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Tanzania [10]
3 years ago
8

Using the percentage-of-receivables method for recording bad debt expense, estimated uncollectible accounts are $57000. If the b

alance of the Allowance for Doubtful Accounts is an $11400 debit before adjustment, what is the balance after adjustment?
Business
1 answer:
just olya [345]3 years ago
4 0

Answer:

The balance after adjustment is $57,000

Explanation:

Bad debt expense is the company's expense due to the inablity if it's debtor to pay their owed amount. Bad debts expense is also referred to as uncollectible accounts expense. The estimated estimated uncollectible accounts given in the question is $57,000. So the balance after adjustment of the allowance for doubtful accounts would be $57,000 debit.

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SNC is considering evaluating the payment profile of its customer base, especially focusing on customers who are chronically del
worty [1.4K]

Answer:

I would decline the proposal to drop Super Sports Centers.

Explanation:

In order to be able to accept or decline dropping SSC as a customer we must first calculate the cost of being paid after 200 days.

If you analyze it from an accounting point of view, dropping SSC will decrease your operating profits by $130,000 and that might result in your firm not being able to make a profit anymore.

In my opinion, the cost analysis is not complete because in order to calculate EBIT your are simply subtracting COGS from revenue (which is correct but incomplete). When you make important business decisions, you must determine which is the least of evils. Is reducing your DSO so important that you will risk going bankrupt? How much does financing SSC costs? Since SCC takes so long to pay, you should probably record the present value of the sale (similar to a non-interest bearing note).

You must also remember that if your total sales decrease by 20%, your COGS will increase since fixed costs per unit will increase. Probably the best way to understand this is to analyze the situation like a special order sale. SNC should probably calculate their manufacturing (or retailing) costs without SSC and that way they will be able to determine the real advantage or disadvantage of having SSC as a client.

4 0
3 years ago
At the beginning of 2018, Artichoke Academy reported a balance in common stock of $168,000 and a balance in retained earnings of
frozen [14]

Answer:

increase in retained earnings = $48,000 - $11,800 = $36,200

increase in common stock = $58,000

<h2>Balance sheet</h2>

Assets:

Assets  

Cash $54,400  

Supplies $12,700  

Prepaid rent $33,000  

Land $290,000

Total assets                                                     $390,100

Liabilities

Accounts payable $15,600

Utilities payable $6,000

Salaries payable $5,300

Notes payable $33,000

Total liabilities                              $59,900

Equity

Common stock $226,000

Retained earnings $104,200

Total equity                                $330,200

Total liabilities + equity                                   $390,100

<h2>Statement of stockholders' equity</h2>

Common stock balance Jan. 2018              $168,000

Retained earnings balance Jan. 2018          $68,000

Net income                                                  <u>  $58,000</u>

Sub-total                                                       $294,000

Common stocks issued                                $58,000

Distributed dividends                                  <u>  ($11,800)</u>

Subtotal                                                        $330,200

Common stock balance Dec. 2018           $226,000

Retained earnings balance Dec. 2018      $104,200                      

7 0
2 years ago
Nathan is a sales rep who, based on last year, averaged $2,200 of monthly commission before taxes. He should include
Ray Of Light [21]

False, Nathan should not include this in his budget.

When budgeting, there are several things that one should include such as:

  • net income
  • debt repayments
  • food
  • utilities
  • insurance
  • savings and others

Notice how one should include their net income not their gross income. Net income is what comes after tax and this is the disposable income that a person has and can spend from.

In conclusion, Nathan should only include his net income and as this commission is before taxes, he should not include it.

<em>Find out more at brainly.com/question/17474938.</em>

7 0
3 years ago
A firm in a perfectly competitive market has a fixed cost of $1,000 and a variable cost of $500 while it is earning the revenue
grin007 [14]

Answer:

Firm should not shut down, as it is able to cover its Average Variable Cost

Explanation:

Perfect Competition firms in Short Run : The firms produce even if their average revenue (price) < their average total costs (AC). They continue production until Average variable cost (AVC) ≥ per unit price (P) i.e average revenue (AR). This is called Shut Down Point. P lower beyond AVC implies that firm won't continue even in short run.

Given : Variable Cost (VC) = 500 ; Revenue (R) = 510

Average Variable Costs & Average Revenue are variable costs & revenue, per unit quantity. AVC = VC / Q ; AR (P) = R / Q

R i.e 510 > VC i.e 500

So, R/ Q i.e AR is also > VC / Q i.e AVC

Since AVC > AR (P), firm should not shut down

8 0
3 years ago
In response to an upturn in the economy, entrepreneurs seek to expand their businesses. a. What will happen to nominal interest
kicyunya [14]

a. Nominal interest rates Increase and Aggregate demand Decrease

b. New Fed policy Buy bonds

Explanation:

When contemplating unemployment, the nominal interest rate applies to the rate of interest. Net may, without taking into consideration any commissions or compounded interest, be related to the advertised or reported interest rate of a loan.

The aggregate demand (AD) for finished commodities and facilities in the market at a certain time is aggregated. Strong demand is often named, but this term is often used in many ways. This is the market for a country's gross national product.

When the Fed sells debt in the international market, the world economy money supply is expanded by exchanging debt for cash from the general public. Instead, when the Fed sell bonds, the supply of money is reduced by cash being pulled out of the market in return for bonds. The Fed also sells bonds.

7 0
3 years ago
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