Answer:
$1,420,000 is the correct answer.
Explanation:
Answer:
$3,791
Explanation:
Given that
Expected amount received = $1,000
Number of years = 10 years
Rate of interest = 5
So, the present value of this annuity would be
= Expected amount received × PVIFA factor at 5 years at 10%
= $1,000 × 3.7908
= $3,791
Refer to the PVIFA table
Simply we multiplied the expected amount received by the PVIFA factor
Answer:
DR Allowance for Doubtful Accounts 2,000
CR Accounts Receivable—A. Hopkins 2,000
Explanation:
Because Gideon uses the allowance method, when a debt is written off, it will be written off from the allowance that was created for doubtful debts instead of directly to the bad debt account.
Accounts Receivable will be credited to show that it is decreasing and Allowance for Doubtful debt will be debited because expenses are debited when they increase.
Answer:
d. Need more information.
Explanation:
Demand elasticity is a microeconomic concept that aims to measure the sensitivity of demand in the face of price changes.
When calculated, elasticity reaches values that signal consumers' response to price. If elasticity is a value between 0 and 1, then demand is inelastic - little sensitive to price changes. If demand is greater than 1, this means elastic - very sensitive to price changes.
The numbers presented by the question show a highly elastic demand for theater ticket prices in both cases, especially in the afternoon shift. Thus, the theater could lower the price of both, because in elastic demands, a negative variation in price will increase the demand. However, this is not enough to calculate profit maximization since the profit calculation formula also involves costs, which are not described in the question.
Answer:
Explanation:
The journal entries are shown below:
On March 12:
Accounts receivable A/c Dr $11,000
To Service revenue A/c $11,000
(Being the revenue is recorded)
On March 31:
Cash A/c Dr $11,000
To Accounts receivable A/c $11,000
(Being cash collection is recorded)
We do not consider the sales discount. Hence, ignored it
