Answer:
<em>a. True</em>
Explanation:
Yes! the given statement is <em>very true</em>, because as we know that all the level of a nation's rate of interest has an influence on the BOP ( generally known as Balance Of Payments ) financial account, and also relatively low real interest rates are generally encouraged.
An outflow of funds are been pursued at a higher interest rates in an another nation's currency as well.
Answer:
a. Journal entry
b. $18,150
c. $586,850
Explanation:
a. The adjusting journal entry is as follows
Bad debt expense A/c Dr
To Allowance for doubtful debts
(Being bad debt expense is recorded)\
The computation of the bad debt expense is shown below:
= Account receivable × estimated percentage given + debit balance of allowance for uncollectible accounts
= $605,000 × 3% + $4,700
= $18,150 + $4,700
= $22,850
b. The adjusted balance in Allowance for Doubtful Accounts is $18,150
c. The cash realizable value is
= $605,0000 - $18,150
= $586,850
Answer:
Given that,
Value of bonds issued = $100,000
Maturity period = 10 years
Bonds were issued at face value.
Interest rate = 8%
Interest is paid once per year on December 31.
Since, the bonds are issued at the face value, so there would be no premium or discount on the issue of bonds.
The cash is received by the company for issuing bonds and it is debited. We know that bonds are a part of liabilities, so they are credited
Therefore, the journal entry is as follows:
Cash A/c Dr. $100,000
To bonds payable $100,000
(To record the issuance of bonds)
LeBron James would have the absolute advantage in mowing the lawn. This is because he can get in done in two hours rather than the four hours it would take Neighbor Scotty to do it. However, he would have a much higher opportunity cost, which is why Neighbor Scotty has the comparative advantage. He may not be able to mow the lawn as quickly as Lebron, but he can do it with a lowe opportunity cost.
