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maxonik [38]
3 years ago
14

Finish Co. uses the allowance method to account for bad debts. At the end of 2010, Finish Co.'s un-adjusted trial balance shows

an accounts receivable balance of $30,000; allowance for doubtful accounts balance of $200 (credit); and sales of $600,000. Based on history, Finish estimates that bad debts will be 1% of sales. The entry to record estimated bad debts will include a debit to Bad Debts Expense in the amount of:_______.
a. $500.
b. $6, 200.
c. $100.
d. $5, 800.
e. $6,000.
Business
1 answer:
Anon25 [30]3 years ago
7 0

Answer:

$5,800

Explanation:

Finish Co. uses the allowance method to account for bad debts. At the end of 2010,

Finish Co.'s un-adjusted trial balance shows an accounts receivable balance of $30,000;

allowance for doubtful accounts balance of $200 (credit);

and sales of $600,000.

Based on history, Finish estimates that bad debts will be 1% of sales.

The entry to record estimated bad debts will include a debit to Bad Debts Expense in the amount of:_______.

Total Bad debts at year end  = 1% of Sales = 0.01 x 600,000 = $6,000

Amount of Allowance for Doubtful accounts = $200

Therefore the debit to Bad Debts Expense in the amount of $6000 - $200 = $5,800

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Answer:

<h3>P3 and Q3 </h3>

The intersection of AD curve and the long-run aggregate supply curve determines the equilibrium real GDP and price level in the long run.This happens at P3 and Q3.

Explanation:

Exhibit 9-4 Refer to Exhibit 9-4.

Assume the economy is self-regulating and currently is in long-run equilibrium with the price level equal to P5.

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<h3>P3 and Q3 </h3>

The intersection of AD curve and the long-run aggregate supply curve determines the equilibrium real GDP and price level in the long run.This happens at P3 and Q3.

6 0
3 years ago
According to the liquidity premium theory of the term structure of interest rates, if the one-year bond rate is expected to be 4
KatRina [158]

Answer:

Interest rate on the a three year bond =5.5%

Explanation:

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number of years = 3

The interest rate on the a three year bond can be calculated as

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= 0.5 + ( (4+5+6)/3)

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4 0
3 years ago
If the U.S. dollar appreciates, an MNC's: a. exports denominated in foreign currencies will probably increase. b. U.S. sales wil
Hoochie [10]

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MNC refers to Multinational corporation .

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Therefore, the Option C is correct because the MNC's interest owed on foreign funds borrowed will probably increase when U.S. Dollars appreciates.

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<em>brainly.com/question/14124450</em>

4 0
2 years ago
Your company manufactures riding lawn mowers.One of your customers,Marie,writes a claim,demanding a compensation for her faulty
Alekssandra [29.7K]

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Based on the information given in the question, the best way to phrase the refusal of Marie's claim for adjustment is that "As stated in our contract, we are liable to pay compensation only when our personnel repair the equipment".

Since a service executive in the company discovers that the mower was dismantled by someone, then Marie's claim for adjustment can be refused since it wasn't dismantled by someone from the company.

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3 years ago
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olganol [36]
Okay so rewards and penalties make people make better decisions. So like if I don't get questions wrong on a test I receive $5 from my parents, but if I fail a test I'm grounded for a week. So I study more to get money. (this is not actually me just making an example). Rewards make people want to do better, and so do penalties. I don't want to do bad and get punished for it.
8 0
3 years ago
Read 2 more answers
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