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aivan3 [116]
3 years ago
5

A company has total accounts receivable of $500,000 for the year and it estimates that uncollectible accounts will be 3% of acco

unts receivable. If Allowance for Doubtful Accounts has a credit balance of $2,000 prior to adjustment, its balance after adjustment will be a credit of
a.$17,000.
b.$13,000.
c.$14,940.
d.$15,000.
Business
1 answer:
antiseptic1488 [7]3 years ago
6 0

Answer:

Option (d) is correct.

Explanation:

Given that,

Total accounts receivable = $500,000

Credit balance of Allowance for Doubtful Accounts = $2,000

Estimates uncollectible accounts:

= 3% of accounts receivable

= 0.03 × $500,000

= $15,000

The closing balance after adjustment is the latest estimates:

= 3% of accounts receivable

= $15,000

$15,000 includes both the opening credit balance of allowance for doubtful accounts worth of $2,000 and the current year adjustment of $13,000.

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Aberwald Corporation expects to sell 90,000 bags of lawn fertilizer annually. The optimal safety stock (which is on hand initial
UNO [17]

Answer:

Annual demand (U) = 90.000 bags

Cost of each bag = $1.50

Inventory carrying cost per unit(C) = $1.50 × 20% = 0 30

Ordering cost per unit (O) = $15

Part A)

EOQ = \sqrt{\frac{2UO}{C}}

EOQ = \sqrt{\frac{2 * 90000 * 15}{0.30}}

EOQ = \sqrt{9000000}

EOQ = 3,000

Part B)

Maximum inventory = EOQ + Safety inventory on hand  

Maximum inventory = 3000 + 1000

Maximum inventory = 4.000

Part C)

Average inventory = Maximum inventory + Minimum or Safety /2

Average inventory = 4,000 + 1,000 / 2

Average inventory =2,500

Part D)

How often company order = Annual demand / EOQ

How often company order = 90,000 / 3.000

How often company order = 30

4 0
4 years ago
Gideon Company uses the allowance method of accounting for uncollectible accounts. On May 3, the Gideon Company wrote off the $2
Natali5045456 [20]

Answer:

Journal Entry

May 3

Dr. Allowance for doubtful accounts   $2,800

Cr. Account Receivable                        $2,800

Explanation:

When a receivable of the business is considered to be non-collectible from a customer, it is written off from the accounts. This event will decrease the account receivable balance and allowance for the doubtful accounts too. a Debit entry in the Allowance for doubtful account and a credit entry in accounts receivable is made to incorporate the effect of this transaction.

6 0
3 years ago
A U.S.-based importer, Zarb Inc., makes a purchase of crystal glassware from a firm in Switzerland for 39,960 Swiss francs, or $
IRINA_888 [86]

Answer:

e. $638

Explanation:

payment to be made as per forward contract (IN $)

= 39960/ 1.682  

= $23757.43  

now the actual rate after 90 days is 1.638

payment at 1.638 rate = 39960/ 1.638

                                    = $24395.6  

loss by hedging = $24395.6 - $23757.43  

                           = $638.17

Therefore, The U.S. firm have saved or lost $638 in U.S. dollars by hedging its exchange rate exposure.

4 0
3 years ago
Imagine that a designer writes content for their online portfolio. To come across as knowledgeable about UX design, they include
denis23 [38]

To improve their written content, the designer can do the following:

  1. Understand the audience he targets.
  2. Incorporate storytelling to capture the interests of his audience.
  3. Make the presentation simple.
  4. Incorporation of text in the User Interface.
  5. Make a good copy to sell your skill.

<h3>Who is a designer?</h3>

A designer is an individual that uses computer-aided software and devices to plan and draw the soft/hard copies of a material.

A User Interface designer designs the screens that users go through while surfing a website.

To improve their written content and improve their portfolio, they can use the numbered steps above.

Learn more about UI Designers here:

brainly.com/question/898119

5 0
2 years ago
Suppose you have a two-stock portfolio consisting of Apple and Tesla stock. The portfolio weight of Apple is 25% and the rest is
iren [92.7K]

Answer:

Standard deviation = 47.69% (Approx)

Explanation:

Given:

Portfolio of Apple stock w1 = 25% = 0.25

Portfolio of Tesla stock w2 = 75% = 0.75

Standard deviation return Apple σ1 = 35% = 0.35

Standard deviation return Tesla σ2 = 60% = 0.60

Correlation coefficient ρ12 = 0.22

Find:

Standard deviation

Computation:

Standard deviation = √w1²σ1² + w2²σ2² + 2w1σ1w2σ2ρ12

Standard deviation = 0.4769

Standard deviation = 47.69% (Approx)

4 0
3 years ago
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