Answer:
the bad debt expense is $900
Explanation:
The computation of the bad debt expense is shown below:
bad debt expense is
= Written off amount + estimated uncollectible amount at the year end
= $650 + $250
= $900
We simply added the above two items so that the amount of the bad debts for the first year could come
Hence, the bad debt expense is $900
Answer:
$64,000
Explanation:
If the policy only covered $80,000 and it also had a coinsurance of 80%, then the insured ill receive: $80,000 x 80% = $64,000
The purpose of coinsurance is to lower the premiums by sharing the risks between the insured and the insurance company. In this case, the insured shares 20% of any risks that the property might suffer and the insurance company covers the remaining 80%. The higher the percentage of the coinsurance, the lower the premium, but the risk for the insured increases.
well... this is a statment not a question so it doesnt really make snce but yes you should research the company
Answer:
The answer is: $51.695,00
Explanation:
To calculate the present value you need to use the Net Present Value. The NPV is the difference between the present value of cash inflows and the present value of cash outflows over a period of time.
The formula is:
n
<h3>NPV= ∑ Rt/(1+i)^t</h3>
t-1
where:
R t =Net cash inflow-outflows during a single period t
i=Discount rate or return that could be earned in alternative investments
t=Number of timer periods
In this exercise:
NPV= [16500/(1,079^1)]+[25700/(1,079^2)]+[18000/(1.079^3)]
NPV= $51695