Answer:
A) debit interest expense, $1000
Explanation:
to determine the accrued interest expense = $100,000 x 6% x 2/12 = $1,000
the journal entry should be:
December 31, 2018, accrued interest expense on note payable:
Dr Interest expense 1,000
Cr Accrued interest payable 1,000
Accrual accounting establishes that expenses must be recognize during the period that they occur regardless of when they are paid. So we must recognize 2 months worth of interest.
Answer: d. internal rate of return
Explanation:
The Internal Rate of Return can be a very useful method for measuring the viability of a product because it takes into account the magnitude and timing of cashflows when it discounts it to the current period to find out if it will lead to a higher NPV than zero.
The other methods have their limitation. The payback period does not take into account the entire lifetime but rather stops as soon as the project pays back and the other two do not take into account the timing of the cashflows.
Answer:
Results are below.
Explanation:
Giving the following information:
Initial investment= $6,000
<u>To calculate the future value, we need to use the following formula:</u>
FV= PV*(1+i)^n
<u>Compounded annually:</u>
n= 20
i= 0.035
FV= 6,000*1.035^20
FV= $11,938.73
<u>Compounded semi-annually:</u>
n=20*2= 40
i= 0.035/2= 0.0175
FV= 6,000*(1.0175^40)
FV= $12,009.58
<u>Compounded quarterly:</u>
n= 20*4= 80
i= 0.035/4= 0.00875
FV= 6,000*(1.00875^80)
FV= $12,045.78
<u>Compounded monthly:</u>
n= 20*12= 240
i= 0.035/12= 0.00292
FV= 6,000*(1.00292^240)
FV= $12,079.84
<u>Compounded weekly:</u>
n= 20*52= 1,040
i= 0.035/52= 0.000673
FV= 6,000*(1.000673^1,040)
FV= $12,078.71
<u>Compounded daily:</u>
n= 20*365= 7,300
i= 0.035/365= 0.000096
FV= 6,000*(1.000096^7,300)
FV= $12,091.78
Johnson Controls and Dodge engaged in<u> Reverse Marketing.</u>
<h3>What is Reverse Marketing</h3>
Reverse Marketing can be defined as a type of marketing in which the customer are the one that patronized your a company business instead of the company creating brand or product awareness to the consumer.
This type of marketing strategy enables customer to be attracted to your business just as in the case of Johnson controls and its consumer Dodge.
Therefore Johnson Controls and Dodge engaged in<u> Reverse Marketing.</u>
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Learn more about reverse marketing here:brainly.com/question/25754149
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Answer:
$4,400
Explanation:
The computation of the amount which is debited to a bad debt expense account is shown below:
= Net Credit sales × estimated percentage given
= $880,000 × 0.5%
= $4,400
The journal entry is shown below;
Bad debt expense A/c Dr $4,400
To Allowance for doubtful debts $4,400
(Being bad debt expense is recorded)