962,800

NPV = ($237,200)

4 0

2 years ago

Which of the following items would be subtracted from net income when reporting cash flows from operating activities, using the

BigorU [14]

Answer:

The correct answer is Increase in accounts payable and unearned fees.

Explanation:

An account payable consists of a debt incurred by the company directly related to the economic activity of the company. An account payable is a debtor account in a company and indicates that it has to pay its suppliers (or other creditors).

The amounts that are accounted for as accounts payable come from the purchase of goods or services in terms of credit. So, accounts payable are similar to credits with the difference that banks are not involved.

5 0

3 years ago

Exercise 14-27 (Algorithmic) (LO. 3) On May 9, 2020, Glenna purchases 500 shares of Ignaz Company stock for $14,400. On June 30,

mars1129 [50]

Answer: uh huh, this my sh

All the girls stomp your feet like this

A few times I've been around that track

So it's not just gonna happen like that

'Cause I ain't no hollaback girl

I ain't no hollaback girl

A few times I've been around that track

So it's not just gonna happen like that

'Cause I ain't no hollaback girl

I ain't no hollaback girl

Ooh, ooh, this my sh, this my sh

I heard that you were talking sh

And you didn't think that I would hear it

People hear you talking like that

Getting everybody fired up

So I'm ready to attack, gonna lead the pack

Gonna get a touchdown, gonna take you out

That's right, put your pom-poms downs

Getting everybody fired up

A few times I've been around that track

So it's not just gonna happen like that

'Cause I ain't no hollaback girl

I ain't no hollaback girl

A few times I've been around that track

So it's not just gonna happen like that

'Cause I ain't no hollaback girl

I ain't no hollaback girl

Ooh, ooh, this my sh, this my sh

So that's right dude, meet me at the bleachers

No principals, no student-teachers

Both of us want to be the winner, but there can only be one

So I'm gonna fight, gonna give it my all

Gonna make you fall, gonna sock it to you

That's right I'm the last one standing, another one bites the dust

Few times I've been around that track

So it's not just gonna happen like that

'Cause I ain't no hollaback girl

I ain't no hollaback girl

A few times I've been around that track

So it's not just gonna happen like that

'Cause I ain't no hollaback girl

I ain't no hollaback girl

Ooh, ooh, this my sh, this my sh

Let me hear you say, this sh is bananas

B-A-N-A-N-A-S

This sh is bananas

B-A-N-A-N-A-S

Again, the sh is bananas

B-A-N-A-N-A-S

This sh is bananas

B-A-N-A-N-A-S

A few times I've been around that track

So it's not just gonna happen like that

'Cause I ain't no hollaback girl

I ain't no hollaback girl

A few times I've been around that track

So it's not just gonna happen like that

'Cause I ain't no hollaback girl

I ain't no hollaback girl

Ooh, ooh, this my sh, this my sh

5 0

3 years ago

bryan's company wanted to gain a greater market share on its bicycle products so it built in greater functionality to the bikes

Anarel [89]

Option (b) is the best choice. The part of value creation that Bryan's business is focused on is value.

<h3>What exactly does value creation entail?</h3>

Value creation is the process of transforming effort and resources into something that satisfies the needs of others. That includes things like people constructing something in a factory, farmers cultivating crops, and other intangible assets like computer code and original ideas.

<h3>What is the secret of value creation?</h3>

Without a grasp of the potential consumer and their business, value creation is impossible. Before engaging in prolonged conversation with a lead, salespeople should spend a significant amount of time investigating the lead.

Learn more about value creation: brainly.com/question/20741982

#SPJ4

5 0

9 months ago