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Ede4ka [16]
3 years ago
5

A company has $96,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts.

Experience suggests that 5% of outstanding receivables are uncollectible. The current balance (before adjustments) in the allowance for doubtful accounts is a(n) $860 credit. The journal entry to record the adjustment to the allowance account includes a debit to Bad Debts Expense for:
Business
1 answer:
nekit [7.7K]3 years ago
3 0

Answer:

$3,940

Explanation:

The journal entry to record the adjustment to the allowance account includes-

Debit   Bade debt expense                        $3,940 (Note - 1)

Credit  Allowance for doubtful accounts  $3,940

<em>Note - 1</em>

Calculation = $96,000 × 5% = $4,800

However, as the allowance for doubtful accounts has a credit balance of $860 credit, the new bad debt expense will be = ($4,800 - $860) = $3,940 debit.

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Answer: Yes, I agree with Graeter’s decision to stop franchising?.

Explanation:

Graeter’s decision to stop franchising was simply to maintain the quality of their products.

If I was in his position, I'll also like to maintain our products quality. It is vital to keep the family business while also following the laid down principles by those before me. Hence, I agree with his decision.

5 0
2 years ago
Who is responsible for filing your federal tax return?
Setler79 [48]
The answer is B, your employer:)
8 0
3 years ago
Which type of market research is data that an entrepreneur collects himself or​ herself; for​ example, from a survey of potentia
solniwko [45]

Answer:

Primary Research Data.

Explanation:

Entrepreneur can collect the primary data by themselves. They can collect in numerous available methods and options. They can collect it either with the help of questionnaires or by taking interviews. Many more options like open ended questionnaires or close ended questionnaires then can be opted accordingly. Likewise, in-depth interviews can be conducted to collect more valuable insights about the customers which definitely can be very helpful fo the entrepreneurs in order to make strategical and tactical level decisions quite effectively.

5 0
3 years ago
A corporate bond currently yields 8.5%. Municipal bonds with the same risk, maturity, and liquidity currently yield 5.5%. At wha
max2010maxim [7]

Answer: 35.29%

Explanation:

Municipal Bonds are attractive in that they give the tax benefit of being tax exempt whereas a corporate bond is liable for taxation. The tax rate that will therefore make an investor indifferent between the two bonds is the one that will equate the Corporate bond's yield net of tax to the yield on the Municipal bond.

5.5% = 8.5% * ( 1 - x)

5.5% = 8.5% - 0.085x

0.085x = 8.5% - 5.5%

0.085x = 3%

x = 35.29%

6 0
3 years ago
Alternative A would involve substantial fixed but relatively low variable costs: fixed costs would be $250,000 per year, and var
stepladder [879]

Answer:

From zero to 33 boats option B would be best

Explanation:

Assuming the first alternative (A)is 250,000 fixed and 500 per boat

second (B) 2,500 cost per boat

and third (C) 50,000 fixed and 1,000 cost per boat

We want' to know at which level B would be the best option

we want to know when alternative C or A have a cost of 2,500 or lower:

A:

500 + \frac{250,000}{Q} = 2,500

\frac{250,000}{2,500 - 500} = Q

Q = 125

From this point, as fixed cost will be distribute among more units, the cost will decrease meaking C better than B

C:

1,000 + \frac{50,000}{Q} = 2,500

\frac{50,000}{2,500 - 1,000} = Q

Q = 33.33

From this point, as fixed cost will be distribute among more units, the cost will decrease meaking A better than B

From zero to 33 boats option B would be the best of the three options

6 0
3 years ago
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