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Kitty [74]
3 years ago
15

An estimate based on an analysis of receivables shows that $790 of accounts receivables are uncollectible. the allowance for dou

btful accounts has a debit balance of $120. the adjusting entry at the end of the year will include a credit to allowance for doubtful accounts in the amount of:
Business
1 answer:
erastovalidia [21]3 years ago
7 0

Answer:

The  adjusting entry at the end of the year will include a credit to allowance for doubtful accounts in the amount of $910.

Explanation:

Allowance for Doubtful Accounts balance should be Credit balance, Since we have $120 debit balance and want to create $790 Allowance for Doubtful Accounts credit balance we have to credit Allowance for Doubtful Accounts by ($790 + $120 = $910) to get Allowance for Doubtful Accounts $790 Credit balance.

Therefore, The  adjusting entry at the end of the year will include a credit to allowance for doubtful accounts in the amount of $910.

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An amount of $2,500 is deposited in a savings account that earns 2.5% interest. Which is the future value
Lynna [10]

Answer:

$3,208

Explanation:

The computation of the future value is shown below;

As we know that

Future valie = Present value × (1 + rate of interest)^number of years

where

Present value is $2,500

Rate of interest = 2.5% ÷ 4 = 0.625%

And, the time period is = 10  × 4 = 40

So, the future value is

= $2,500 × (1 + 0.625%)^40

= $3,208

5 0
3 years ago
Grecian Tile Manufacturing of Athens, Georgia, borrows $1,500,000 at LIBOR plus a lending margin of 1.25 percent per annum on a
shtirl [24]

Answer: 92812.50

Explanation:

The following information can be derived from the question:

Loan principal = $1,500,000

LIBOR for 1st 6 months = 4.50%

LIBOR for last 6 months = 5.375%

Lending margin per annum = 1.25%

The interest will then be:

= 1,500,000 × [(4.50% + 1.25%)/2] + 1,500,000 × [(5.375% + 1.25%)/2]

= 1,500,000 × [(0.045 + 0.0125)/2] + 1,500,000 × [(0.05375 + 0.0125)/2]

= 92,812.50

Therefore, the interest is 92812.50.

8 0
3 years ago
Franklin Company deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of b
OlgaM077 [116]

Answer:

$14,837

Explanation:

Calculation for what The adjusted cash balance should be

Bank balance$14,237

Add Deposit in transit$4,500

Less Outstanding checks ($3,900)

Adjusted bank balance$14,837

($14,237+$4,500-$3,900)

Book balance$13,162

Less Bank service fees ($50)

Add Note collected $1,725

Adjusted book balance$14,837

($13,162-$50+$1,725)

Therefore The adjusted cash balance should be:

$14,837

8 0
3 years ago
People want information communicated quickly and clearly. To make your writing more concise and understandable, avoid flabby exp
mash [69]

Answer:

The best revision for the following sentence is:

B) We have identified a problem with our expense sheet, but we will solve it.

Explanation:

In e-mail, letters, messages, memos, and other business documents intended for a busy audience who appreciates getting the information they need quickly and easily, replacing a phrases with a word  in a formal tone, detracting from adding meaning: "we have identified" instead of: "I am sending" or "we need to inform you", keeping the sentence just as it is with certain rhythm and concise.

Otherwise in option 1. I am sending you this letter to inform you that we have experienced an unexpected surprise within our expense sheet, but we are positively certain we will solve it.

The sentence has a redundant pair:  "send" and "inform", it is “wordy,” and includes irrelevant “fillers” as "unexpected" that makes it lack of conciseness in the substantive information, not getting to the point promptly. I also includes passive voice which is not a grammatical error, but it often leads to using more words than necessary frustrating or confusing the audience; and it has prepositional phrases overuse: "that", within", "but" making this sentence clunky and unclear.

In option A) We need to inform you that we have experienced an unexpected surprise with our expense sheet, but we are midway to an end result.

The sentence has unnecessary modifiers: "unexpected" and "end", and passive voice again.

In option C) I am sending you this letter to inform you that we have a problem with our expense sheet, but we are positively certain we have a solution.

The sentence has unnecessary modifier: "positively".

6 0
3 years ago
A firm has an issue of preferred stock outstanding that has a stated annual dividend of $4. The required return on the preferred
snow_lady [41]

Answer:

$64

Explanation:

A firm has an annual dividend of $4

The required return is 16%

Therefore the value of the preferred stock can be calculated as follows

= 16/100 × 4

= 0.16 × 4

= 0.64 ×100

= $64

Hence the value of the preferred stock is $64

4 0
3 years ago
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