Answer:
Dr Bad Debt Expense $18,450
Cr Allowance for Doubtful Accounts
$18,450
Explanation:
Preparation of the appropiate adjusting journal entry that the company should make at the end of the current year to record its estimated bad debts expense
Dr Bad Debt Expense $18,450
Cr Allowance for Doubtful Accounts
$18,450
($18,000+Debit balance$450)
(Being to record estimated bad debts expense)
Answer:
Marilyn take a good decision.
Explanation:
Marilyn refuses to pay Carl because Marilyn did not sell any goods due to its bad quality so Marilyn earn no money and is unable to pay Carl. Marilyn will be able to pay Carl if the goods are sold and she has the money but when there is no sale at all, Marilyn is unable to pay for the goods on the due time. Marilyn should return the goods to Nigel instead of paying money for it because these goods are useless and nobody will it at all.
Answer:
Early settlement Discount: It is offered to customer to encourage them to pay earlier than the payment date.
Bulk Discount: If the customer buys over a certain quantity, he will get a discount.
Answer:
Basis risk for the future contract is 0.65%
Explanation:
Basis risk is the difference in spot price and future price of an hedged asset. It is the difference between the price price of an hedged asset and price of the asset serving as the hedge.
Basis risk = Futures price of contract − Spot price of hedged asset
Basis Risk = Future IMM index - Spot IMM index
Basis risk = 95.75% - 95.10%
Basis risk = 0.65%
