1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
bazaltina [42]
3 years ago
9

Crane Company has outstanding accounts receivable totaling $6.40 million as of December 31 and sales on credit during the year o

f $22.0 million. There is also a credit balance of $11000 in the allowance for doubtful accounts. If the company estimates that 5% of its outstanding receivables will be uncollectible, what will be the amount of bad debt expense recognized for the year?
Business
1 answer:
atroni [7]3 years ago
5 0

Answer:

$320,000 or $0.32 million

Explanation:

In accounting, the percentage of bad debt expenses is applied to the outstanding accounts receivable at the end of a particular accounting period.

In the question, the end of the accounting period is given as December 31 and the outstanding accounts receivable as at that December 31 is a total of $6.40 million. Therefore, we will disregard other values and simply apply 5% to the the outstanding accounts receivable of $6.40 million as at that December 31 as follows:

Bad debt = Outstanding accounts receivable × 5%

               = $6.40 million × 5%

               = $6,400,000 ×  5%

               = $320,000

Therefore, the amount of bad debt expense to recognized for the year is $320,000 or $0.32 million.

You might be interested in
Some say, "Pollution is the price of progress? 1. Who in fact pays the price? 2. Explain the moral and the economic issues raise
klemol [59]

Answer:The answer is 1 The people pays the price, 2. Industrialization improved the standard of living of the people and increase the country Gross domestic product 3. Economic progress is the increase in output, economic development is the equitable redistribution of produced goods and services, the government must put in place a body to ensure the control of pollution of the environment by the industries.

Explanation:

Industrialization is the policy of setting up several industries in a country.it is regard as the surest way to the economic development of a country. It one of the real sector of the economy which can quickly facilitate the economic development. The process of industrialization as good as it is has a negative effect on the environment through the environmental pollution, pollution is the process of releasing harmful and injurious chemicals into the environment by the the industries which may result in a serious health and environmental hazard such as cancer, heart disease, and damage to other vital organs of the body .Therefore, the people is the one paying the price of the effect of pollution on the environment where they live.

The moral issue raised by the assertion is that industrialization is capable of bringing the people out of poverty in the sense that the major causes of poverty in the society is the lack of unemployment, therefore industrialization provide jobs for the people which help in improving their standard of living., and in turn lift them out of poverty into the life of affluence. On the other hand, industrilization is capable of improving the economic development of the country. It is one of the major ways to increase the country's Gross domestic product of the country, it help in raising the national incomes of the country..it also helps in the increase in the level of productivity of the economy. It increase the level of investment in the nation,it increases savings in the economy and help in reducing the prices of goods produced in the country.

The connection between economic progress and development is that, economic progress is the increase in the Gross domestic product or a national income of a country or the increase in the output of a country., for example if the national income of a country rises by 10% in a certain year we can say that the economy of such country has experienced a growth rate of 10% . On the other hand, if it falls by 5% we say that the country had experience a negative growth. While economic development is the attainment of a number of ideals of modernization such as a rise in productivity, social and economic equity improved institutions and values.economic development emphasises equitable distribution of produced goods and services which lead to increase in the social and economic well being of the people. Growth can be achieved with an increase in output but development can be achieved not only with increased output but also through equitable redistribution of existing goods and services. In the process of ensuring the economic progress and development it is very important to put in place a measure to control the effect of pollution on the environment by ensuring that industries channel their toxic waste appropriately in such a way that it will not lead to a serious health hazard of the people living in the environment where the industries is located. On the other hand, government should establish a body know as the environmental protection council who will be charged with the responsibility of ensuring that industries comply with the environmental laws put in place to protect the environment as well as to sanction the industries who fails to operate within the framework of the law.

5 0
3 years ago
A registered nurse interprets a scribbled medication order by the attending physician as 25 mg. the nurse administers 25 mg. to
Kay [80]
The registered nurse
8 0
3 years ago
The most recent financial statements for Alexander Co. are shown here: Income Statement Balance Sheet Sales $ 45,650 Current ass
Law Incorporation [45]

Answer:

$4,533.05

Explanation:

Return on equity (ROE) = Net income / Equity

Return on equity (ROE) = $6,992 / $50,300

Return on equity (ROE) = 13.9%

Retention ratio = 1 - Dividend payout ratio

Retention ratio = 1 - 35%

Retention ratio = 65%

Sustainable growth rate = [13.9%*65%] / [1 - 13.9%*65%]

Sustainable growth rate = 0.09035 / 0.90965

Sustainable growth rate =0.09932392

Sustainable growth rate = 9.93%

Maximum dollar increase = Sales * Sustainable growth rate

Maximum dollar increase = $45,650 * 9.93%

Maximum dollar increase = $4,533.05

5 0
3 years ago
Did silly putty receive any other recognition
Papessa [141]
Yes, It was known for a temporary solution of glue... Although it didnt last long... lol
8 0
3 years ago
Paul wants to accumulate $14,500 in order to make the down payment for a new condo. Today he can start investing $2,500 annually
kati45 [8]

Answer:

4.80 years

Explanation:

We use the NPER formula in this question which is shown in the spreadsheet.

The NPER represents the time period. inv

Given that,  

Present value = $0

Future value = $14,500

PMT = $2,500

Rate of interest = 10%

The formula is shown below:

= NPER(Rate,PMT,-PV,FV,type)

The PMT come in negative

So, after solving this, the answer would be 4.80 years

7 0
3 years ago
Other questions:
  • Mansfield, Inc., has two production departments, Assembly and Packaging. The company uses a job-order costing system and compute
    8·1 answer
  • After explaining a new procedure to her employees, amy asks, "is there anything that wasn't clear?" she is asking this question
    5·1 answer
  • Ford Motor Company is discussing new ways to recapitalize the firm and raise additional capital. Its current capital structure h
    5·1 answer
  • A chef who is responsible for preparation of salads, cold appetizers, and pâtés is called a
    8·1 answer
  • Would you measure the length of a bench in centimeter or in meters
    14·1 answer
  • Interest is eligible to be capitalized as part of an asset's cost, rather than being expensed immediately, when:
    9·1 answer
  • Describe three types of rewards in financial form<br>​
    7·1 answer
  • While out shopping, Lebron sees a sign for print tees advertised at 3 for $35 or $15 each. Lebron decides to buy 2 print tees. I
    7·1 answer
  • Assuming all other things are the same, if there was a decrease in the break-even point, selling price per unit must have?
    13·1 answer
  • the inventory costing method that matches each unit of inventory with its actual cost is referred to as the
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!