Since the company is using the percentage of receivable
method in computing the allowance for doubtful account, the amount that will be
computed will be the ending balance of the allowance for doubtful account and
not the doubtful account expense itself. To compute for the allowance for
doubtful account using this method, you need to multiply the ending balance of
the accounts receivable with the given percentage. Therefore, the ending
allowance for doubtful accounts would be $15,000 ($150,000 x 10%).
To compute the amount of adjustment to the allowance for
doubtful accounts, we can come up with an equation:
Beginning balance ($16,000) + X (adjustment) – allowance written
off ($29,000) = Ending balance ($15,000)
Computing the equation, you can get the amount of $28,000
which is the adjustment of allowance for doubtful accounts or simply said, this
is the doubtful accounts expense for the year.
Its an outline of a keyword.
Answer:
That is $2,000 loss
Explanation:
After the hurricane Oscar received $140,000 for his loss, the adjusted basis for his property was $130,000 so he had a gain of 140,000- 130,000=$10,000.
According to Sec. 1033(a)(2) since the new property that was built (the replacement) was similar we will recognise the amount received from the insurance company ($140,000) to the extent that it pays for the replacement property.
That is
Gain or loss = amount paid by insurance company- cost of replacement property
Gain or loss= 140,000- 142,000
Gain or loss= -$2,000
That is $2,000 loss
Answer:
Purchase price parity.
Explanation:
Purchase prices parity is a tool that is used to compare the purchasing power of two currencies by using a certain good. It consider purchasing power of different locations.
Purchase price parity is calculated by dividing price of one basket of goods in one location and an equal basket of goods in another location.
So if we considered purchase price parity in the per capita GDP calculations, we will notice Japanese growth simply wavered during the 1990s.
The yield to maturity for the bond issued by Xenon, Inc. is 7.62%.
<h3>What is the yield to maturity for the bond issued by Xenon, Inc.?</h3>
The yield to maturity of a bond is the total return that would be earned if a bond is held to maturity.
The yield to maturity can be determined using a financial calculator:
- Coupon = 7.1% = 0.071 x 2000 = $142
- Number of years = 2042 - 2019 = 23
- Price =0. 94387 x 2000 = 1,887.74
- Full price = 2000
YTM = 7.62%
To learn more about yield to maturity, please check: brainly.com/question/5506528
