Answer:
$73,500
Explanation:
Given data
Amount expected to be collected $898,000
Allowance for uncollectible accounts at 1/1/20 - credit balance $102,000 Accounts written off as uncollectible during 2020 $68,500
Accounts receivable at 12/31/20 $971,500
Uncollectible accounts recovered during 2020 $14,900
The computation of the bad debt expense is shown below:
Bad debt expense = Ending balance of account receivable - amount expected to be collected
= $971,500 - $898,000
= $73,500
This is a Mentor.
hope this helps!
Answer:
Net income= $24,550
Explanation:
The contribution margin ratio is <u>the result of deducting from sales all the variable costs, </u>expressed as a<u> percentage.</u>
<u></u>
<u>First, we need to calculate the total contribution margin:</u>
Total contribution margin= sales*contribution margin ratio
Total contribution margin= 103,000*0.85
Total contribution margin= $87,550
<u>Now, the net income:</u>
Net income= 87,550 - 63,000
Net income= $24,550
Answer:
Option D is correct
Explanation:
Option A is incorrect because in amortized mortgage case the person is paying interest plus principal amount and this aggregated amount gets lower with passage of months because the principal amount left to pay gets lowered and so the interest on this principal amount gets lowered. So saying that the interest paid each month by the passage of months get increased is incorrect.
Option B is also incorrect because monthly payment decreases with passage of time as stated in the justification of Option A above.
Option C is also incorrect because it depends upon the time period because time period is directly proportional to Mortgage paid. The greater the time period is the grerater would be the mortgage paid and the greater the mortgage payment is the greater is the share of interest payment share percentage.
Option D is also incorrect because in amortized mortgage case the person is paying interest plus principal amount and this aggregated amount gets lower with passage of months because the principal amount left to pay gets lowered and so the interest on this principal amount gets lowered. So saying that the interest paid in the first monthly payment will be higher is correct and also that the interest cost on the last payment of mortgage will be lower.
Option E is also incorrect because the amount representing interest in the first payment would be higher only if the nominal interest rate increases from the 10% and the option E says the opposite.
Answer: B. I, II, III and IV
Explanation:
From the question, we are informed that The Federal Reserve Board foresees the probability of an overheated economy and the resumption of double-digit inflation and that the FRB takes actions to slow down the economy, including increasing the discount rate.
The effect of this is that there will be a rise in prime rate, a rise in the bond yields and an accompanying decrease in bond prices, a slowdown in corporate growth and also reduction in corporate earnings. Therefore, option B is the right answer.