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bogdanovich [222]
3 years ago
11

Allowance for Doubtful Accounts has a credit balance of $500 at the end of the year (before adjustment), and uncollectible accou

nts expense is estimated at 2% of sales. If sales are $600,000, the amount of the adjusting entry to record the provision for doubtful accounts is:
Business
1 answer:
BabaBlast [244]3 years ago
4 0

Answer:

$11,500

Explanation:

Given

Sales = $600,000

And uncollectible accounts expense is estimated at 2% of sales

Therefore,

uncollectible accounts expense = 2% × $600,000

                                                      = $12,000

Since allowance for Doubtful Accounts has a credit balance of $500 at the end of the year (before adjustment), the account has to be adjusted by

= $12,000 - $500

= $11,500

The amount of the adjusting entry to record the provision for doubtful accounts is $11,500.

You might be interested in
Poe Company is considering the purchase of new equipment costing $80,000. The projected net cash flows are $35,000 for the first
sergey [27]

Answer:

$23,773.65

Explanation:

Net present value is the present value of after tax cash flows from an investment less the amount invested

NPV can be calculated using a financial calculator :

cash flow in year 0 = $-80,000.

Cash flow in year 1 and 2 = $35,000.

Cash flow in year 3 and 4 = $30,000.

I = 10%

NPV = $23,773.65

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

5 0
3 years ago
Huai takes out a $3,600 student loan at 6.6% to help him with 2 years of community college. After finishing the 2 years, he tran
Alja [10]

Answer:

a. The monthly payment on loan 1 is $76.03.

b. The monthly payment on loan 2 is $411.69.

Explanation:

a. Calculate the monthly payment on loan 1.

To determine the amount of periodic payments, the present value of annuity formula should be used:

PV=P(\frac{1-(1+r)^{-n} }{r} )

Where:

PV= present value

p=periodic payment

i=rate of interest

n=number of periods

We get the data for this exercise:

PV= 3,600 (loan).

p= unknown (we must find this value)

i= 6.6% or 0.066. However, because we need to know the monthly payment, the interest rate should be divided by 12 (0.066 / 12).

n= 4 years and 7 months, that is 55 months.

And we replace in the formula:

3600=P(\frac{1-(1+\frac{0.066}{12})^{-55} }{\frac{0.066}{12} } )

3600=P(\frac{1-(1+0.055)^{-55} }{0.0055} )

3600=P(\frac{1-(0.7395812268)}{0.0055} )

3600=P(\frac{0.2604187732}{0.0055} )

3600=P(47.348867)

Therefore:

P=\frac{3600}{47.348867}

P=76.03

The monthly payment on loan 1 is $76.03.

b. Calculate the monthly payment on loan 2.

We get the data for this exercise:

PV= 11,600 (loan 2).

p= unknown (we must find this value)

i= 7.3% or 0.073. However, because we need to know the monthly payment, the interest rate should be divided by 12 (0.073 / 12).

n= 2 years and 7 months, that is 31 months.

And we replace in the formula:

11600=P(\frac{1-(1+\frac{0.073}{12})^{-31} }{\frac{0.073}{12} } )

11600=P(\frac{1-(1+0.006083)^{-31} }{0.006083} )

11600=P(\frac{1-(0.8286047296)}{0.006083} )

11600=P(\frac{0.1713952704}{0.006083} )

11600=P(28.1761088936)

Therefore:

P=\frac{11600}{28.1761088936}

P=411.69

The monthly payment on loan 2 is $411.69.

8 0
3 years ago
1. _______ Allen was driving home when a deer jumped out. The deer damaged his truck.
kow [346]

Answer:

Matching Situation with appropriate term:

1. _c. Collision __ Allen was driving home when a deer jumped out. The deer damaged his truck.

2. _n. Property Damage Liability _ A lightning strike at Troy’s home damages his TV and DVD player.

3. _h. Insurance Company/Insurer _ ABC Insurance Inc. advises Katie that she cannot take out a policy on Brad Pitt.

4. _p. Risk management _ Adam’s job is deciding if the insurer will accept a risk and what the cost will be.

5. __o. Renter’s __ Amy decides not to purchase a new car because insurance is so expensive.

6. __m. Premium _ Bill is paid for a collision claim based on the book value of his vehicle.

7. __i. Insurance fraud _ Cheetum’s Body Shop padded the repair bill for Chris’s pick up.

8. _b. Bodily Injury Liability _ Janet hit a car and someone was hurt. This covers the medical expenses.

9. _r. Uninsured and Underinsured Motorist _ Keith let the auto insurance policy lapse. Keith rear-ended Ann’s truck today.

10. _d. Comprehensive _ Missy owes for damage to John’s car because she hit him while talking on her cell.

11. _m. Premium_ Monica’s life insurance costs more but includes a savings component.

12. _s. Whole Life__ Pat insures his business partner, Chuck, with a $1 million life insurance policy.

13. __m. Premium__ Rob gets a bill in the mail from ABC Insurance Company for $125.

14. __h. Insurance Company/Insurer _ Ross contacted this business when he had an automobile accident.

15. _n. Property Damage Liability _ Tammy hit a telephone pole and did over $2000 damage to her car.

16. _e. Financial Responsibility Law __ This requires Joe to buy liability insurance prior to getting a license plate.

17. __l. Medical Payments __ Thomas shut the trunk on his thumb and went to the emergency room.

18. __i. Insurance fraud_ Tony and Chris staged an auto accident to collect claim benefits.

19. _n. Property Damage Liability_ Wanda’s car was damaged by hail during a storm.

20. _b. Bodily Injury Liability_ An ambulance transported Melanie to the hospital after the other car crossed the center line and caused a wreck.

Explanation:

Appropriate terms:

a. Actual Cash Value

b. Bodily Injury Liability

c. Collision

d. Comprehensive

e. Financial Responsibility Law

f. Homeowner’s

g. Insurable Interest

h. Insurance Company/Insurer

i. Insurance fraud

j. Insured

k. Joint Insurance

l. Medical Payments

m. Premium

n. Property Damage Liability

o. Renter’s

p. Risk management

q. Underwriter

r. Uninsured and Underinsured Motorist

s. Whole Life

4 0
3 years ago
Write down the characteristics which had the highest poverty rate in 2016?
adoni [48]

Answer:

Follows are the solution to this question:

Explanation:

The poverty rate is the proportion of those whose income falls below the poverty line, as well as, the official poverty level of 2016 was 12.7% when half of the median family income for the overall population. Below are the highest poverty level features in 2016:

  • Desire to share exposure to food and clean water.
  • Entry to living standards or jobs is little to no.
  • Conflict.
  • The unfairness.
  • Wretched schooling.
  • The shift in the atmosphere.
  • Transportation deficit.
  • The government's limited capacity.
3 0
3 years ago
Once established, company cultures can be embedded and perpetuated by
Elena-2011 [213]
<span>Systematic indoctrination of fresh associates in the tradition's basics, regular recurrence of central costs through higher managers and team associates, and usual rituals honoring associates who show required cultural behaviors</span>
6 0
3 years ago
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