Answer: Please see the analysis below
Explanation: The following are the financial statement effects
Assets Liabilities Stockholders Equity Income Expense
Write-off of $10,000 - - Nil Nil Nil
Bad debt of $8,000 - + - - +
- Write-off of customer balances of $10,000 would lead to reduction in assets and also reduction in liabilities (since the provision for doubtful accounts reports to liabilities but mapped to the accounts receivable to show the net amount). Here, we have assumed that there is an existing allowance for doubtful accounts that has $10,000 buffer or more. If the write-off was not initially provided for, it would hit expense by debiting bad debt expense and crediting the accounts receivable. <em>Its effects are therefore decrease in asset, decrease in liabilities.</em>
- Bad debt expense of $8,000 affects the expense and the liabilities/assets. Journal entries to record the bad debt expense is Debit Bad debt expense $8,000; Credit Allowance for doubtful accounts $8,000. So, it affects the expense, liabilities and ultimately the assets (allowance for doubtful accounts is a contra to the accounts receivable). <em>Its effects are increase in expense, increase in liabilities, decrease in stockholders equity, decrease in income and decrease in assets</em>
It is generally uncommon for people to decide a place of residence based on <u>E. credit score </u>
When people look for places to stay, they think about their:
- Lifestyle and what house it suits that
- Their needs from a place
- Their values and whether the place would support them
- Attitudes towards what kind of place they should live
People only think about the credit score when it comes to paying the rent of the place or being able to buy it. It is generally not a factor when selecting a place of residence initially.
In conclusion, most people do not select residence based on credit score.
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I will prefer to know the OPERATING INCOME. Operating income refers to the operating profits of a company before the taxes and interests are removed. It reflects the true situation of the company and can be used to analyse if a company is making profits from its manufacturing process or not. The net income of a company has some expenses and costs that do not reflect the core operations of the company.
Answer:
$84,000
Explanation:
The computation of August cash disbursement for manufacturing overhead is seen below;
Direct labor hour
5,600
Variable overhead per hour
$5.4
Variable manufacturing overhead
$30,240
Fixed manufacturing overhead
$69,440
Total manufacturing overhead
$99,680
Less: Depreciation
$15,680
Cash disbursement for manufacturing overhead
$84,000
Answer:
At the end of year 4 (one year before the first cash flow)
Explanation:
According to the present value of perpetuity concept here we divided the predicted cash flows by the rate of that period by calculating this it provides the present value that is prior to the cash flow now if we want for more years so we should have to discount over that time period
Since in the given situation the starting of the cash flows is from the ending of year 5 therefore the timeline would be at the closing of year 4 i..e one year prior to the first cash flow
