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3 years ago

Two methods of estimating uncollectible receivables are? ________.

1 answer:

4 0

The answer is an aging-of-accounts-receivable method and the percent-of-sales method. More often than not, when a credit alteration is gone into the Allowance account, a relating charge sum is gone into Bad Debts Expense. The maturing technique happens by sorting an organization's records receivable as per the dates of these unpaid solicitations.

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Page Company makes 30% of its sales for cash and 70% on account. 60% of the credit sales are collected in the month of sale, 25%

kondaur [170]

Answer:

$36,230

Explanation:

Month 1 Month 2 Month 3 Month 4

60,000 70,000 50,000 30,000

Calculation for receipts in Month 4:

9000 30% cash in the same month(30000*30%)

12600 60% credit in the same month (30000*70%*60%

8750 25% in month following sales (50000*70%*25%)

5880 12% second month following sales (70000*70%*12%)

36,230

I hope I made myself clear buddy.

Best of Luck.

6 0

3 years ago

The preferred stock of a company pays a $2.75 quarterly dividends. If the preferred stockholders' required return is 7.25% for t

Sonbull [250]

Answer:

$151.72

Explanation:

Quarterly dividends of preferred stock = $2.75

Annual dividend of preferred stock = 4 * Quarterly dividend

Annual dividend of preferred stock = 4 * $2.75

Annual dividend of preferred stock = $11

Required return = 7.25% = 0.0725

Return = Dividend / Current price

0.0725 = $11 / Current price

Current price = $11 / 0.0725

Current price = 151.724138

Current price = $151.72

So, the preferred stock should sell for $151.72.

4 0

3 years ago

What two project dimensions are components of project performance?

Allisa [31]

The answer is "Scope and quality" are two project dimensions which are components of project performance.

Scope refers to the sum of products, services, and results which are provided as a project and if we define this more simply, it is the size of a project or task. Quality is defined as how well the segments or components satisfy the project requirements or necessities.

5 0

4 years ago

Read 2 more answers

Comfort chair company manufacturers a standard recliner. During February, the firm's Assembly Department started production of 7

bonufazy [111]

Answer:

1) total equivalent units:

materials = 73,000

conversion = 81,500

2) costs assigned to ending WIP:

materials = $23,013.70

conversion = $27,288.32

Explanation:

beginning WIP 78,000 + 10,000 - 73,000 = 15,000

materials = 100% (0 added during the period)

conversion = 30% (70% added during the period, 10,500 EU)

units started 73,000

units finished 78,000

units started and finished = 63,000

ending WIP 10,000

materials = 100%

conversion = 80%, 8,000 EU

Beginning WIP

Materials $24,000

Conversion $35,000

Costs added during the period:

Materials $168,000

Conversion $278,000

total equivalent units:

materials = 73,000

conversion = 10,500 + 63,000 + 8,000 = 81,500

cost per EU:

Materials = $168,000 / 73,000 = $2.30137

Conversion = $278,000 / 81,500 = $3.41104

costs assigned to ending WIP:

materials = 10,000 x $2.30137 = $23,013.70

conversion = 8,000 x $3.41104 = $27,288.32

5 0

3 years ago

2. Fargo Corporation distributes property (basis of $260,000 and fair market value of $310,000) to a shareholder. Fargo Corporat

earnstyle [38]

Answer:

The distribution by Fargo corporations has the following tax consequences

The corporation has distributed an appreciated property( that on its own makes it liable for tax)
The corporation must recognize the gains or losses made on the distribution as if the corporation was selling the property to the shareholder.
Apply capital gains tax on the gains or losses
capital gain = $310000-$260000 =$50000
Apply any annual exclusion and multiply by the Capital Gains Tax to arrive at Taxable Capital Gain to be included in incomes

The shareholder will recognize dividend received in the market value and will be subject to exemptions if applicable.

Explanation:

8 0

3 years ago