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Juliette [100K]
3 years ago
10

An aging of Lily Company’s accounts receivable as of December 31 revealed the following. Amount % Uncollectible Current $20,000

2% 1-30 days 50,000 4% 31-60 days 30,000 7% Over 60 days 10,000 25% Before any adjustment for the current year’s bad debts, Lily Company has a balance in its allowance for bad debts of $3,000; this $3,000 represents the remaining allowance associated with accounts receivable created in prior years. Lily Company uses the aging method of estimating bad debt expense. What is BAD DEBT EXPENSE for THIS year?
Business
1 answer:
lana66690 [7]3 years ago
4 0

Answer:

What is BAD DEBT EXPENSE for THIS year?

4000

Explanation:

Aging    

Current          20000 2% 400

1-30                  50000 4% 2000

31-60         30000 7% 2100

Over 60         10000 25% 2500

   

                            7000

Allowance bad debts   3000

Expense                    4000

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The profit and loss account is used to determine the net profit of the business. The starting point for the profit and loss account is the balance carries down from the trading account which is the gross profit of business. Hope this helped you out...
4 0
3 years ago
During September, the capital expenditure budget indicates a $280,000 purchase ofequipment. The ending September cash balance fr
Mariulka [41]

Answer:

$260000

Explanation:

$280k  purchase equiment >> Outflow of cash

$40,000>> Operative Cash >> Inflow Cash

$260k >> cash loan in order to achieve balance

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$20000 >> Cash balance

5 0
3 years ago
What is the future value of this investment at the end of year five if 5.34 percent per year is the appropriate interest (discou
leva [86]

According to Formula:- AFV=PV(1+i)

<h3>How do you calculate the future value of an investment?</h3><h3>The future value formula</h3>

future value = present value x (1+ interest rate)n Condensed into math lingo, the formula looks like this:

FV=PV(1+i)n In this formula, the superscript n refers to the number of interest-compounding periods that will occur during the time period you're calculating for.

FV = $1,000 x (1 + 0.1)5

<h3>What will the future value be at the year's end?</h3>

If the proper interest (discount) rate is 5.34 percent annually, what will the investment be worth at the end of year five?

The present value ($100) plus the value of the interest at the set interest rate (5% of $100, or $5) equal the future value (FV) at the end of a year.

<h3>How is future value compounded annually determined?</h3>

The number of compound periods is exponentiated in formula 9.3, FV=PV(1+i)N. Over the course of five years, the 8% compounded monthly investment generates 60 periods of compound interest, whereas the 8% compounded annual investment generates only five periods.

<h3>How are present and future values determined?</h3>

Main Points

PV = FV/(1 + I n, where PV = present value, FV = future value, I = decimalized interest rate, and n = number of periods, is the formula for calculating present value.

The formula for future value is FV = PV (1 + i)n.

To Know more about future value (FV)

brainly.com/question/15071193

#SPJ4

7 0
2 years ago
The total dollar value of all goods and services produced by all people within the boundaries of a country during a specified ti
kvasek [131]

Answer:

The gross domestic product

Explanation:

The gross domestic product = Consumption spending + Investment + Government Spending + Net Export

8 0
3 years ago
The Baldwin company will sell 100 units (x1000) of capacity from their Baker product line. Each unit of capacity is worth $6 plu
yKpoI14uk [10]

Answer: $2,210,000

Explanation:

From the question, we are informed that the Baldwin company will sell 100 units (x1000) of capacity from their Baker product line and that each unit of capacity is worth $6 plus $4 per automation rating.

We are further told that the Baldwin company will sell the capacity for 35% off. The amount they'll receive when the capacity is sold will be:

The cost per unit will be

= 6 + (4 × 7)

= 34

The worth of the capacity will now be:

= 100000 × 34

= 3,400,000

The amount received will be:

= 3400000 × (1-35%)

= 3400000 × 0.65

= $2,210,000

3 0
3 years ago
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