Expanding your trade credit can increase your sales volume. More time to checkout increases a customer's purchasing power and the number of products they purchase extends trade credit to your customers.
Giving your customers extra time to pay their bills can bring many benefits to your small business. Offering credit to customers is a way to increase sales and provides consumers with payment flexibility. While there are benefits to extending a loan, there are also issues to be aware of.
Generate more sales. The number one reason to consider financing your customers is that it makes your business more attractive to customers. People often want to buy something if they can buy it on credit.
Credit means the right to defer or incur a debt and defer payment of a debt offered or granted primarily for personal, family, or household purposes.
Learn more about credit at
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Answer:
present value = $500,000/1.08 + $515,000/1.08² + $600,000/1.08³ = $1,380,791.80
you calculated the present value correctly, assuming that you receive the annual payments at the end of each year (ordinary annuity).
but if you receive the annual payment at the beginning of the year (annuity due) = $500,000 + $515,000/1.08 + $600,000/1.08² = $1,493,255
it's not exactly the same value, but it is much closer and you could assume that the difference is due to rounding: ($1,493,255 - $1,495,370) / $1,495,370 = -0.1%
Answer:
$57,000
Explanation:
Net Income reported = $300,000
W-2 Wages = $120,000
Assets with an adjusted basis = $75,000
Taxable income before QBI deduction = $285,000
Total taxable income from all source deduction(including standard deduction) = $1,200 for singles & $24,000 for married filling jointly
<u>Calculation of QBI deduction for 2020</u>
The maximum possible pass through deduction = 20% * $285,000 = $57,000
Hence, the income is not over $415,000. So he doesnt qualify for the W-2 wages deduction.
Answer:
Option A will save her $15,500.
Explanation:
Financial aid is the assistance given to students to cater to a college education. It excludes Scholarships and grants as these are not cost items by other forms of assistance.
<u>Total for University Option A</u> excluding scholarships and grants
Tuition & Fees $10,000
Room and Board $11,500
Work-Study <u>$ 4,000 </u>
Total for A <u>$25,500</u>
<u>For university option B</u>
Tuition & Fees $28,000
Room & Board $ 9,000
Work-study <u>$ 4,000</u>
Total for B <u>$41,000</u>
Option B is more costly than A by :$41,000 - $25,500=$15,500.
Therefore, Option A saves $15,500
Answer:
$11,750
Explanation:
The computation of bad debt is shown below:-
Bad debt expense = Estimated allowance for uncollectible at the year end - Existing balance in allowance for uncollectible account credit balance
= ($314,000 × 4%) - $810
= $12,560 - $810
= $11,750
Therefore for computing the bad debt expenses we simply applied the above formula.
