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3 years ago

Which of the following accounts is debited when a company factors its accounts receivable?

Business

1 answer:

kiruha [24]3 years ago

5 0

The answer is option c Accounts receivable.

Explanation:

The Accounts receivable is the following accounts that is debited when a company factors its account receivable.

Based on the allowance method bad debts expense is debited when the account is uncollectable and must be written.

The net realizable value of receivables is the same both and after an account has been written off. The receivables are reported on the balance sheet as the cash amount produced by the customer.

When the balance of accounts receivable denotes the amount gained by customers, the amount reported on the balance sheet is shown at their cash realizable value.

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4 years ago

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Nitella [24]

Answer:

The right option is (a)

Explanation:

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3 years ago

Incite Co. has a 30 percent tax rate. Its total interest payment for the year just ended was $43.4 million. What is the interest

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Answer: $13,020,000

Explanation:

Given that,

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= $13,020,000

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3 years ago

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Receivables monitoring

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3 years ago

As part of a valuation analysis, you have identified two comparables: KLA Tencor (KLA) and Lam Research (LAM). KLA has company v

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Answer:

The correct option is 20 and 12. That is, the P/E ratios for KLA and LAM should be, respectively: 20 and 12.

Explanation:

The price-earnings (P/E) ratio can be calculated using the following formula:

P/E ratio = Market value of equity / Net income ............... (1)

From the question. we hav:

KLA market value of equity = $8,000

KLA net income = $400

LAM market value of equity = $6,000

LAM net income = $500

Using equation (1) and the above information, we have:

P/E ratios for KLA = $8,000 / $400 = 20

P/E ratios for LAM = $6,000 / $500 = 12

Therefore, the correct option is 20 and 12. That is, the P/E ratios for KLA and LAM should be, respectively: 20 and 12.

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3 years ago