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pickupchik [31]
3 years ago
12

Wilton, Inc. had net sales in 2017 of $1,400,000. At December 31, 2017, before adjusting entries, the balances in selected accou

nts were Accounts Receivable $250,000 debit, and Allowance for Doubtful Accounts $2,400 credit. If Wilton estimates that 8% of its receivables will prove to be uncollectible. Prepare the December 31, 2017, journal entry to record bad debt expense.
Business
1 answer:
Sergeeva-Olga [200]3 years ago
5 0

Answer:

See explanation section.

Explanation:

December 31, 2017

Bad debt expense                        Debit      = $17,600

Allowance for Doubtful Account Credit     =  $17,600

To record the bad debt expense

Calculation: Bad debt expense = $250,000 × 8% = $20,000. However, we cannot take this amount because Allowance for Doubtful Account is a positive contra entry, which has a $2,400 credit balance. Therefore, we have to deduct $2,400 from $20,000 to get the actual bad debt expense.

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Joss is a marketing consultant. Iris and Daphne are potential customers interested in commissioning Joss to undertake a market s
posledela

Answer: d. both Iris and Daphne will want to purchase Joss's services but Joss will not be willing to undertake the job.

Explanation:

Iris will want Joss's services but they will be unable to afford them as Iris is only willing to pay $500 whereas Joss wants $1,200 for the job.

The same goes for Daphne who is only willing to pay $800.

Both of them will therefore want to hire Joss but will be unable to.

Joss could however charge both of them their willingness to pay and then sum the cash up and give them both the research whilst still making a profit.

6 0
2 years ago
Select the items that describe what happens at the equilibrium price. Producers supply the exact goods that consumers buy. Consu
Mekhanik [1.2K]

The items that describes what happens at the equilibrium price are:


Producers supply the exact goods that consumers buy.

Consumers have enough goods, at the given price.

Producers used their resources efficiently.

Equilibrium pricing is when the items demanded match the items supplied. When this happens, the demand and good available equal each other, hence, equilibrium. The pricing is exactly where it should be for consumers to want and purchase the good or service.

6 0
3 years ago
Read 2 more answers
Kalons, Inc. is a U.S.-based MNC that frequently imports raw materials from Canada. Kalons is typically invoiced for these goods
pantera1 [17]

Answer:

The correct answer is C) purchase Canadian dollar put options.

Explanation:

A sale option (or put option) gives its holder the right - but not the obligation - to sell an asset at a predetermined price until a specific date. The seller of the option to sell has the obligation to buy the underlying asset if the holder of the option (buyer of the right to sell) decides to exercise his right.

The purchase of put options is used as hedging, when price falls are anticipated in shares that are held, since by means of the purchase of Put the price is established from which money is earned. If the stock falls below that price, the investor earns money. If the share price falls, the profits obtained with the sale option compensate in whole or in part for the loss experienced by said fall.

Losses are limited to the premium (price paid for the purchase of the sale option). Earnings increase as the share price falls in the market.

5 0
2 years ago
When current real output exceeds potential real output, the federal reserve will _____ interest rates in an effort to fight ____
Serggg [28]
<span>When current real output exceeds potential real output, the federal reserve will increase interest rates in an effort to fight inflation.
Fed stands for federal reserve system and it refers to the </span>central banking system of the United States, which  was created on December 23, 1913.<span> There are twelve regional banks that are included in the Federal Reserve System.</span>
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3 years ago
Laura is forecasting the time and cost of developing an intranet for a new customer. Her department has completed six such intra
madam [21]

Answer:

Learning curve

Explanation:

Reference is made to the time and cost with respect to the fact that the proposed system is about the same size as others. Learning curve theory teaches to identify cost and time in relation to specific jobs

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