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Alex777 [14]
3 years ago
7

On December 31, after making a concerted effort, management determines that it will not be able to collect the $1,200 owed to it

by its customer Acme, Inc. The company uses the direct write-off method to account for uncollectible accounts. Prepare the necessary December 1 journal entry to write off this $1,200 uncollectible account journal entry
Business
1 answer:
zvonat [6]3 years ago
4 0

Answer:

See explanation section

Explanation:

To record the journal entry to write off the uncollectible account according to the direct write-off method, we have to use bad dad expanse instead of an allowance account.

December 31         Bad Debt Expense           Debit     $1,200

                              Account receivable - Acme, Inc.      Credit    $1,200

Note: As the company did not get the money from the Acme, Inc., They treated the expense as irrecoverable.

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The common stock of Detroit Engines has a beta of 1.34 and a standard deviation of 11.4 percent. The market rate of return is 11
stealth61 [152]

Answer:

The firm's cost of equity is C. 14.05 percent

Explanation:

Hi, we need to use the following formula in order to find the cost of equity of this firm.

r(e)=rf+beta(rm-rf)

Where:

r(e) = Cost of equity

rf = risk free rate

rm = Market rate of return

Everything should look like this.

r(e)=0.04+1.34(0.115-0.04)=0.1405

So, this firm´s cost of equity is 14.05%

Best of luck

6 0
3 years ago
Which of the following statements are true? Check all that apply. In this labor market, a minimum wage of $9.00 is binding. In t
soldier1979 [14.2K]

Answer:

<em>1.  In this labor market, a minimum wage of $9.00 is binding : </em><em>FALSE</em>

<em>2. In the absence of price controls, a shortage puts upward pressure on wages until they rise to the equilibrium : </em><em>TRUE</em>

<em>3. If the minimum wage is set at $12.50, the market will not reach equilibrium : </em><em>TRUE</em>

<em>4. Binding minimum wages cause frictional unemployment : </em><em>FALSE</em>

Explanation:

<em><u>Question has been attached here</u></em>

Unemployment is the term used to define those who are willing and are actively seeking work but cannot find any. A minimum wage is a price control, in the form of a price floor imposed by government legislation in order to protect laborers from low wages. Paying anything below the minimum wage is against the law.

<em>1. In this labor market, a minimum wage of $9.00 is binding : </em><em>FALSE</em>

A minimum wage is binding only if it is set above the equilibrium price. In this scenario, the equilibrium price is at $12. Hence, $9 is not binding since a shortage of labor would gradually raise the price to the equilibrium.

<em>2. In the absence of price controls, a shortage puts upward pressure on wages until they rise to the equilibrium : </em><em>TRUE</em>

When there is a shortage in the market, it means that the quantity supplied is higher than the quantity demanded. With any particular commodity such as bread or rice, a shortage creates a rise in price. Just as that, a shortage of workers creates an upward pressure on the price (wage). Since there are no price ceilings, market will reach equilibrium.

<em>3. If the minimum wage is set at $12.50, the market will not reach equilibrium : </em><em>TRUE</em>

As shown in the diagram, the market equilibrium is $12. If the minimum wage was $12.50, there would be a surplus of labor (quantity supplied is higher than quantity demanded). Naturally, this may cause a downward pressure on wages until it reaches $12. However, when a minimum wage is imposed at $12.50, it cannot fall below that level. Thus, the market will not reach the equilibrium.

<em>4. Binding minimum wages cause frictional unemployment : </em><em>FALSE</em>

Frictional unemployment is a type of unemployment that occurs when workers are temporarily unemployed while switching between jobs. It is normal and occurs even in the healthiest of economies. A binding minimum wage is more likely to cause structural unemployment. This occurs when there is a mismatch between the skills of the labor force and the skills expected to be possessed by employers to do a particular job. Hence, even if jobs are available, the laborers are not suited to do them and thus are unemployed.

6 0
3 years ago
Luciana is the owner of a nail salon. Last year, her total revenue was $145,000, her rent was $12,000, her labor costs were $65,
Shtirlitz [24]
The answer would be A.
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Which pharmaceuticals company has decided to expand its vaccine business in the United Kingdom with an investment of £240 millio
Volgvan

Answer:

Which pharmaceuticals company has decided to expand its vaccine business in the United Kingdom with an investment of £240 million?

answer= B.) Serum Institute of India

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2 years ago
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Let's say the intended audience for your historical analysis essay about the legal battle for women's suffrage is a group of civ
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Answer:

In the event that I go to a social equality promotion gathering, I will be an expert in my view to characterize the lawful foundation of the constitution and the nineteenth amendment. I'll give the standard to add alteration to stating "as you most likely are aware" to abstain from misunderstanding with them.I additionally utilize propelled phrasing to present to legal counselors. Let me quickly outline the ladies rights development for secondary school understudies and afterward disclose how to fix it. I additionally utilize less modern words to assist understudies with dodging disarray. In the two gatherings I might want to incorporate the fix procedure in light of the fact that the introduction is proposed and regardless of whether a few gatherings definitely know data, it is a significant piece of the introducing time.

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