Answer: $400
Explanation:
A bad debt expense will be recognized by a company when the company cannot collect its receivable due to the fact that a customer cannot pay back their debt and fulfill their obligation.
Therefore, the estimated bad debts will be computed below:
= ($25,000 × 2% - $100)
= $500 - $100
= $400
Then, the journal entry to record the estimated bad debt expense will be:
Debit: Bad debt expense A/c $400
Credit: Allowance for doubtful debts $400
Answer:
Zero, because the selling of fixed asset is reported as cash inflow under investing activity.
Explanation:
Cash flow from investing activities includes all the investments in the long term assets and sale of investments or individual assets. The investment items may include Property, Plant and Equipment.
So this means that it will not be included in the Cash from Operating Activities because it is a Cash from Investing Activities.
Answer:
d.6.5
Explanation:
The formula to compute the times interest earned ratio is shown below:
Times interest earned ratio = (Earnings before interest and taxes) ÷ (Interest expense)
where,
Earnings before interest and taxes = Income before income tax for year + Interest
= $550,000 + $100,000
= $650,000
And, the interest expense = Bonds payable × rate of interest
= $1,000,000 × 10%
= $100,000
Now put these values to the above formula
So, the ratio would equal to
= $650,000 ÷ $100,000
= 6.5 times
Answer:
Probable cause.
Explanation:
Probable cause by definition is reasonable grounds to believe that a particular person has committed a crime, especially to justify making a search or preferring a charge.
This statement is true - only because a team is cohesive doesn't mean that it is going to be very productive.
This doesn't only depend on the team itself, but also on the relationship between management and the working team. The team has the potential to be very productive, but it will depend on this relationship I mentioned. If it's good, they are likely to be productive, and vice versa.