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yan [13]
4 years ago
9

Using the percentage-of-receivables method for recording bad debt expense, estimated uncollectible accounts are $47000. If the b

alance of the Allowance for Doubtful Accounts is $5400 credit before adjustment what is the amount of bad debt expense for that period?
Business
1 answer:
LekaFEV [45]4 years ago
3 0

Answer: $41,600

Explanation: The percentage of receivables method is used to evaluate the amount of bad debt the company can experience in future. Under this method, the bad debt expense is the difference between the ledger balance and the actual balance of bad debt expense.

In the given case, we can calculate it as follows :-

Bad debt expense = estimated uncollectible accounts - allowance

                                = $47,000 - $5,400

                                = $41,600

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Suppose that a car manufacturer discovers that it can lower its average costs if it diversifies its operation by also producing
frutty [35]

Answer: Economies of scale

Explanation:

Economies of scale occurs when there is a reduction in cost as a result of an increase in production. Economies of scale are the cost advantages which a business can exploit through the expansion of its scale of production. The aim of economies of scale is to lower the average costs of production.

When the car manufacturer diversifies his operation by producing pickup trucks and SUVs, there'll be a reduction in the average unit cost of output. This term refers to Economies of scale.

4 0
3 years ago
Read 2 more answers
Which of the following is an advantage of newspaper advertising?
Furkat [3]

Answer: Option A  

                             

Explanation: One of the major advantage of using newspaper is that an individual can reach to the prospects on such demo-graphical areas where other mediums might not work effectively and efficiently.

If an entity wants to advertise its product to smaller audiences at living in difficult places then it should go for newspaper. Also newspaper is the most common medium as one might not watch tv or listen radio daily but most of the individuals read newspaper everyday at morning.

Hence the correct option is A .

4 0
4 years ago
18d-8d+16 simplify with distributive property​
Anika [276]

Answer:2(5d+8)

Explanation:

We need to combine like terms in this expression by adding up all numerical coefficients and copying the literal part, if any.

No numerical coefficient implies value of 1.

There is only one group of like terms:

5 0
4 years ago
A friend wants to borrow money from you. He states that he will pay you $3,900 every 6 months for 7 years with the first payment
Mila [183]

Answer:

Amount paid today will be equal to $6165.163

Explanation:

We have given initial payment P=3900 $

Rate of interest r = 6.2%

Time is given 7 years and 6 months

As interest is given semiannually

So total time period = 2×7+1 = 15 period

Rate of interest r=\frac{6.2}{2}=3.1 %

Amount after 7 years 6 months will be equal to A=P(1+\frac{r}{100})^n

A=3900(1+\frac{3.1}{100})^{15}=6165.163 $

So amount paid today will be equal to $6165.163

8 0
4 years ago
A company wants to set up a new office in a country where the corporate tax rate is: 15% of first $50,000 of taxable income; 25%
Pavlova-9 [17]

Answer:

Total tax payable is $46430

Explanation:

We have given total gross revenue = $500000

Total cost = $300000

Allowable tax deduction = $30000

Startup tax credit = $8000

Total taxable income = Total revenue - ( total cost +total deduction + startup credits)

= $500000 - ($300000+$30000+$8000) = $162000

Now total tax =(0.15\times 50000+0.25\times 25000+0.34\times 25000+0.39\times 62000)=$46430

Therefore total tax payable = $46430

5 0
3 years ago
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