Answer: 8%
Explanation:
Profit Margin = Net income / Net sales
2017 Net income ⇒ $54,400
2017 Net Sales ⇒ $680,000
Profit Margin₂₀₁₇ = 54,400/680,000
= 0.08
= 8%
Answer:
June 3
Account Receivable $7,000 (debit)
Service Revenue $7,000 (credit)
June 8
Cash $4,500 (debit)
Discount allowed $500 (debit)
Accounts Receivables $5,000 (credit)
November 15
Bad Debt $1,500 (debit)
Accounts Receivables $1,500 (credit)
Explanation
The above transactions must be adjusted as they affect our transactions at the reporting date. Remember to grant the cash discount on early settlement of the payment made on June 8. The policy of sales on account is on the terms of 2% cash discount on payments made within 10 days.
The theme of a birthday party should always be based on (D. the interests of the guest of honor. <span />
Answer:
bad debt expense for the year 2016: 11
Explanation:
We can solve for bad debt expense doing the following
beginning allowance
- write-off accounts
+ bad debt expense
Equals to ending allowance
<u>We plug our values: </u>
2016 Beginning allowance 32
(Ending 2015)
write-off (12)
bad debt expense <u> ? </u>
2016 Ending allowance 31
And solve for bad debt expense:
Bad debt expense = 12 + 31 - 32 = 11
