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sveticcg [70]
3 years ago
5

Becky had net credit sales in 2020 of $2,000,000. At December 31, 2020, before adjusting entries, the balances in selected accou

nts were: accounts receivable $1,700,000 debit, and allowance for doubtful accounts $2,200 credit. Becky estimates that 8% of its credit sales will prove to be uncollectible.
What is the ending balance in the bad debt expense reported on December 31, 2020?
Business
1 answer:
denpristay [2]3 years ago
3 0

Answer:

Following Becky's estimation, the bad debt expense must be equal than the 8% of the total credit, less the value already booked in the balance sheet accounts (doubtful accounts).

Explanation:

In this case, 2,000,000*8%=160,000. Then this 160,000 must be subtracted to 2,200 (160,000-2,200=157,800). Finally, the bad debt expense to be reported is $157,800

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You own shares of Somner​ Resources' preferred​ stock, which currently sells for per share and pays annual dividends of ​$ per s
dimulka [17.4K]

Answer:

You should buy more shares

Explanation:

The above-mentioned question is missing few components. I have added them to explain on how the question would be solved if all the variables were provided. Please note the additions in bold text below. The answer of which is given afterwards.

You own 300 shares of Somner​ Resources' preferred​ stock, which currently sells for $39 per share and pays annual dividends of ​$5.50 per share. If the​ market's required yield on similar shares 12% is ​percent, should you sell your shares or buy​ more?

Solution as mentioned below:

First of all we need to calculate value of the preferred stock by dividing the annual dividend per share from the market required rate.

Value of preferred stock = 5.50 / 12%

Value of preferred stock = $45.83

Now given the fact that the current price at which the stocks are sold is $39 which is less than the price at which they are actually valued which is $45.83. You should buy more of the shares as they are currently undervalued.

8 0
3 years ago
You are the executive director of a nonprofit that runs an animal shelter and animal services, such as low-cost spay/neuter prog
EleoNora [17]

Answer:

Hold meeting with employees, volunteers and representatives of other local shelters and listen carefully as they brainstorm ideas.

Explanation:

A leader can be defined as an individual who motivates and inspires a group of people towards achieving a common goal. A good leader must possess the following characteristics:

1) A leader must be a good communicator, he/she must be able to deliver information to the group in an orderly manner.

2) A good leader must be able to inspires others.

3) A leader must lead with honesty.

4) A leader must be able to make good decisions.

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8 0
3 years ago
Darla owns a dress shop called Darla's Darling Dresses. During the past year, Darla sold some assets to upgrade her facility. Sh
Alexxx [7]

Answer:

Darla's amount realized on the sale is $800

Adjusted basis in the assets sold is $300

Producing a realized gain on the sale of $500

Explanation:

Amount realized = cash received + FMV of other property + buyer’s assumption of seller’s liabilities – seller’s expenses

Amount realized = 600 + 200 + 0 -0

= $800

Adjusted basis = initial basis – cost recovery deductions

Adjusted basis = 2500-2200 = $300

Gain or loss realized = amount realized – adjusted basis = 800-300

= $500

Therefore Darla's amount realized on the sale is $800 and the adjusted basis in the assets sold is $300, producing a realized gain on the sale of $500

8 0
3 years ago
An income statement for Tommy's Bookstore for the first quarter of the year is presented below: Tommy's Bookstore Income Stateme
Semmy [17]

Answer:

Contribution margin = $200,000

Explanation:

As per the data given in the question,

Contribution margin = Sales - Variable expense

Number of books = $880,000 ÷ $55

=16,000

Gross margin  = 340,000

Variable selling expenses = 16,000 × $6

=$96,000

Variable administrative expense = $880,000 × 5%

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Total = $96,000 + $44,000

= $140,000

Contribution margin = $340,000 - $140,000

= $200,000

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3 years ago
Creating a chart using a spreadsheet Chart Wizard involves four steps. Which is the first step?
ycow [4]
Making a line for ur chart i'm guessing
8 0
3 years ago
Read 2 more answers
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