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natita [175]
2 years ago
15

On December 31, 2018, Larry's Used Cars had balances in Accounts Receivable and Allowance for Uncollectible Accounts of $75,000

and $1,250, respectively. During 2019, Larry's wrote off $2,175 in accounts receivable and determined that there should be an allowance for uncollectible accounts of $5,150 at December 31, 2019. Bad debt expense for 2019 would be:
Business
1 answer:
kodGreya [7K]2 years ago
3 0

Answer:

Bad debt expense for 2019 would be $6,075

Explanation:

We know that,

Ending balance of Allowance for Uncollectible Accounts = Beginning balance of Allowance for Uncollectible Accounts + 2019 bad debts - 2019 write off amount

$5,150 = $1,250 + 2019 bad debts - $2,175

$5,150 = -$925 + 2019 bad debts

So,2019 bad debts = $5,150 + $925 = $6,075

We do not consider the beginning balance of the accounts receivable

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Jameson Corporation was organized on May 1. The following events occurred during the first month. Received $68,000 cash from the
monitta

Answer:

Explanation:

The journal entries are shown below:

1.  Cash A/c Dr $68,000

                  To Common stock                      $5,150

                   To Additional paid-in capital     $62,850

(Being the cash is received)

The common stock value is computed by

= Number of investors × number of shares × par value

= 5 investors  × 103 shares × $10

= $5,150

And, the remaining balance is transferred to additional paid-in capital

2. No journal entry required

3.  Cash A/c Dr $17,000

            To Long term note payable A/c $17,000

(being cash is borrowed for long term payable)

4.  Equipment A/c Dr $18,000

        To Cash A/c                         $1,500

        To Short term note payable $16,500

(Being equipment is purchased for cash and short term note payable)

5.  Short term Notes receivable A/c Dr $1,600

           To Cash                                                       $1,600

(Being cash is paid)

6. Store fixtures A/c Dr $19,000

            To Cash A/c                       $19,000

(being cash is paid for store fixtures)

7 0
3 years ago
What two possible reasons could cause the required return to differ from the coupon interest​ rate? ​(Select the best answer​ be
mixas84 [53]

Answer:

A. Cost of funds has changed

B. Firm's risk has changed

Explanation:

The required rate of return on bonds refers to an investor's expected rate of return which is based upon rate of return other investors earn in the market on similarly priced bonds. This is also referred to as yield to maturity i.e YTM.

Coupon rate of payment of bond is the interest payment on such bonds which is usually fixed at the time of issue of such bonds.

Required rate of return may differ on account of change in cost of funds to the issuer which is cost of debt denoted as K_{d} . Cost of debt is determined by tax rate and net proceeds from the issue of such bonds.

Required rate of return may also change on account of change in the firm's risk. If the firm assumes more risk, such risk would deter investors from investing in such bonds and in such scenario, the firm has to offer higher coupon rate than the rate prevailing in the market to attract the investors.

5 0
2 years ago
Choose the correct definition of purchasing power parity.
Elanso [62]
956-455-9448 call me please
8 0
3 years ago
which of the following is true about product life cycles? group of answer choices a reminder promotion is normally used in the i
bulgar [2K]

Based on business strategies and production, the statement that is true about product life cycles is "Early adopters buy in the introductory phase."

<h3>What is the Life Cycle of a Product</h3>

The life cycle of a product is a term that is used to describe the proportion of time a product goes from being introduced into the market by the producers until it's taken off the shelve.

Usually, the product life cycle is in different stages, and each of the stages is important to the success of the products in the market.

<h3>The Life cycle of a product is the following:</h3>
  • introduction,
  • growth,
  • maturity, and
  • decline.

Generally, the in the introduction stage of a product's life the early adopters are the first category of consumers that try new products before most other consumers key into it.

Hence, in this case, it is concluded that the correct answer is option c. "Early adopters buy in the introductory phase."

Learn more about the Product Life cycle here: brainly.com/question/7510515

#SPJ1

8 0
1 year ago
A stock sells for $6.99 on December 31, providing the seller with a 6% annual return. What was the price of the stock at the beg
Dimas [21]

Answer:

Correct option is 6.59

Explanation:

Selling price of stock at the end of the year is $6.99. Annual return rate is 6%. Price of stock at the beginning will be present value of stock valued at the end discounted at 6%. Computation is as shown below:

Present\ value\ or\ price\ of\ stock = Selling\ price\left ( \frac{1}{1+i} \right )^{n}

= 6.99\left ( \frac{1}{1+0.06} \right )^{1}

= \frac{6.99}{1.06}

= $6.59

Therefore, Stock's price in the beginning of the year is $6.59.

6 0
2 years ago
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