Answer:
$31,400
Explanation:
Ruby estimates that only 2% of its 2019 credit sales will be written off
Ruby Red has a $12,800 credit balance in its allowance for doubtful accounts
Ruby Red has credit sales of $1,570,000.
Bad debt expense = Credit sales * 2% of its 2019 credit sales
Bad debt expense = $1,570,000 * 2/100
Bad debt expense = $1,570,000 * 0.02
Bad debt expense = $31,400
Answer: Cash $1,960
Sales returns and allowances $800
Sales discount $40
Accounts receivable $2,800
Explanation:
Sales = $2,800
Sales returns = $800
Discount rate = 2%
The final amount due will be:
= Sales- Sales returns
= $2,800 - $800
= $2,000
Sales discount = 2% × $2,000 = $40
Cash received will be:
Final amount due - Sales discount
= $2,000 - $40
= $1,960
The journal entry will be:
Debit Cash $1,960
Debit Sales returns and allowances $800
Debit Sales discount $40
Credit Accounts receivable $2,800
if Logan received a $2,500 bonus and his mps is 0.20, his consumption rises by $2,000 and his savings rises by $500
Answer:
1. Medicare tax.
2. Local income tax.
3. Federal income tax.
4. Social Security tax.
5. State income tax.
Explanation:
Taxation can be defined as the involuntary or compulsory fees levied on individuals or business entities by the government to generate revenues used for funding public institutions and activities.
The various type of tax with their correct description are;
1. Medicare tax: it is used to support healthcare costs for retired workers. An example is the Affordable Care Act (ACA) which became effective on the 23rd of March, 2010 and it's focused on making affordable health insurance available to qualified people or households through cost-sharing reductions and premium tax credits (subsidies).
2. Local income tax: it is collected by town, school district, counties and cities to fund city or community programs.
3. Federal income tax: it is collected from most workers, who pay up to 39.6 percent of their earnings. This type of tax is paid by employees with respect to the amount of money they receive as their wages or salary.
4. Social Security tax: it is used to provide financial support to retired and disabled workers. In the United States of America, the Social Security Administration (SSA) adopted the Old-Age, Survivors, and Disability Insurance (OASDI) program to support retired and disabled workers.
5. State income tax: it is collected from workers in most states to fund their budget and the rate differs from state to state.
Answer:
The finance charge
Explanation:
The finance charge is the total cost incurred when borrowing money, including interest amount and all other fees. It is the extra money paid on top of the borrowed amount. The finance charge may be a flat fee or a percentage of the principal amount.
The finance charge represents the expense incurred for using credit. The finance charge is an important consideration when choosing a preferred lender.
