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Reil [10]
3 years ago
11

In 2022 the Cheyenne Corp. had net credit sales of $870000. On January 1, 2022, the Allowance for Doubtful Accounts had a credit

balance of $21600. During 2022, $32700 of uncollectible accounts receivable were written off. Past experience indicates that the allowance should be 5% of the balance in receivables (percentage-of-receivables basis). If the accounts receivable balance at December 31 was $227000, what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2022
Business
1 answer:
OleMash [197]3 years ago
5 0

Answer:

$22,450

Explanation:

Bad debt Expense will be calculated using the percentage of debt loss. The expense will be calculated using the account receivable balance

Beginning bal. of Allowance for Doubtful Accounts ($21,600)

- Uncollectible Accounts Receivable written off        <u>$32,700</u>

Adjustment of Allowance for Doubtful Accounts       <u>$11,100 </u>

Accounts receivable balance at December 31           $11,350

+ Adjustment of Allowance for Doubtful Accounts    $11,100 Adjustment to Allowance for Doubtful Accounts     $22,450

at December 31, 2022

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Answer:

A rational decision

Explanation:

Marginal decision involves using more than or less than what you have by comparing the cost and benefits. Marginal cost is the additional cost as a result of making a different decision while the marginal benefit is the additional benefit as a result of making a different choice.  A rational decision is a decision in which the marginal benefits as a result of taking that decision is greater or equal to the marginal cost of that decision.

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4 years ago
A firm organized on the basis of retail customers and wholesale customers utilizes the concept of departmentalization by
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Customer

Explanation:

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To handle them in a better way each group of customers needs different tactics and strategies. Therefore, customer deparmentalization serves the purpose of the firm that is organized on the basis of retail customers and wholesame customers.

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4 years ago
1. Purposeful behavior suggests that: A. everyone will make identical choices. B. resource availability exceeds economic wants.
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3 years ago
You need some money today and the only friend you have that has any is your ‘miserly' friend. He agrees to loan you the money yo
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Answer:

B. The total interest = $4.35

Explanation:

The first question to answer, is  what is the present value of the annuity of the loan and then based on that the total interest can be calculated.

<h2>Present value of annuity= A x [(1-(1+r)-n)/r]*(1+r) </h2>

Where the A represents Annuity = or $20

The r represents the rate or 1.5%

and the n represents the number of periods which is 6 months

Calculating the value =

= 20 x [(1-1.015^-6)/0.015]*1.015

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Now that the loan amount is known, the Total Interest can be calculated as follows

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= 20 x 6 -115.65

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3 years ago
The following data were reported by a corporation: 20,000 15,000 3,000the number of outstanding shares is:
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Outstanding shares will be 12,000 shares.

These are calculated as follows:

Here the number of shares are as follows;

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To know more about outstanding shares here:

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8 0
2 years ago
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