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Trava [24]
3 years ago
13

WLC has outstanding accounts receivable totaling $6.5 million as of December 31 and sales on credit during the year of $24 milli

on. There is also a credit balance of $12,000 in the allowance for doubtful accounts. If the company estimates that 8% of its outstanding receivables will be uncollectible, what will be the amount of bad debt expense recognized for the year?a. $ 532,000.b. $ 520,000.c. $1,920,000.d. $ 508,000.
Business
1 answer:
laila [671]3 years ago
3 0

Answer:

$508,000

Explanation:

Outstanding Receivables as on Dec 31 = $6,500,000

    Required uncollectible receivables = 8% of $6,500,000 = $520,000

    Less Opening allowance for doubtful debts                         <u>$12,000 </u>

    Allowance to be recognized this year                                  <u>$508,000  </u>

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This is an example of Personal Selling.

<h3>Personal Selling:</h3>

It is a technique in which a store has various salesperson who guides their customers by using their interpersonal skills. It is a face to face selling technique.

In this scenario Damian helps his customer to make a buy decision about an eye shadow palette. He guides his customer and tries to satisfy him with his marketing skills.

The correct answer is Personal Selling

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6 0
2 years ago
Factory Overhead Rates, Entries, and Account Balance Eclipse Solar Company operates two factories. The company applies factory o
Anvisha [2.4K]

Answer:

Predetermined manufacturing overhead rate= $14.8 per machine hour

Explanation:

Giving the following information:

Factory 1

Estimated factory overhead= $18,500,000  

Estimated machine hours for year 1,250,000

T<u>o calculate the predetermined manufacturing overhead rate we need to use the following formula:</u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 18,500,000/1,250,000

Predetermined manufacturing overhead rate= $14.8 per machine hour

8 0
2 years ago
Return on assets is equal to:________
Sunny_sXe [5.5K]

Return on assets is equal to<u> </u><u>a.</u><u> profit margin times asset turnover.</u>

An asset is a resource with a financial fee that a man or woman, enterprise, or country owns or controls with the expectancy that it will provide a destiny benefit. belongings are said on an employer's stability sheet. They're offered or created to increase a firm's fee or gain the firm's operations.

Despite all that in mind, an automobile is an asset due to the fact you may speedy advertise and convert it to coins, albeit for less than what you paid. That alone makes it an asset via definition. It is those added expenses and the steady decline in cost that make a car a depreciating asset.

Suitable properties are gadgets you could spend money on a good way to produce earnings for you like stocks, rental homes, actual property crowdfunding initiatives, and a web enterprise. these also can respect in cost overtime except producing money for you.

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6 0
2 years ago
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Shkiper50 [21]

Answer:

a. True

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Hence, the given statement is true

Therefore the correct option is a. True

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2 years ago
Which of the following is not a category of electrical burns?
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D, thermal contact would just cause a regular burn, not an electrical one.
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