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3 years ago

Mar. 17 Received $275 from Shawn McNeely and wrote off the remainder owed of $1,000 as uncollectible.

Business

1 answer:

kogti [31]3 years ago

3 0

Answer: Please see the required journals below:

Mar. 17:

Debit Allowance for doubtful accounts $1,000

Credit Accounts receivable $1,000

July 29:

Debit Cash $1,000

Credit Bad debt recovery (income statement) $1,000

Explanation: On March 17, when $275 was received from Shawn and the remaining balance of $1,000 was written off, the allowance for doubtful accounts has to be debited since the company adopts the allowance method of accounting for uncollectible receivables. Note that the allowance account would have the required buffer to take care of this debit. Similarly, when the recovery was made, cash would be debited then the credit would default to income statement.

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How do political factors affect businesses

allsm [11]

Answer:

Change in the political factors can affect business strategy because of the following reasons: The stability of a political system can affect the appeal of a particular local market. Governments view business organizations as a critical vehicle for social reform. ... Government actions influence the economic environment.

Explanation:

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2 years ago

How does the use of plastic to produce bicycle helmets affect other plastic-using industries? A. It decreases the prices offered

zheka24 [161]

Answer:

The correct answer is option D.

Explanation:

The use of plastic to produce bicycle helmets will reduce the amount of resources available to other industries that use plastic. If an industry is making helmets from plastic, they are using plastic as inputs in the production process. This will cause a reduction in the quantity of plastic available.

This plastic is used by other industries as well. They will experience a reduction in the resources available to them.

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2 years ago

On June 30, 2018, Baird Company’s total current assets were $502,000 and its total current liabilities were $274,000. On July 1,

amm1812

Answer:

Before issuing the note

Current ratio

= Current assets

Current liabilities

= $502,000

$274,000

= 1.83: 1

After issuing the note

Current ratio

= $538,400

$274,000

= 1.96:1

Explanation:

Current ratio is the ratio of current assets to current liabilities. Before issuing the note, current assets amounted to $502,000 while current liabilities were $274,000. After issuing the note, current assets increased to $538,400 as a result of $39,400 received on note issue. This increases the current ratio from 1.83 to 1.96.

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3 years ago

Stones Corporation uses a predetermined overhead rate based on machine-hours to apply overhead to the manufacturing process. Las

Vinvika [58]

Answer:

A. $5.00 per machine-hour

Explanation:

The computation of the manufacturing overhead application rate is shown below:

= Estimated manufacturing overhead ÷ expected machine-hours incurred

= $550,000 ÷ 110,000 machine hours

= $5.00 per machine hour

In order to determine the manufacturing overhead application rate, basically we divided the estimated manufacturing overhead by the expected machine hours

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3 years ago

The total book value of WTC’s equity is $13 million, and book value per share is $20. The stock has a market-to-book ratio of 1.

lisabon 2012 [21]

Answer:

5.38 %

Explanation:

WACC = Cost of Equity x Weight of Equity + Cost of Debt x Weight of Debt

where,

Cost of Equity = 9.00 % (given)

After tax Cost of Debt = 6% x (1 - 0.21) = 4.74 %

Market Value of Equity = 1/5 x $13 million = $2.6 million

Weight of Equity = $2.6 million / $11.6 million = 0.22

Weight of Debt = $9 million / $11.6 million = 0.76

therefore,

WACC = 9.00 % x 0.22 + 4.74 % x 0.76

= 5.38 %

thus

the company’s WACC is 5.38 %

5 0

3 years ago