Answer:
d.No effect on the expenses of the current period.
Explanation:
In the case when the credit balance of the allowance for doubtful debt more than the bad debt amount i.e. written off
So the entry for writing off against the allowance would result in no effect on the expense for the present period
As the bad debt expense is debited and the allowance for doubtful debt would be credited therefore the option d is correct
<span>The contractual standard for product safety and liability that says the buyer chose to make the purchases and knows the each purchase involves informed consent is often referred to as the standard of caveat emptor. This is simply a warning that lets the buyer know and understand the product is sold as is and is subject to all defects. Basically, another way of saying buyer be ware.</span>
Answer:
a) Share price of company is $28.20.
b) So value of unlevered firm is $4.512 million.
Explanation:
a.
Share price = Value of debt / (160,000 - 110,000)
= $1,410,000 / 50,000
= $28.20
Share price of company is $28.20.
b.
VAlue of all equity firm = Number of share outstanding × Price per share
= 160,000 × $28.20
= $4.512 million
Value of levered firm is $4.512 million.
Since tax rate is zero, so value of levered firm equal to value of unlevered firm.
So value of unlevered firm is $4.512 million.
<span>Yes
because the AICPA standard for due care does not require CPAs to be infallible.
Since the definition of infallible means incapable of making a mistake. Which
this is not necessarily true. CPAs are capable of making mistakes and as long
as they performed their work with professional due care then they cannot be
held accountable for mistakes that may have happened. </span>
Lena makes $45 profit.
Extra information:
The amount of profit Lena makes is 3/4th of the profit Joe makes, seeing as when Joe makes $4 profit, Lena makes $3 and $3 is 3/4th of $4. Therefore, when Joe makes a profit of $60, Lena makes a profit of (60 x 3/4) $45.
