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Dafna11 [192]
3 years ago
9

Yates Co. uses the allowance method to account for bad debts. At the end of the period, Yate's unadjusted trial balance shows an

accounts receivable balance of $10,000; allowance for doubtful accounts balance of $400 (credit); and sales of $500,000. Based on history, Yates estimates that bad debts will be 1% of sales. The entry to record estimated bad debts will include a debit to bad debts expense in the amount of:
Business
1 answer:
Sedbober [7]3 years ago
8 0

Answer:

The bad debts would be debited with $5,000.

Explanation:

The bad debts under the allowance method is calculated by either as a percentage of accounts receivables or as a percentage of sales.

Percentage of Sales method:

In the percentage of sales method the allowance is calculated as below:

Allowance for doubtful debts = Sales * Percentage for doubtful debts

Allowance for doubtful debts = $500,000 * 1% = $5,000

Now always remember that this amount will be used only and their is no need to include the allowance for doubtful accounts balance.

Whereas on the other hand, in the percentage of accounts receivable method the allowances are included in the amount calculated.

The entry would be:

Dr Bad Debt Expense $5000

Cr Allowance for Doubtful Debts $5000

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True or False:
Vaselesa [24]

The question given is incorrect. Here is the correct version obtained from google:

Lamont is quick and decisive. He makes most decisions by himself, issues orders, and expects his subordinates to follow them without question. Lamont's behavior is an example of the free-rein style of leadership.

Answer:

False

Explanation:

A leadership style is a leader's method of providing direction, implementing plans, and motivating people

There are basically three types of leadership-decision making; these include: Authoritarian, the Democratic and the Free-rein style (Laissez-Faire style).

The free-rein style of leadership is a type of leadership style in which leaders are uninvolved and allow group members to make the decisions. In this type of leadership style, managers set objectives and employees are free to do whatever is appropriate to accomplish those objectives.

Authoritarian leadership styles follows the vision of those that are in control, and may not necessarily be compatible with those that are being led. These types of leaders only create a distinct professional relationship. To them,  direct supervision is been regarded as fundamental in maintaining a successful environment and followership.

In the  democratic leadership style , the leader shares the decision-making abilities with group members by promoting the interests of the group members and by practicing social equality.

From the above explanations of the styles of leadership, it can be seen that Lamont demonstrates the Authoritarian style (not the free-rein style of leadership ), since he makes most decisions by himself, issues orders, and expects his subordinates to follow them without question.

8 0
4 years ago
Read 2 more answers
Jean has created a self improvement plan so she can meet her goal of getting a raise in six months. Which of these is an element
Anna007 [38]
It has to be C most likely I just think it is because it shows how the progress is rising
4 0
4 years ago
Read 2 more answers
The law recognizes each​ person's right to live his or her life without being subjected to unwarranted and undesired publicity.
Margarita [4]

Answer:

Privacy

Explanation:

The law gives right to every person to their own privacy i.e. for one to live without being subjected to unwarranted and undesired publicity. The right to privacy actively deals with issue surrounding the personal matters of an individual and the right for them to be let alone.

A violation of this right is called the tort of invasion of the right to privacy. The tort of invasion of the right to privacy occurs when an individual sues another person who he/she believes has trespassed on his right to privacy. This trespass might come in form of disclose of their private information, or using the person`s name and associated things for another person`s gain without their consent.

4 0
3 years ago
Lohn Corporation is expected to pay the following dividends over the next four years: $12, $10, $9, and $4. Afterward, the compa
Andrej [43]

Answer:

Price of the stock today = $53.14

Explanation:

given data

dividends year D1 = $12

dividends year D2 = $10

dividends year D3 = $9

dividends year D4 = $4

constant growth rate  = 6 percent

required return stock Kk = 15 percent

solution

we get here Price of the stock today that is

Price of the stock = \frac{D1}{(1+ke)^1}+\frac{D2}{(1+ke)^2}+\frac{D3}{(1+ke)^3}+\frac{D4}{(1+ke)^4}+\frac{P4}{(1+ke)^4}   .................1

here P4 =  \frac{D5}{ke-g}   .............2

and  where D5 = D4(1+g)    .............3

so here put value in equation 1

Price of the stock today  =  \frac{12}{(1+0.15)^1}+\frac{10}{(1+0.15)^2}+\frac{9}{(1+0.15)^3}+\frac{4}{(1+0.15)^4}+\frac{4(1.06)}{(0.15-0.06)(1+0.15)^4}    

Price of the stock today = 53.1368

Price of the stock today = $53.14

5 0
3 years ago
Manny and Irene will be retiring in fifteen years and would like to buy a Mexican villa. The villa costs​ $500,000 today, and ho
ki77a [65]

Answer:

Annual deposit= $37,714.37

Explanation:

Giving the following information:

The villa costs​ $500,000 today, and housing prices in Mexico are expected to increase by​ 6% per year. Manny and Irene want to make fifteen equal annual payments into an​ account, starting​ today, so there will be enough money to purchase the villa in fifteen years.

The account earns​ 10% per​ year.

First, we need to calculate the final value of the house with the following formula.

FV= PV*(1+i)^n

FV= 500,000*(1.06^15)=$1,198,279.1

Now, we can calculate the annual payments required:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

Isolating A:

A= (FV*i)/{[(1+i)^n]-1}

A= (1,198,279.1*0.10)/[(1.10^15)-1]

A= $37,714.37

6 0
4 years ago
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