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expeople1 [14]
3 years ago
15

In the as/ad model, an expansionary monetary policy has the greatest effect on the price level when it

Business
1 answer:
Ugo [173]3 years ago
6 0
The answer that would best complete the given statement above would be option B. In the as/ad model, an expansionary monetary policy has the greatest effect on the price level when it <span> increases real income but not nominal income. Hope this answers your question.</span>
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Uncollectible accounts; allowance method estimating bad debts as percentage of net sales vs. direct write-off method [LO7-5, 7-6
worty [1.4K]

Answer:

1. Bad debt expense = $97,500

2. Accounts receivable written off = $109,500

3. Bad debt expense for 2021 = $109,500

Explanation:

Bad debts expense refers to an uncollectible accounts expense that occurs because goods or services are delivered on credit a company to a customer who did not paid the amount owed.

The questions can be answered as follows:

1. What is bad debt expense for 2021 as a percent of net credit sales?

Under this, bad debt can be calculated using the following formula:

Bad expense = Net credit sales * Estimated bad debt percentage ....... (1)

Where;

Net credit sales = $6,500,000

Estimated bad debt percentage = 1.50%

Substituting the values into equation (1), we have:

Bad debt expense = $6,500,000 * 1.50% = $97,500

2. Assume Ervin makes no other adjustment of bad debt expense during 2021. Determine the amount of accounts receivable written off during 2021.

This can be calculated using the following formula:

Accounts receivable written off = Beginning uncollectible balance + Bad debt expenses - Ending uncollectible balance ............ (2)

Where;

Beginning uncollectible balance = $62,000

Bad debt expenses = $97,500

Ending uncollectible balance = $50,000

Substituting the values into equation (2), we have:

Accounts receivable written off during 2021 = $62,000 + $97,500 - $50,000 = $109,500

3. If the company uses the direct write-off method, what would bad debt expense be for 2021?

Under the direct write-off method, the exact amount of uncollectible accounts as they are specifically identified are recorded.

Based on this explanation, bad debt expense for 2021 is equal to the accounts receivable written off during 2021 calculated in part 2 above. Therefore, we have:

Bad debt expense for 2021 = $109,500

7 0
3 years ago
The underground economy refers to used product sellers who sell in secondary markets. It is thought to make up ________ of the U
hammer [34]

The underground economy refers to used product sellers who sell in secondary markets. It is thought to make up 3-30% of the US gross national product.

Explanation:

Household production refers to goods and services people produce for themselves.

Underground economy refers to buying and selling of goods and services that are concealed from the government to avoid taxes or regulations or because the goods and services are illegal.

If you know how much the economy works for a brief time, it doesn't matter.

If one knows how goods and services are produced for a decade or further, it might be more important to omit domestic production and development in the underground economy.

7 0
3 years ago
I In your business, assets, and liabilities have historically varied with sales. Assets are usually 82 percent of sales, and lia
Butoxors [25]

Answer and Explanation:

<u>Computation table for Surplus amount:                                    </u>

<u>Particular                                           Current year  Future year </u>

Sales                                                       $168,000    $208,000

<u>Less</u><u>: Net Profit 11.99% of sales            $20,143.8    $24,932.2   </u>

Cost (sales - 11.99%)                            $147,856.8   $183,060.8  

<u>Owner's payout 42% of cost                $62,099.856  $76,885.536</u>

<u>Surplus (Cost - Owner payout)           $85,756.944  $106,175.264 </u>

<u></u>

<u>Computation table for additional financing fund:              </u>

<u>Particular                                     Current year   Future year </u>

Assets 82% of sales         $137,760   $170,560

<u>Less</u><u>: Liabilities 54% of sales        $90,720    $112,320    </u>

<u>Additional Funding          $47,040          $58,240    </u>

8 0
3 years ago
Awanda buys a $1000 par value 11-year bond with 8% semiannual coupons. The redemption value is equal to the par value. Awanda bo
Morgarella [4.7K]

Answer:

interest portion (17th payment) = $22.24 ≈ $22

premium amortization portion (17th payment) = $17.76 ≈ $18

Explanation:

the market price of the bond:

PV of face value = $1,000 / (1 + 2%)²² = $646.84

PV of coupon payments = $40 x 17.658 (PV annuity factor, 2%, 22 periods) = $706.32

market price = $1,353.16

the journal entry to record the investment in bonds:

Dr Bonds receivable 1,000

Dr Premium on bonds receivable 353.16

    Cr Cash 1,353.16

I prepared an amortization schedule using excel to determine the interest portion of the 17th payment and the premium amortization portion.

interest portion (17th payment) = $22.24 ≈ $22

premium amortization portion (17th payment) = $17.76 ≈ $18

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2 years ago
What is a good way to find a business idea that'll put your talents and interest to the best use
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2 years ago
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