Answer:
a. Does this situation describe a loss contingency? Explain.
Allowance for doubtful accounts are a loss contingency since they mar or may not happen, but the company has to account for them.
b. What is the bad debt expense that Manda Panda should report in its 2018 income statement?
total bad debt expense = total sales x 3% = $3,150,000 x 3% = $94,500
c. Prepare the appropriate journal entry to record the contingency.
Dr Bad debt expense 94,500
Cr Allowance for doubtful accounts 94,500
d. What is the net realizable value (book value) Manda Panda should report in its 2018 balance sheet?
ending balance of accounts receivable = $537,500 - $94,500 = $443,000
Answer:
a) a demand curve
b) a demand schedule
Explanation:
A demand curve is a graph that shows the relationship between price and quantity demanded.
A typical demand curve is downward sloping. This means that the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.
A demand schedule is a table that shows the relationship between price and quantity demanded.
Attached is an image of a demand curve
I hope my answer helps you
Answer:
92.15%
Explanation:
Calculation for Green's cash tax rate
First step is to calculate the taxes payable
Taxes payable=$1,024,000+$51,200-$106,000-$25,600
Taxes payable=$943,600
Now let calculate the cash tax rate
Using this formula
Cash tax rate=Taxes payable/Pretax book income
Let plug in the formula
Cash tax rate=$943,600/$1,024,000
Cash tax rate=0.9215*100
Cash tax rate=92.15%
Therefore the Cash tax rate is 92.15%
Answer:
$80
Explanation:
Maximum wage is the maximum amount of money that a firm can pay its worker based on what the worker can produce and generate as revenue to the firm.
Given that the worker can produce 20 units of output which can be sold for $4 per unit, The maximum wage that the firm can pay the worker = output × price per unit output.
Maximum wage the firm can pay the worker = 20 units × $4 per unit = $80
Answer:
- Paul Donut Franchisee : Perfectly Elastic Supply
- P & G Facial Tissues : Elastic Supply
- Papermate Pens : Inelastic Supply
- Bright Ideas Lightbulbs : Perfectly Inelastic Supply
Explanation:
Price Elasticity of Supply is sellers' quantity supplied response to price change. P(Es) = % change in supply / % change in price.
Supply can be classified by Price Elasticity of Supply, as undermentioned :
- Elastic Supply : P(Es) > 1 ; % change in supply > % change in price
- Inelastic Supply : P(Es) < 1 ; % change in supply < % change in price
- Unitary Elastic : P (Es) = 1 ; % change in supply = % change in price
- Perfectly Elastic Supply : P(Es) = ∞ ; Supply responds infinitely to any slight price change & so prices are constant.
- Perfectly Elastic Supply : P (Es) = 0 ; Supply responds negligibly to massive price change & so quantity supplied is constant
- Paul Donut Franchise : Unlimited Supply at constant price, so supply perfectly elastic
- P & G facial tissues : % change in supply i.e 66% > % change in price i.e 10% , so supply is elastic
- Papermate pens : % change in supply i.e 10 % < % change in price i.e 15% , so supply is inelastic
- Bright Ideas Lightbulbs : % change in supply 15% negligible in relation to 400% price change , so supply is perfectly inelastic
