Lynn, the manager of a transportation company, goes through the product delivery schedule. She assigns territories to each execu
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Answer:kindly check attached picture for details
Explanation:
Using the allowance method of accounting for uncollectible receivables. April 1 Sold merchandise on account to Jim Dobbs, $7,500. The cost of the merchandise is $3,000. June 10 Received payment for one-third of the receivable from Jim Dobbs and wrote off the remainder. Oct. 11 Reinstated the account of Jim Dobbs and received cash in full payment.
Answer:
a. Product X = 3.50 years
Product Y = 3.25 years
b. Product Y
Explanation:
The cash flows for the two products as well as the balance at the end of each year is given as follows:
For both products, the payback period is reached between the third and fourth year.
Product X:
Product Y:
Under the payback method, the alternative that presents the shortest payback period should be selected. Therefore, Product Y should be selected.