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faltersainse [42]
4 years ago
6

Nichols Company uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $2

00,000 and credit sales are $1,000,000. Management estimates that 4% of accounts receivable will be uncollectible. What adjusting entry will Nichols Company make if the Allowance for Doubtful Accounts has a credit balance of $2,000 before adjustment?
Business
1 answer:
lora16 [44]4 years ago
3 0

Answer:

bad debt expense 6,000 debit

allowance for uncollectible amounts 6,000 credit

Explanation:

expected allowance balance:

account receivable x expected uncollectible amount

200,000 x 4% = 8,000

currently the allowance balance is 2,000

so the amount of the adjustment will be to move the balance to 8,000 from 2,000:  adjusting entry for 6,000

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o-na [289]

Answer: B. False

Explanation:

Even in the case of take over or mergers or acquisition, a shareholder remains part of the organization because the shareholder still has the shares within the company and therefore could play a decisive role in the voting.

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3 years ago
A not-for-profit hospital pays $150,000 interest on its bonds outstanding. The bonds were issued to finance construction of a ne
N76 [4]

Answer:

c. operating activities

Explanation:

Operating activities -

It is the activity of the functions of the business which is directly linked via providing the respective services and goods in the market , is known as operating activities .

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Hence , from the question , the correct term according to the given data is c. operating activities .

4 0
3 years ago
If country abc can produce a unit of good 1 with fewer resourceswith fewer resources than can country​ xyz, it is correct to say
Sliva [168]
Country ABC shows that it has ABSOLUTE ADVANTAGE over Country XYZ. 

The absolute advantages is proven when Country ABC was able to produce a unit of good 1 with fewer resources than Country XYZ.

Absolute advantage is different from comparative advantage. 

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5 0
4 years ago
Which statement describes the foreign exchange rate? A. the rate at which currency is spent in a foreign country B. the rate at
11Alexandr11 [23.1K]

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c

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7 0
3 years ago
Compute the modified duration of a 9% coupon, 3-year corporate bond with a yield to maturity of 12%.
iragen [17]

Answer:

C. 2.45

Explanation:

Pv of cash flow

1000x9%/(1+0.12)

= 90/1.12

= 80.36

Weight = 1

Weighted pv of cash flow = 80.36

Pv of cash flow

= 1000x9%/(1+0.12)²

= 90/1.2544

= 71.75

Weight = 2

Weighted pv of cash flow = 71.75x2

= 143.5

Pv of cash flow

= (1000+1000*9%)/(1+0.12)³

= 1090/1.404928

= 775.84

Weight = 3

Weighted pv of cash flow

= 775.84x3

= 2327.52

Total pv of cash flow = 80.36+71.75+775.84

= 927.95

Total weight of cash flow pv =

80.36+143.5+2327.52

= 2551.38

Duration = weighted pv/pv

= 2551.38/927.95

= 2.75

Modified duration =

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= 2.75/1.12

= 2.45

6 0
3 years ago
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