Answer:
See explanation section
Explanation:
To record the journal entry to write off the uncollectible account according to the direct write-off method, we have to use bad dad expanse instead of an allowance account.
December 31 Bad Debt Expense Debit $1,200
Account receivable - Acme, Inc. Credit $1,200
Note: As the company did not get the money from the Acme, Inc., They treated the expense as irrecoverable.
Answer:
$60,500
Explanation:
With regards to the above, the write off does not affect the realizable value of accounts receivables. Also, the total asset or net income is not affected by the write off or specific account. Instead, both assets and net income are affected in the period when bad debt expense is predicted and then recorded with an adjusting entry.
Accounts receivables
$550,000
Less:
Allowance for doubtful account
($550,00 × 2.5%)
($13,750)
Estimated realizable accounts receivables
$536,250
If the amount of bad debt decreases or increases as given below, then the income is also increased or decreased by the amount given.
Bad debts = $13,750
Uncollectible previously written off = $8,800
Difference
$4,950
Net income
$60,500
Less:
Difference
($4,950)
Reported income
$55,550
Answer:
$1059.98
Explanation:
To determine the clean price, we have to first find the accrued interest.
Accrued interest = (coupon rate × par value/2) × period (months to next coupon date/12)
accrued interest = $96/2 x 5/12
accrued interest = $48 × 0.417
= $20.016
Our dirty price = $1080
clean price = dirty price - accrued interest
clean price = $ (1080 - 20.016)
Clean price = $1059.98
Answer:
Take a look to the following explanation
Explanation:
Reserve ratio ,10%=0.1
Money multiplier=1/reserve ratio=1/0.1=10
If feds sells 1million$ bond the economy reserves increases by 1 million$ and money supply decrease by 10 million $(1*money multiplier).
If fed changes RR to 5% but banks choose to hold another ,5 percent as excess reserve ,then on aggregate actual reserve ratio will be 10%. So money multiplier would remain same,10 and so the money supply
