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leonid [27]
3 years ago
7

Use the following information to answer the next two questions: Q14 and Q15. The Cavallas Co. had the following balances in sele

cted accounts on 12/31/10. Balances in Selected Accounts: Account Debit Credit Accounts receivable 100,000 Allowance for doubtful accounts 1,000 Bad Debt Expense 0 Sales 500,000 Sales returns 50,000 14. The company estimates that 4% of Accounts Receivable will never be collected. The adjusting journal entry to record the estimate of bad debt expense is:
Business
1 answer:
Annette [7]3 years ago
3 0

Answer:

Debit bad debt with $4,000, and credit Accounts receivable also with $4,000.

Explanation:

New bad written off = Accounts receivable × 4% = $100,000 × 4% = $4,000

The journal entries will be as follows:

<u>Details                                            Dr ($)                 Cr ($)          </u>

Bad debt                                        4,000

Accounts receivable                                                4,000

<u><em>Being a bad written off the accounts receivable                      </em></u>

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A i think. Im not sure though.

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3 years ago
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For fixed-rate bonds it's important to realize that the value of the bond has a(n)-Select relationship to the level of interest
pogonyaev

Answer:

Answer is explained in the explanation section below.

Explanation:

It's necessary to remember that the value of fixed-rate bonds is inversely proportional to the level of interest rates. The value of the bond decreases as interest rates rise; moreover, the value of the bond rises as interest rates fall. A Bond with a lower coupon sells for less than its face value. When the going rate of interest is higher than the coupon rate, this condition arises. The value of the asset would increase over time. A higher coupon bond is one that sells for a higher price than its face value. When the going rate of interest is lower than the coupon rate, this condition arises. Its value will gradually decrease until it reaches its maturity value. A par value bond that sells at par, with a coupon rate equal to the current interest rate. The coupon is usually set at the going market rate on the day the bond is sold, so it sells at par at first.

Calculations:

C = Coupon Payments = $60 (Par Value x Coupon Rate)

n = number of years = 10

i = market rate or required yield = 7% = 0.007

K = number of coupon payments in 1 year = 1

P = value at maturity or par value = 1000

Present value of ordinary annuity formula:

Bond Price = C/k * [\frac{1 - \frac{1}{(1 + \frac{i}{k})^{nk}  } }{\frac{i}{k} } ] + \frac{P}{(1 + \frac{i}{k})^{nk}  }

Just plug in the values and you will get:

Bond Price = 60 x 7.02 + 508.35

Bond Price = 421.41 508.35

Bond Price = $929.76

Similarly,

Data:

C = Coupon Payments = $60 (Par Value x Coupon Rate)

n = number of years = 10

i = market rate or required yield = 7% = 0.007

K = number of coupon payments in 1 year = 2

P = value at maturity or par value = 1000

Present value of ordinary annuity formula:  

Bond Price = C/k * [\frac{1 - \frac{1}{(1 + \frac{i}{k})^{nk}  } }{\frac{i}{k} } ] + \frac{P}{(1 + \frac{i}{k})^{nk}  }

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Bond Price = 30 x 14.21 + 502.57

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8 0
2 years ago
Establishing the structure of a portfolio to meet specific financial goals is called:
photoshop1234 [79]

Answer:

A I believe

Explanation:

4 0
3 years ago
For the next 6 years, you plan to make equal quarterly deposits of $600.00 into an accountpaying 8% compounded quarterly. How mu
viva [34]

Answer:

Final Value= $18,253.12

Explanation:

Giving the following information:

For the next 6 years, you plan to make equal quarterly deposits of $600.00 into an account paying 8% compounded quarterly.

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FV= {A*[(1+i)^n-1]}/i

A= quarterly deposit= 600

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8 0
3 years ago
Which of the following best describes the relationship between the computed mean and the actual​ mean? A. The computed mean is n
Alex777 [14]

Answer:

The computed mean is not close to the actual mean because the difference between the means is more than 5%.

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Mean in statistics is the average used to get the central tendency of the data in the problem. This is the actual mean that we get by adding all the data points of a population and the dividing it is using the total. The computed mean is a guess or assumption of the actual mean, and it can be close to the actual mean or not.  

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