Answer:
Allowance for Doubtful Accounts 100 Accounts Receivable 100
Explanation:
The allowance method first estimates an allowance for doubtful debts.When the company receives the actual figure of the amount that have gone wrong, it writes off the trade receivable and utilizes the allowance provided for
<u>When allowance is estimated </u>
Bad Debts (debit)
Allowance for doubtful debts (credit)
<u>When the actual figure of the amount that have gone wrong is obtained</u>
Allowance for doubtful debts (debit)
Account Receivable (credit)
Answer:
$1,025.299
Explanation:
The formula for compound interest is
FV = PV × (1+r)^ n
Where Fv is the future value
Pv is the present value = $1000
r is interest rate = 1/2 % or 0.5% per year
n is five years
interest is compounded quarterly,
Interest per quarter = 0.5% /4 = 0.125% which is 0.00125
n will be 5 years x 4 quarters = 20 periods
Fv= $1000 x (1 +0.00125)^20
Fv =$1000 x(1.00125)^20
Fv= $1000 x 1.025299
Fv = $1,025.299
Answer:
study when the hourly rate is below or equal to $20
Explanation:
Cosidering the economic principles of opportnity cost Alexandra will only study that extra time if the loss wages are less or equal to $20 dollars
as a higher hourly rate will make the $20 dollar she consider the change in grade worth it to leave a net loss after considering the implicit cost of the test
Answer:
The correct answer is (B) Buy euro at $1.50/€, buy £ at €1.25/£, sell £ at $2/£
Explanation:
The dollar- euro exchange rate is quoted as $1.50 = €1.00
the dollar-pound exchange rate is quoted at $2.00 = £1.00
To calculate the actual cross rate we use; S(euro divided by pounds) = S(dollar/pounds) ÷ S(dollar/euro).
Using symbols to denote this, we have S(€/£) = S($/£) / S($/€)
S(€/£) = S(2/1) ÷ S(1.50/1)
= (2 / 1.5)
= €1.33.
Consequently, from this result we now know that the euro is undervalued with respect to pounds under the cross rate being offered by the bank. This implies that you should first buy the euro, convert to pounds, and eventually convert back to dollars, this would enable you make money as an investor.