Answer:
Jillian's annual economic profit on the printing business is $6,000
Explanation:
Cost of ink = $2000/month = $2000×12/year = $24,000/year
Annual rent = $30,000
Annual salary of employees = $60,000
Total annual expenditure = $24,000 + $30,000 + $60,000 = $114,000
Annual revenue = $120,000
Annual economic profit = annual revenue - annual expenditure = $120,000 - $114,000 = $6,000
Answer:
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Explanation:
Answer:
a. Debit Allowance for doubtful debt $4,398
Credit Accounts receivable $4,398
Being entries to write off receivable due from Madonna Inc.
b. $739,480 before and after the write-off
Explanation:
When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.
To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.
The realizable value of accounts receivable before the write off is the net of the accounts receivable and the allowance for doubtful debt
= $762,000 - $22,520
= $739,480
This amount remains the same after the write off as the write off will reduce the balances in both the allowance for doubtful debt account and accounts receivable.
Answer:
$3,799
Explanation:
The total bill amount is
Before that The computation of the fixed cost and the variable cost per minute by using high low method is computed
Variable cost per minute = (High bill cost - low bill cost) ÷ (High minutes - low minutes)
= ($4,500 - $2,630) ÷ (480 - 160)
= $1,870 ÷ 320
= $5.84
Now the fixed cost equal to
= High bill cost - (High minutes × Variable cost per minute)
= $4,500 - (480 × $5.84)
= $4,500 - $2,803
= $1,697
Now the total bill would be
= Fixed cost + expected minutes × variable cost per minutes
= $1,697 + 360 × $5.84
= $1,697 + $2,102
= $3,799
Answer:
$36,906
Explanation:
The file attached shows a table that explains very well the solution to the problem.
