Answer:
$3,355
Explanation:
Accounts receivables = $ 352,000
Debit Allowance for uncollectible accounts = 630
Net Sales = $797,000
The company estimates that 0.5% of net credit sales are uncollectible
Estimates of uncollectible receivables
= 0.5% × $797,000
=$3985
This is the total amount to be recognized at the end of the year as Bad Debts Expense. Since a debit of $630 has been recognized already, additional debit required
= 3985 - 630
= $3,355
The amount to be debited to Bad Debts Expense when the year-end adjusting entry is prepared is $3,355.
Answer: Option A
Explanation: The given case relates to the problem of dissolution of partnership and not the dissolution of firm.
In case of dissolution of partnership only the existing agreement among the partners ceases to exist due to leaving or joining of new partners and a new agreement takes place among the existing partners.
In such a case, the account balance of the partner remains same. It changes in case of dissolution of firm.
Hence the correct option is A.
This is a <u>false</u> statement.
<u>Explanation</u>:
The employees of Mauve Company are permitted to use the copying machine in the office for personal purpose occasionally. The copying machine is placed in the room where the higher officials work. So the use of the machine was limited. It is difficult for the low wage employees and employee working in warehouse to use the copying machine as the machine is placed in high official’s room. So the low wage employees never use the copying machine. The use of the copying machine may not be excluded from gross income as the benefit is unfair.
Answer:
Cash Flow Probability Expected value
$3,840 0.4 $1,536
$5,280 0.2 $1,056
$8,110 0.3 $2,433
<u>$10,370 0.1 $1,307</u>
total 1 $6,332
a) the expected value of each yearly cash flow is $6,332
b) the present value of the expected cash flows = $6,332 x 3.5172 (PV annuity factor, 13%, 5 periods) = $22,270.91 ≈ $22,271
the NPV = -$24,500 + $22,271 = -$2,229
c) Debby should not buy the equipment since the project's NPV is negative.
