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d1i1m1o1n [39]
3 years ago
6

At the end of the current year, Accounts Receivable has a balance of $430,000; Allowance for Doubtful Accounts has a credit bala

nce of $4,000; and sales for the year total $1,940,000. Bad debt expense is estimated at 1/4 of 1% of sales. 1. Determine the amount of the adjusting entry for uncollectible accounts. $ 2. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable $ 430,000 Allowance for Doubtful Accounts $ Bad Debt Expense $ 3. Determine the net realizable value of accounts receivable.
Business
1 answer:
Rudiy273 years ago
8 0

Answer:

1. Amount of the adjusting entry for uncollectible accounts:

$4,850

Debit Bad Debts Expense $4,850

Credit Allowance for Doubtful Accounts $4,850

To record bad debts expense for the year.

2. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense:

Accounts Receivable:

Balance as per question = $430,000

Allowance for Doubtful Accounts:

Balance as per question = $4,000

Bad Debt Expense -          $4,850

Adjusted balance              $8,850

Bad Debt Expense:

Adjustment            $4,850

3. The net realizable value of Accounts Receivable:

Accounts Receivable balance  $430,000

less Allowance for Doubtful         $8,850

Net Realizable Value                 $421,150

Explanation:

a) Bad Debt Expense = ($1,940,000 x 1%)/4 = $4,850

b) The amount of the adjusting entry for uncollectibles is the bad debt expense of $4,850.

c) The Allowance for doubtful accounts will increase by $4,850 to $8,850.

d) The net realizable value of the accounts receivable is the difference between the accounts receivable balance and the allowance for doubtful accounts.  This is the estimated value that the company expects to realize after considering the probability of uncollectibles.

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ki77a [65]

Answer:

A) $83

Explanation:

First, find aftertax OCF per year

aftertax OCF = (Operating benefit - depreciation)*(1-tax) +depreciation

Depreciation per year = 10,000/5 = 2,000

Tax = 34%

aftertax OCF per year = (3,000 - 2,000)*(1-0.34) + 2,000

= 660 +2,000

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Next, find the PV of the aftertax OCF per year. It is an annuity;

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N = 5

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FV = 0

then CPT PV = 10,083.493

Subtract the initial cost of the machine to find the Net Present Value (NPV);

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NPV = $83.493

8 0
3 years ago
A local regulator has calculated the average cost of production for the public water utility. Theregulator has allowed an adjust
Varvara68 [4.7K]

Answer:

A. cost-plus regulation

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It is usually carried out by the government.

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3 years ago
when a person uses face-to-face presentations to promote goods and services, he is said to be using as a sales technique.
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Personal selling is the face-to-face presentation and promotion of products and services.

<h3>What is personal selling?</h3>

Personal selling, commonly referred to as face-to-face selling, is a sales technique where a single salesperson tries to persuade a consumer to purchase a product. It is a type of advertising where the salesperson employs their knowledge and talents in an effort to close a deal.

<h3>What do you mean by sales technique?</h3>

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6 0
1 year ago
The neoclassical view holds that long-term expansion of potential GDP due to _______________________ will determine ____________
boyakko [2]

Answer:

1.  economic growth;

2.  the size of the economy

Explanation:

According to the neoclassical standpoint on issues relating to macroeconomics, it is believed that, over a long period of time, the economy will vary around its potential GDP and its natural rate of unemployment.

Therefore, the size of the economy is defined by potential GDP, and wages and prices will adjust in an intelligent manner so that the economy will move back to its potential GDP level of output.

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4 0
3 years ago
Klingon Widgets, Inc., purchased new cloaking machinery four years ago for $8 million. The machinery can be sold to the Romulans
alisha [4.7K]

Answer and Explanation:

The computation is shown below:

But before that we need to find out the current asset which is

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$246,000 = Current assets -$790,000

So, the current assets is $1,036,000

Now the book value of Klingon’s total assets is

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= $1,036,000 + $6,000,000

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The sum of market value of NWC and fixed assets is

= Market value of net working capital + market value of fixed assets

= $1,130,000 + $7,400,000

= $8,530,000

7 0
3 years ago
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