Answer:
Debit Bad Debts Expense $12,475
Credit Allowance for Doubtful Accounts $12,475
Explanation:
Calculation for estimated bad debts expense:
Explanation
Accounts receivable * Sales uncollectible
$445,000×0.025
=11,125
Hence:
11,125 +Allowance for Doubtful Accounts 1,350
=$12,475
Therefore the estimated bad debt will be:
Debit Bad Debts Expense $12,475
Credit Allowance for Doubtful Accounts $12,475
Answer:
Needs : Frappuccino before work each day and winter coat
Wants: monthly loan payment and paying extra on the principal loan amount
Saving: rent on your apartment
Answer:
Different organizations face different constraints and rules. Not-for-profit organizations have more ways to accumulate capital (such as issuing stocks and bonds) and benefit from economies of scale. But small firms do not have to pay certain kinds of taxes.
Explanation:
Non profit organization such as NGOs have more ways to accumulate capital through international support as a result of the nature of task they are carrying out. International organization that supports NGOs are United Nation, UNICEF, WHO, IMF and world bank among others.
while small firms does not pay certain kind of taxes as a result of the nature of type of business they are into, this limits or reduces their tax payments
Answer:
Explanation:
1)Use spreadsheet for the required computations. Enter values and formulas in the spreadsheet as shown in the image below.
2)The obtained result is provided below.
Answer:
Sell the put option. The put option is better and advantageous .
Explanation:
The call option is trading far below the strike price and poses risk. The price may not go up to $1.25 and hence not advisable. The put option is better as we stand to make a profit margin ($1.15 / Euro) if it sells the put at he strike price immediately. Given that the difference is high, it is unlikely that the price will move against us and we shall exercise the option as soon as the margin starts reducing.
