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VARVARA [1.3K]
3 years ago
6

The accounting department of a large firm is interested in modeling the dynamic of its accounts receivable (that is,the money th

at is owed to it by its customers) when a charge sale occurs,abill is sent out at the end of the month .payment is due within thirty days ,but may not occure in that time.if no payment is received within six months of the billing date,the amount is classified as bad debt.thus,an individual account is described by its age in months,or by "paid" or by "bad debt".For numerical values,assume that the prob. that payment is made in the first month is 0.8 and decline by 0.1 each additional month.that is,the prob.it is paid in the second month is 0.7 ,in the third month is 0.6,and so on. Formulate the terminating Markov chain that describes the debt payment.
Business
1 answer:
Illusion [34]3 years ago
8 0

Answer:

Explanation:

Here is the Markov chain, when the problem says 'terminating' it means that the probability after seven months never changes. After six months

accounting moves it to "bad debt," and, for the purposes of this problem, transistion probabilites end.

Month one: paid 0.8 unpaid 0.2

Month two: paid 0.7 unpaid 0.3

Month three: paid 0.6 unpaid 0.4

Month four: paid 0.5 unpaid 0.5

Month five: paid 0.4 unpaid 0.6

Month six: paid 0.3 unpaid 0.7

Month seven: and above paid 0 unpaid 1.0

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It increases peoples' knowledge about cultural differences, awareness, and communication.

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3 years ago
Bretthauer Corporation has provided data concerning the Corporation's Manufacturing Overhead account for the month of July. Prio
Elanso [62]

Answer:

b. Manufacturing overhead applied to Work in Process for the month was $66,000

Explanation:

In posting the journal entries for a manufacturing company, the total of the amount on the credit side of the Manufacturing Overhead account represents the amount applied to and to be posted to the debit side of the Work in Process to complete the double entries.

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2 years ago
Investigative people will make good scientists. True or False. (Career Explorations Final Exam)
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Answer:

True

Explanation:

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5 0
3 years ago
Read 2 more answers
Ruth Company produces 1,000 units of a necessary component with the following costs: Direct Materials $34,000 Direct Labor 15,00
Snowcat [4.5K]

Answer:

Option B is correct

The maximum price to be paid is = $64000

Explanation:

To determine the the maximum price we would compute using the relevant costs of internal production.

<em>The maximum price to be paid to external supplier should be the total relevant costs associated with internal production.</em>

Total relevant cost of internal production = 34,000 + 15,000 +9000 + 6000

The maximum price to be paid is = $64000

Note that the fixed overhead  of $6000 is associated with the internal production the balance of 4,000 is irrelevant and would be incurred either way.

4 0
3 years ago
22. Preferred stockholders hold a claim on assets that has priority over the claims of A) both common stockholders and bondholde
DedPeter [7]

Answer:

C) common stockholders, but after that of bondholders.

Explanation:

Preferred stockholders hold a claim on assets that has priority over the claims of common stockholders but after that of bondholders.  

The preferred shareholder is given preference for the distribution of dividends, which is higher than the common stock. It is paid as per the discretion of the company´s directors. Instead, they have limited right and they do not vote for corporate governance like a common stockholder. In the case of the dissolution of the company, the preferred shareholders will still receive payment due to them in terms of dividends. They have a feature of both bonds and equity stockholders.

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3 years ago
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