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klio [65]
3 years ago
10

As of December 31, 2016, Amy Jo's Appliances had unadjusted account balances in accounts receivable of $313,000 and $870 in the

allowance for uncollectible accounts, following 2016 write-offs of $6,380 in bad debts. An analysis of Amy Jo's December 31, 2016, accounts receivable suggests that the allowance for uncollectible accounts should be 3% of accounts receivable. Bad debt expense for 2016 should be: Multiple Choice a. $6,380. b. $9,390. c. $8,520. d. None of these answer choices are correct.
Business
1 answer:
Fantom [35]3 years ago
5 0

Answer:

Bad debt expense for 2016 should be: c. $8,520

Explanation:

As of December 31, 2016, Amy Jo's Appliances had  accounts receivable of $313,000 and the allowance for uncollectible accounts should be 3% of accounts receivable

Bad debts are estimated: 3% x $313,000 = $9,390

Amy Jo's Appliances had $870 in the allowance for uncollectible accounts

Bad debts expense = $9,390 - $870 = $8,520

The entry will be made:

Debit Bad debts expense $8,520

Credit Allowance for uncollectible accounts $8,520

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Kountry Kitchen has a cost of equity of 10.6 percent, a pretax cost of debt of 5.2 percent, and the tax rate is 39 percent. If t
kap26 [50]

Answer: .27

Explanation:

The Debt to Equity Ratio is the amount of Debt per dollar that the company owes per dollar of Equity. It must add up to 1.

The Weighted Average Cost of Capital measures just how much a company needs to pay to it's capital holders including shareholders and debt holders.

The formula is,

WACC = (Cost of equity * Weight of equity) + (Cost of debt * Weight of debt)

Remember that Debt is tax deductible so the After tax cost of debt should be,

= 5.2% ( 1 - tax rate)

= 5.2% * ( 1 - 39%)

= 3.172%.

The debt weight is the amount of debt that the company has per dollar so that means that it is also the Debt to Equity ratio. Denote it as 'x' to find it. Remember that they must add up to one.

WACC = (Cost of equity * Weight of equity) + (Cost of debt * Weight of debt)

8.59% = 10.6% ( 1 - x) + 3.172%( x)

8.59% = 10.6% - 10.6%x + 3.172%x

8.59% = 10.6% - 7.428%x

7.428%x = 10.6% - 8.59%

7.428%x = 2.01%

x = 0.271

= 27%

Debt to Equity is 0.27.

7 0
3 years ago
_____ is the element in the promotional mix of a marketing plan that evaluates the public’s attitudes, identifies issues that ma
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Answer: Public Relations

Explanation: The elements of a promotional marketing mix are the resources an organisation engages in its marketing promotion. They are:

Advertising, public relations, sales promotion, direct marketing and personal selling.

The above listed elements have there unique effect on the sales if an organisation.

Advertising is used to create an awareness of the product to the consumer using all forms of advertising such as radio jingle television advert, billboards etc.

Public relations is used to find out the effect of the products in the market and also to get feedbacks from consumer which will enable mgt to plan on ways to correct any issue observed.

Sales promotions are ways of giving to the consumers fee products as rewards for loyalty

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Personal selling is the act of selling the products one on one to customers

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4 years ago
The opportunity cost of an action: Group of answer choices can be determined by considering both the benefits that flow from as
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Answer:

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Explanation:

Opportunity cost is the cost or an expense or the value of the next best possible thing which the person or an individual gave up whenever make or take a decision.

In short, it is the loss of the gain that is potential from the other alternatives which are available when an individual or person selects the alternative.

Therefore, the action of the opportunity cost is the cost which is the subjective measure, that could be determined only through individual, who selects the action.

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The "bail-out" money that went to giant financial institutions like citibank and goldman sachs, along with general motors and ch
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Which of the five competitive forces is influencing a passenger train line, when a new automobile manufacturer causes a reductio
FromTheMoon [43]

Hi thank you for using brainly.com

<span>The answer to this question is “availability of substitutes“. The reduction in the number of people riding trains is due to the fact that a new substitute, automobile, is available in the market.</span> <span>
Hope that helps!</span>
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