Answer:
So project two is better because it will increase the wealth of Chandler Tire by $ 18,598.33 more than Project 1
Explanation:
<em>To determine which project to be selected, we will compute the present value (PV) of the two projects and select the one with a higher PV.</em>
Present value is the today worth of the future cash inflows from a project. The higher the present value the more wealth is been created. So a project with a higher PV is better if two are been compared.
So when comparing two projects, the one with a higher PV is better.
<em>PV of Poject 1 </em>
PV = 52,000 × 1-(1.015)^(-6)
$196,793.10
<em>PV of Project 2</em>
PV = 48,000 × 1- (1.015)^(-8)
$215,391.43
So project two is better because it will increase the wealth of Chandler Tire by $ 18,598.33 more than Project 1
Answer:
D. the routine service.
Explanation:
Single cost driver rate: It is a cost assigned to each unit of cost driver activity directly. Cost driver also influence other business activity and effect the total cost incurred.
In the given case, Business offer both routine and specialized service, as we know single cost driver influence driver directly, therefore, cost driver of specialized service will overprice the routine service.
People who make goods and services are called PRODUCERS.
They are called producers because they produce the goods and services needed by the consumers.
Consumers are people who requires the goods and services provided by the producers.
Answer:
Allowance for uncollectible accounts
Explanation:
This account is a contra asset account which says that the account receivable amount is not collected in near future
It is shown in the asset side of the balance sheet
Assets side
Current Assets
Accounts receivable XXXXX
Less: Allowance for doubtful debts (XXXXX)
Net accounts receivable XXXXX
It is an estimated amount which is not to be paid by the customer in respect to goods delivered to them
The journal entry would be
Bad debt expense A/c Dr XXXXX
To Allowance for uncollectible accounts A/c XXXXX
(Being the uncollected amount is recorded)
