<span>d.
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Answer:
Explanation:
Cost of inventory = Purchase cost + Transportation cost - Purchase return - Purchase discount
Purchase cost = 23,400
Transportation cost = 690
Purcahse return = 1300
Purchase discount = (23400 - 1300)*3% = 663
Cost of inventory = 23,400 +690-1300-663 = 22,127
Answer: 9.81%
Explanation:
Cost of capital = (cost of debt * weight of debt) + ( cost of equity * weight of equity)
Cost of Equity = Risk free rate + beta * Market risk premium
= 8% + 0.59 * 6%
= 11.54%
Cost of capital = (8% * 49%) + (11.54% * 51%)
= 9.81%
Answer:
Explanation:
a. The journal entry is shown below:
Allowance for doubtful accounts A/c Dr $4,210
To Accounts receivable $4,210
(Being the write-off amount is recorded)
b. The computations are shown below:
Cash realizable value of the accounts receivable before the write-off would be
= Account receivable balance - Allowance for doubtful accounts
= $635,600 - $23,140
= $612,460
Cash realizable value of the accounts receivable after the write-off would be
= Account receivable balance - Allowance for doubtful accounts
= $635,600 - $23,140
= $612,460
The $4,210 has added in both the items but it does not affect the overall balance. So, the balance would remain unchanged