Answer:
Classification of Economic Resources
Explanation:
Classical economics recognizes three categories of resources, also referred to as factors of production: land, labor, and capital.
Answer:
92.86%
Explanation:
Debt-to-income ratio is a comparison or personal debts against income. It is used to assess an individual ability to accommodate more debts.
The formula for for calculating Debt to income is
Debt to income is <u> Total of Monthly Debt Payments </u>
Gross Monthly Income
For Affan, Total debts are $450 + $375 + $50+ $100 =$ 975
Gross income is not given , we use net income which is $1,050
Debt to income ration = $975/$1050
= 0.92857 x 100
= 92.86%
Answer:
Debit Bad debt expense $15,120
Credit Allowance for doubtful debt $15,120
Being entries to record estimated bad debts
Explanation:
When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.
To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.
Where a debit that had previously been determined to have gone bad gets settled, debit cash and credit bad debt expense.
Account receivables balance as at year end
= $257,000 - $131,000
= $126,000
Allowance for doubtful debt = 12% * $126,000
= $15,120
Answer:
14.48%
Explanation:
The ARR is the quotient between the average income of a project over his investment cost.
The income will consider depreication and taxes.
We are given with the net income so, we should assueme are already included.
Frist step, calculate average net income.
$ 1,864,300,
+ $ 1,917 ,600
+ $ 1,886,000
<u>+ $ 1,339,500 </u>
$ 7,007,400 Total return
Now we divide by 4 because there is a total of 4 years
$ 7,007,400 / 4 = $ 1,751,850 Average income
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<u>Now we calculate the ARR</u>
average net income/ investment
1,751,850 / 12,100,000 = 0.144780992 = 14.48%
