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Nadya [2.5K]
3 years ago
13

Willis Company had $200,000 in credit sales for 2016, and it estimated that 2% of the credit sales would not be collected. The b

alance in Accounts Receivable at the end of the year was $38,000. Willis had never used the allowance method to account for its receivables till 2016. The net realizable value of its accounts receivable at the end of the year was $34,000. True False
Business
1 answer:
HACTEHA [7]3 years ago
7 0

Answer:

True

Explanation:

It's True because you have to deduct from the total Accounts Receivable the balance in the Cr Allowance for Uncollectible Accounts  estimated.

The company estimate that 2% of the total Credit Sales will be uncollectible, which is, $4,000, if we deduct this value of the balance of accounts receivable of $38,000, we have a Net Realizable Value of Accounts Receivable of $34,000

Credit Sales $ 200,000

Cr Allowance for Uncollectible Accounts $ 4,000

Dr Accounts receivable $ 38,000

Net Realizable Value of Accounts receivable $ 34,000

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The break-even point is the sales level at which a company_______________.a. incurs a loss. b. contribution margin equals fixed
Neporo4naja [7]

Answer:

b. contribution margin equals fixed costs

e. has a profit of $0.

Explanation:

The break even point is the point in which the firm has no profit and no loss situation. When it meets we called as break even point.

So, the break even point is the point at which the profit is zero plus the contribution margin equals to the fixed cost i.e means

Contribution margin = Fixed cost

Sales - variable cost = Fixed cost

If both are equal so it seems the profit is zero

4 0
3 years ago
Credit risk measures using the structural model: assume a company has the following characteristics.
Alexeev081 [22]

Answer:

a ) Probability of default of debt over the time to maturity is 12.92%

(b ) Expected loss: $39.53

(C ) Present value of expected loss is $45.59

Explanation:

a ) Probability of default of debt over the time to maturity is 12.92%

(b ) Expected loss: $39.53

(C ) Present value of expected loss is $45.59.

Values calculated as shown in my detailed step by step answer at the attachment.

please kindly refer to attachment.

4 0
2 years ago
Prepare a classified year-end balance sheet, (Note: A $9,000 installment on the long-term note payable is due within one year.)
Katarina [22]

Answer:

<u>Blessinger Co.</u>

<u>Classified Balance Sheet as at December 31, 2017</u>

ASSETS

<u>Non- Current Assets</u>

Office equipment                                                 $38,000

Accumulated depreciation-Equipment               ($3,200)       $34,800

Building                                                                $288,000

Accumulated depreciation-Building                   ($42,000)     $246,000

Land                                                                                            $700,000

Total Non Current Assets                                                          $980,800

<u>Current Assets</u>

Accounts receivable                                                                    $27,000

Prepaid Prepaid                                                                            $15,000

Insurance $9,000

Office supplies $3,300

Cash                                                                                             $112,000

Total Current Assets                                                                  $166,300

TOTAL ASSETS                                                                         $1,157,100

EQUITY AND LIABILITIES

LIABILITIES

<u>Current Liabilities</u>

Accounts payable                                          $25,800

Salaries payable                                                     $14,500

Interest payable $2,500

Note Payable                                                                                $9,000

Total Current Liabilities                                                               $51,800

<u>Non-Current Liabilities</u>

Long-term note payable ($72,000 - $9,000)                           $63,000

Total Non- Current Liabilities                                                    $63,000

TOTAL LIABILITIES                                                                    $114,800

EQUITY

P.Blessinger, Capital $910,000

P. Blessinger, Withdrawals ($200,500)

Profit for the Year                                                                     $332,800

TOTAL EQUITY                                                                       $1,042,300

TOTAL EQUITY AND LIABILITIES                                           $1,157,100

Explanation:

A Balance Sheet shows the Balance of Assets, Liabilities and Equity as at the Reporting date.

<u>Calculation of Profit for the year :</u>

                                                                         $                    $

Service fees earned                                                       430,800

<em>Less Expenses</em>

Salaries expense                                       90,000

Insurance expense                                      5,200

Rent expense                                               5,000

Depreciation expense-Equipment                800

Depreciation expense-Building                  7,000       (108,000)

Profit for the year                                                           332,800

7 0
3 years ago
When the price level changes, which of the following variables will change and thereby cause a change in the aggregate quantity
jok3333 [9.3K]

Answer:

The correct answer is option d.

Explanation:

When there is an increase in the price level, the purchasing power of money decreases. People will need more amount of money to purchase the same level of goods. This will reduce the real value of wealth.  

When the purchasing power decreases and people need more amount of money to purchase the same level of goods, the demand for money will increase. This will cause the interest rate to rise as well.  

As the price level increases, domestic goods become relatively expensive. This will cause the export demands to decline. So the demand for domestic currency will also decline. This will further cause the value of currency to depreciate.

5 0
3 years ago
The four seasons spa and salon has retained a marketing consultant to assist them with its annual strategic planning retreat. Sh
Alecsey [184]

Firms are known to have goals. the first activity the organization should pursue as part of its strategic planning process is to;

  • Review or establish the organization's mission and goals.

<h3>What is the mission and goals of the Organization about?</h3>

The mission of any firm is said to show or depicts the organization's past and present by using or stating why the organization exists.

It also talks about the role a firm plays in society. Goals are said to be some key aims that organizations have to pursue so as to reach their visions and missions.

The best goals are regarded as SMART. which means: specific, measurable, achievable, realistic, and time-bound.

Learn more about organization's mission from

brainly.com/question/4269555

6 0
1 year ago
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