Answer:
The correct answer is letter "D": does not require estimates of bad debt losses.
Explanation:
There are mainly two approaches while recognizing bad debts (unpaid debts): <em>the allowance method </em>and <em>the direct write-off method</em>. Using the allowance method the unpaid account receivable goes through a series of stages until it is recognized as a bad debt. There are no set criteria to do so. When the firm eventually recognizes and calculates the amount of a bad expense, it is recorded in an allowance account. The negative balance diminishes the company's revenue.
The direct write-off method does not generate any allowance account. The account receivable is simply written-off after the company determines the debt as uncollectible. Thus, there is no need to estimate bad debt losses using this approach.
Because people are desperate lol
A combination of the product, company, and salesperson.
Answer:
Interest expense 2894.7 debit
discount on Bonds Payable 394.7 credit
cash 2500 credit
Interest expense 2906.55 debit
discount on Bonds Payable 406.55 credit
interest payable 2500 credit
Explanation:
We have to solve for the 2013 year which is one year after the issuance ofthe bonds.
We solve for the bond issuance price and then, we construct the bonds schedule and take the numbers from period 3 and 4.
Issuance proceeds: present value fo the coupon payment and maturity at market rate:
C 2,500.000
time 10
rate 0.03
PV $21,325.5071
Maturity 100,000.00
time 10.00
rate 0.03
PV 74,409.39
PV c $21,325.5071
PV m $74,409.3915
Total $95,734.8986
Now we will calcautlethe interest expense by multiplying carrying value by the market value and sutract from the cash outlay to determinate the amortization on the bonds.
Answer:
a special type of stock that is not transferable from the current holder to others until specific conditions are satisfied
Explanation:
The restricted stock is the stock or the securities that are restricted means that they are not fully transferable when the specific conditions is not fulfilled. When these conditions would be fulfilled so these stock would not be considered as a restricted and they are freely transferable
Therefore the first option is correct