Answer:
Option D. management estimates the amount of uncollectibles
Explanation:
When the company estimates the bad debts, reflects it in the balance sheet through a Debit entry in the Bad Debt Expenses againts the asset account Allowance for Doubtful Accounts as a Credit.
When the bad debt are confirm as uncollectible the loss is reflected in the Account Receivable as a Credit with the correspondent debit entry in the Allowance for Doubtful Accounts.
I'm pretty sure it's "<span>She hasn't developed a targeted niche."
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Answer:Net Income = $68,730 ; Operating cash flow=$181,730
Explanation:
Gross sales $865,000
Less:
Cost of good sold $455,000
selling Expenses $210,000
Total $200,000
Interest on notes $200,00 X 4% = 8,000
Depreciation $105,000
EBT $87,000
( $865,000- $455,000- $210,000- $8,000 - $105,000 )
less tax at 21% $18,270
(87,000 x 0.21)
Net Income $68,730
(87,000 - 18,270)
b) Operating cash flow = Net income + depreciation + interest
$68,730 + $105,000 + $8,000 =$181,730
Answer:
LJM Corporation
1. The Maximum price that Patty Division should be willing to pay for the filters is: $45.
2. Minimum price that Shay Division should be willing to accept is: $52.
Explanation:
a) Data and Calculations:
Shay Division Patty Division
Costs:
Variable costs $16
Fixed costs 20
Sales/purchase price 52 $45
Capacity/requirement 20,000 8,000
Maximum price that Patty Division should be willing to pay for the filters is: $45.
Minimum price that Shay Division should be willing to accept is: $52.
b) The minimum transfer price should be determined based on the variable costs and the opportunity costs. The opportunity cost for Shay Division is $36 ($52 - $16). For Patty Division, the maximum price it should be willing to pay is the opportunity cost, which is the price Patty pays when it buys the filters from the market.
