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Slav-nsk [51]
3 years ago
15

During its first year of operations, Gehrig Company had credit sales of $3,000,000, of which $400,000 remained uncollected at ye

ar-end. The credit manager estimates that $18,000 of these receivables will become uncollectible.
Prepare the journal entry to record the estimated uncollectibles. (Assume an unadjusted balance of zero in Allowance for Doubtful Accounts.)
Business
2 answers:
LenKa [72]3 years ago
8 0

Answer:

Bad Debts (Dr.)                                               $18,000

                              Allowance for Doubtful Accounts (Cr.)          $18,000

Explanation:

When the management expects that it will not be able to collect a certain amount of receivable, it records Bad Debts in the Profit or Loss and a Credit entry to it is charged to contra-asset account known as "Allowance for Doubtful Accounts". It should be kept in mind that, at this stage it is only the expectation of management that the receivable from customers will not be collected. When the management is certain about the default of customer, it write-offs the Receivables. This is done by debiting Allowance for Doubtful Account and crediting Accounts Receivables. Write-off has no impact on the Net Realizable Value (Accounts Receivables - Allowance for Doubtful Account).

Thanks!

tensa zangetsu [6.8K]3 years ago
7 0

Answer:

bad debt expense 18,000 debit

  allowance for doubtful accoutn 18,000 credit

Explanation:

as we are given with the estimated amount of uncollectible and there is no beginning alloance balance as it is their first year of operations the journal entry will be for the full amount.

we record the alowance in the credit side as conrta-asset account

and debit the bad debt expense associate with the receivables to match agaisnt the period they are generated.

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Assume that you manage a risky portfolio with an expected rate of return of 18% and a standard deviation of 42%. The T-bill rate
amm1812

Answer:

a. Expected Return = 16.20 %

   Standard Deviation = 35.70%

b. Stock A  = 22.10%

   Stock B  = 29.75%

   Stock C  = 33.15%

   T-bills  = 15%

Explanation:

a. To calculate the expected return of the portfolio, we simply multiply the Expected return of the stock with the weight of the stock in the portfolio.

Thus, the expected return of the client's portfolio is,

  • w1 * r1 + w2 * r2
  • 85% * 18% + 15% * 6% = 16.20%

The standard deviation of a portfolio with a risky and risk free asset is equal to the standard deviation of the risky asset multiply by its weightage in the portfolio as the risk free asset like T-bill has zero standard deviation.

  • 85% * 42% = 35.70%

b. The investment proportions of the client is equal to his investment in T-bills and risky portfolio. If the risky portfolio investment is considered of the set proportion investment in Stock A, B & C then the 85% investment of the client will be divided in the following proportions,

  • Stock A = 85% * 26% = 22.10%
  • Stock B = 85% * 35% = 29.75%
  • Stock C = 85% * 39% = 33.15%
  • T-bills = 15%
  • These all add up to make 100%
3 0
3 years ago
Read 2 more answers
Your boss has purchased a new laptop for business use and has asked you to make sure the data he plans to store on the laptop is
wlad13 [49]

Answer:

A. Use BitLocker Encryption with the TPM chip

B. Secure Boot option

Explanation:

Trusted Platform Module or TPM chip is a tool used to produce reliable and unusual cryptographic codes and save them in an encrypted form to be utilized to validate hardware accessories. The cryptographic systems are encrypted and can be decrypted only by the TPM chip, which designed and encrypted them. <em>BitLocker</em> software uses a TPM chip to control the encryption of the computer data. Since the key saved in the TPM is distinctive, the BitLocker software can quickly verify the encrypted TPM and do not pass the decryption to another computer.

The method of Secure Boot is where the Operating System boot pictures and code are verified against the hardware before they are authorized to be used in the actual boot process.

If my boss uses both the encryption and secure boot, the data will become secure.

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Which is an example of a long-term goal? Group of answer choices I will pay my cell phone bill on time this month. I will train
Nikolay [14]

Answer:

The example of a long-term goal is, I will train for a marathon.

Explanation:

This is a long-term goals because you train and reach it in a long period of time. The others will be counted as a Short-term goal. I hope this helped! :D

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A antonym for delicate could be firm
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