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Anastaziya [24]
3 years ago
5

Obama Company has identified that Bill Clinton’s receivable account of $100 is uncollectible. What is the journal entry needed t

o write off the account under the allowance method? Allowance for Doubtful Accounts 100 Bad Debts Expense 100 Allowance for Doubtful Accounts 100 Accounts Receivable 100 Accounts Receivable 100 Bad Debts Expense 100 Bad Debts Expense 100 Accounts Receivable 100
Business
1 answer:
DerKrebs [107]3 years ago
4 0

Answer:

Allowance for Doubtful Accounts 100 Accounts Receivable 100

Explanation:

The allowance method first estimates an allowance for doubtful debts.When the company receives the actual figure of the amount that have gone wrong, it writes off the  trade receivable and utilizes the allowance provided for

<u>When allowance is estimated </u>

Bad Debts (debit)

Allowance for doubtful debts (credit)

<u>When the  actual figure of the amount that have gone wrong is obtained</u>

Allowance for doubtful debts (debit)

Account Receivable (credit)

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Suppose you have ​$ cash today and you can invest it to become worth ​$ in years. What is the present purchasing power equivalen
IRINA_888 [86]

Answer: $900,599.04

Explanation:

The present purchasing power equivalent is the present worth of this investment.

The investment will earn 5% for the first 7 years and then 9% for the next 10.

As there are different rates, the present worth calculation will have to reflect that.

At the end of the first 7 years, the present worth of the invested amount given 10 more years of investing at 9%. The Present worth is;

= 3,000,000(Present worth factor, 9%, 10 years)

= 3,000,000 * 0.4224

= $1,267,200

Then what is the Present worth of $1,267,200 in the current year given that it will be invested for 7 years at 5% to get to $1,267,200.

= 1,267,200 (Present worth factor, 5%, 7 years)

= 1,267,200 * 0.7107

= $900,599.04

3 0
3 years ago
An economy initially has 200 units of physical capital per worker. Each year, it increases the amount of physical capital by 10%
zloy xaker [14]

Answer:

$1,025

Explanation:

Given that,

Initial physical capital per worker = 200 units

Percentage increase in physical capital per year = 10%

Initial output per worker = $1,000

Holding human capital and technology constant,

1% increase in physical capital per worker = 0.25% increase in the output per worker

Hence, if there is a 10% increase in physical capital each year then the increase in output per worker each year is calculated as follows:

= 10 × 0.25%

= 2.5%

Therefore, the estimated output per worker equal after one year:

= Initial output per worker + Increase in output per worker each year

= $1,000 + ($1,000 × 2.5%)

= $1,000 + $25

= $1,025

7 0
3 years ago
Emma, the facilities director for a college of business, was very involved in the purchase process for remodeling the student lo
Diano4ka-milaya [45]

Answer:

Procurement department is the best suited answer

Explanation:

Emma is following the procedure of procurement here as it is the responsibility of procurement to search the desired product and negotiate it. It is the job of procurement department to  issue purchase orders, develops term contracts, and acquires supplies and services. Although it is the higher authorities to have a final say but it is the job of procurement department to enlist and gather all the information for the higher authorities.

7 0
3 years ago
Why is it important to understand that the amount cash paid for taxes is different than the amount of income tax expense?
GarryVolchara [31]

Answer: To know the amount of tax the business should pay from reported profit which is different from it's actual tax bill

Explanation:

Income tax expense could be described as what is calculated that the company owes in taxes according to accounting rules. They are reported on the income statement.

While Income tax payable is described as the actual amount the company owes in taxes based on the rules of tax code. They appear on the balance sheet of the company accounting documents until the bills are cleared off or paid.

The reason for understanding the difference is to know the amount of tax the business should pay from reported profit which is different from it's actual tax bill

6 0
3 years ago
Ben is exhausting his money income consuming products A and B in such quantities that MUa/Pa = 6 and MUb/Pb = 4. Ben should purc
yaroslaw [1]

Answer:

Option (a) is correct.

Explanation:

Given the marginal utility per dollar for the two products as follows:

\frac{MU_{a} }{P_{a} } =6

\frac{MU_{b} }{P_{b} } =4

All the individuals wants to maximize their utility that is obtained from the consumption of goods. We can see that marginal utility per dollar of product A is higher than the marginal utility per dollar of product B which means that this consumer should purchase more quantity of product A and less quantity of product B.

It is going on until the point at which marginal utility per dollar of both the products becomes equal.

6 0
3 years ago
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