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4 years ago

The __________ decision trap is also known as "throwing good money after bad."

1 answer:

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The <u>escalation of commitment</u><u /> decision trap is also known as "throwing good money after bad". This typically occurs when people tend to get locked into losing propositions for fear of leaving/quitting and getting a bad outlook .

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Pharoah Company purchased a new machine on October 1, 2019, at a cost of $138,000. The company estimated that the machine will h

andre [41]

Answer:

A. $29,000

B. $19,720

C. $69,000

$34,500

Explanation:

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

($138,000 - $22,000) / 4 = $29,000

Unit of activity = Cost of asset - Salvage value) / Total working hours

= ($138,000 - $22,000) / 10000 = $11.6

$11.6 × 1700 = $19,720

Double declining method = Depreciation factor × net book value

Depreciation factor = 2 × (1/useful life)

2(1/4) = 0.5

0.5 × $138,000 = $69,000

Net book value = $138,000 - $69,000 = $69,000

Depreciationexpense for the second year = 0.5 × $69,000 = $34,500

I hope my answer helps you

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3 years ago

Liability insurance is…

Kaylis [27]

Answer:

Explanation:

Liability means being responsible for something, usually by law, so liability insurance is when insurance protects you from charges from the other party's injuries and/or damage to their car in the case of an accident.

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2 years ago

Daniel and his intramural team just won the co-ed volleyball tournament, and they’re celebrating at an all-you-can-eat pizza pla

Gre4nikov [31]

Answer:

a. trade-offs

c. marginal thinking

Explanation:

Marginal thinking is when a decision maker evaluates the marginal benefits and marginal cost of a certain activity. Daniel is trying to evaluate if the extra calories (marginal cost) he would get from eating the 5th size of pizza (marginal benefit) is worth it.

Trade offs is also known as opportunity cost. It is what is sacrificed in order to carry out a certain activity. If Daniel eats the pizza, he's sacrificing a more healthy body for the extra slice of pizza.

I hope my answer helps you

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3 years ago

Marigold Corp. is authorized to issue both preferred and common stock. The par value of the preferred is $50. During the first y

ohaa [14]

Answer:

Dr cash $ 2,473,500.00

Cr preferred stock $ 2,425,000.00

Cr paid-in capital in excess of par-preferred stock $48,500

Dr cash $ 3,422,000.00

Cr preferred stock $ 2,900,000

Cr paid-in capital in excess of par-preferred stock $522,000

Explanation:

The issue of preferred shares on Feb 1 would result in cash proceeds of $ $2,473,500.00 i.e (48,500*$51)

The proceeds would be debited to cash while preferred stock account is credited with par amount of $ 2,425,000.00 (48,500*$50) and the remaining amount of $ 48,500.00 is credited to paid-in capital in excess of par-preferred stock.

The issue of preferred shares on July 1 would result in cash proceeds of $3,422,000.00 i.e (58,000*$59)

The proceeds would be debited to cash while preferred stock account is credited with par amount of $ 2,900,000.00 (58000*$50) and the remaining amount of $ 522,000.00 is credited to paid-in capital in excess of par-preferred stock

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3 years ago

Accounts Receivable As of December 31, 2016, Nala Incorporated reported accounts receivable for $275,000 less allowance for doub

juin [17]

Answer:

1. Dr Accounts receivable $180,000

Cr Sales $180,000

2. Dr Cash $125,000

Cr Accounts receivable $125,000

3. Dr Sales returns and allowances $20,000

Cr Accounts receivable $20,000

4. Dr Allowance for doubtful accounts $35,000

Cr Accounts receivable $35,000

5. Dr Accounts receivable $2,500

Cr Allowance for doubtful accounts $2,500

Dr Cash $2,500

Cr Accounts receivable $2,500

B. Dr Bad debt expense $27,500

Cr Allowance for doubtful accounts $27,500

Explanation:

A1. To record the sale on account we will debit accounts receivable as our collectible to customer and credit sales in the amount of $180,000

A2. To record the collection, we will recognize the receipt of cash so we have to debit cash and credit accounts receivable to deduct the collectible balance in the amount of $125,000

A3. When the company receives returns from the customers, it will be charged to sales returns and allowances account so we have to debit it and credit accounts receivables in the amount of $20,000 to deduct collectibles to suppliers. Said, sales returns and allowances account is a contra account of sales. Thus, any amount recorded under it will be charged against (deduction) our sales.

A4. During the write off, we will debit allowance for doubtful accounts and credit accounts receivables to reduce its amount from the worthless receivables that is deemed to be uncollectible.

A5. Collection of previously written off receivables will resort to 2 entries. First, reversal of the original entry we made during the write off. So we debit Accounts receivable and credit allowance for doubtful accounts in the amount of $2,500. Next is to record the cash we received from the customer. So debit cash and credit accounts receivable in the same amount of $2,500.

B. To record the bad debt expense, we need to compute first the ending balance of the accounts receivable.

Beg $275,000 plus sales on account of $180,000 less collection $125,000, sales return of $20,000 and write off $35,000 = $275,000.

Bad debts is 10% of the Accounts receivable, so $275,000 x 10% = $27,500

Entry:

Dr bad debt expense $27,500

Cr allowance for doubtful accounts $27,500

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4 years ago