Answer:
a. Debit Allowance for doubtful debt $4,398
Credit Accounts receivable $4,398
Being entries to write off receivable due from Madonna Inc.
b. $739,480 before and after the write-off
Explanation:
When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.
To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.
The realizable value of accounts receivable before the write off is the net of the accounts receivable and the allowance for doubtful debt
= $762,000 - $22,520
= $739,480
This amount remains the same after the write off as the write off will reduce the balances in both the allowance for doubtful debt account and accounts receivable.
The answer to the blank space is conclusions.
Inferential statistics differ from descriptive statistics not just in the level of complexity of statistical methods, but also their use. Inferential statistics are commonly used to draw inferences from the dataset – relationships and comparisons between the datasets are often the goal in using inferential statistics. Descriptive statistics, just like how the name implies, describes the dataset – what’s the average, the midpoint, the highest number.
Answer:
Competence
Explanation:
One of the best ways to learn new ideas and work is to self-learn them. It helps to engage and learn new things, Eric wants to become a commercial lender that is why he tries to seek out feedback from his manager and he manages his own workload. Eric is trying to build his own competence to work effectively and effectively.
Answer:
5%
Explanation:
Let recall the DDM (dividen discount model) model for stock valuation:
V_o = [D_o x (1 + g)]/(r-g), where:
V_o: Intrinsic value of the mentioned stock;
D_o: Current dividend per share. Please note that D_o x (1+g) = D_1 = Expected dividend paid at the end of the year.
g: long-term earning growth;
r: cost of equity.
Putting all together, we have:
26.25 = 2.6/(0.15 - g). Solve the equation: g = 0.15 - (2.6/26.25) = 5% (approximately).
