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Aneli [31]
3 years ago
13

Upon examination of his mortgage document, Jared finds a clause stating he will owe additional interest if he pays off his loan

within one year of the loan origination date. What type of penalty does this describe?
Business
1 answer:
irina [24]3 years ago
6 0

Answer:

Prepayment penalty

Explanation:

A prepayment penalty is charged when a borrower significantly writes down or offset his loan earlier than as planned in the loan agreement , especially within the first five year of taking the loan. Some lenders restrict repayment to a certain value before you can be fined.It serves as  a form of security on the lenders interest income.

It is calculated on the outstanding loan balance  which mean the longer you owe , the less your penalty and vice versa.

On the side of the borrower , accepting the clause in the loan agreement always come with a lower interest on loan

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Net Zero Products, a wholesaler of sustainable raw materials. Prepared the following aging of receivables analysis.
kkurt [141]

Answer:

Net Zero Products

a) The balance of the Allowance for Doubtful Accounts using the aging of accounts receivable method is $4,300.

b) Adjusting Entry to record bad debt expense:

Debit Bad Debt Expense $1,700

Credit Allowance for Doubtful Accounts $1,700

To record the bad debt expense for the period and bring the allowance to $4,300 credit balance.

Explanation:

a) Data and Calculations:

Aging of receivables analysis:

Total (days)                          0        1 to 30     31 to 60     61 to 90     above 90

Accounts receivable $171,000   $96,000   $34,000     $15,000     $12,000

Percent uncollectible                      1%            4%                 6%            9%

Allowance for doubtful     0          $960        $1,360         $900        $1,080

Total allowance for doubtful = $4,300 (960 + 1,360 + 900 + 1,080)

b) The adjustment in the Allowance for Doubtful Accounts needed for the current period is $1,700 ($4,300 - $2,600).  This amount will be debited to the Bad Debts Expense account and credited to the Allowance for Doubtful Accounts.  It will bring the total for the Allowance for Doubtful Accounts to $4,300 from $2,600.

3 0
3 years ago
Which of the following best describes a push strategy? Group of answer choices Manufacturer builds strong consumer demand for a
maksim [4K]

Answer: Manufacturer develops mutual effort and cooperation in the development and implementation of promotional strategies by working directly with members to develop strong and viable promotional support.

Explanation:

In a push strategy the manufacturer develops mutual effort and cooperation in the development and implementation of promotional strategies by working directly with members to develop strong and viable promotional support.

In a push strategy, the firm takes it's products to the consumer. The aim of this is for the product to gain much exposure than it already has and attract more sales. Other sales channels are bypassed in the scenario, leaving just the producer and the customer. Advertisment is one of the greatest promotional tool for push strategy.

6 0
3 years ago
In the Excel, or spreadsheet, approach to recording financial transactions, if manufacturing overhead is underapplied by X dolla
Tatiana [17]

Answer:

False.

Explanation:

To close the underapplied Manufacturing Overhead account requires that the Cost of Goods Sold is debited, say with $100 while the Manufacturing Overhead account is credited with the same amount.  Underapplied Manufacturing Overhead account means that a debit balance is left after applying the overhead to production.  To close this debit, therefore, a credit entry is required to the manufacturing overhead account.  The corresponding debit entry goes to the Cost of Goods Sold, or this may be apportioned among Cost of Goods Sold, Finished Goods Inventory, and Work-in-Process, as may be the case.

5 0
3 years ago
What determines the foreign exchange rate?
FromTheMoon [43]
What determines the foreign exchange rate?
A. The government
B. Small businesses
C. Market forces
D. Consumers
The answer is A the government
4 0
3 years ago
Read 2 more answers
Under U.S. GAAP, cash flows from investing activities do not include:a. cash payments to acquire equipment.b. cash received from
Semenov [28]

Answer:

The correct answer is letter "C": investment revenue in cash.

Explanation:

Cash flows from investing activities are portrayed in the Cash Flow Statement indicating the amount o cash that was generated or spent from investment-related activities of the company. Usually, <em>cash payments to acquire physical assets, receipts from the sale of intangible assets, cash payments or receipts for the sale of bonds or shares of other companies, </em>and <em>cash payments in the form of loans</em> are considered in the cash flows from investing activities.

<em>According to the U.S. Generally Accepted Accounting Principles (GAAP), investment revenue in cash is reported as an inflow from operating activities.</em>

6 0
3 years ago
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