In terms of soil behavior in earthquakes, building codes classify a construction site

Lin’s Dairy uses the aging approach to estimate bad debt expense. The ending balance of each account receivable is aged on the b

Nesterboy [21]

What amount should be recorded as Bad Debt Expense for the current year?
Not yet due:
22,000
Estimated Percentage Uncollectible: 3%
Estimated Amount Uncollectible: 660

Up to 120 days past due:
6500
Estimated Percentage Uncollectible: 14%
Estimated Amount Uncollectible:
910

Over 120 days past due:
2800
Estimated Percentage Uncollectible: 34%
Estimated Amount Uncollectible: 952

Estimated Balance in allowance for doubtful accounts: 2522

Current balance in allowance for doubtful accounts: 1200

Bad Debt Expense for the Year: 1322

4 0

2 years ago

A store offers two payment plans. under the installment plan, you pay 25% down and 25% of the purchase price in each of the next

Ann [662]

Answer

a-1 . The Present Value of the installment plan is $94.38.

We calculate the PV of $25 for each of the three following years with the following formula:

$PV_{Annuity} = Constant Payment * PVIFA_{0.04,3}$

where

PVIFA = Present Value interest factor of an annuity of $1 at 4% for 3 years.

$PVIFA_{0.04,3} = 2.77509103$

We can ascertain this in excel by using the syntax : =pv(0.04,3,-1).

In this syntax, 0.04 is the interest rate, 3 is number of periods and since the annuity is $1 we write 1. We need to put in -1 because otherwise, we'll get the answer as a negative number. This is because excel treats any Present Values as outflows, and records them as negative.

Substituting the values above in the preceding equation we get,

$PV_{Annuity} = 25 * 2.77509103$

$PV_{Annuity} = 69.3772758$

In order to find the Present Value of the installment plan, we need to add the down payment of $25. So,

$PV_{instalment} = $25 + 69.3772758$

PV of instalment = $94.38

a-2. We get a 6% discount when we pay in full, so the purchase price of the product becomes:

$Purchase price = 100 - (100*0.06)$

$Purchase price = $94 (100 - 6)$

Since the purchase price of the pay in full plan is lesser than that of the installment plan, the pay in full plan is a better option.

b-1. The Present Value of the installment plan is $90.75.

Since the first instalment falls due only after one year, we calculate the PV of $25 each of four years with the following formula:

$PV_{Annuity} = Constant Payment * PVIFA_{0.04,4}$

where

PVIFA = Present Value interest factor of an annuity of $1 at 4% for 4 years.

$PVIFA_{0.04,4} = 3.62989522$

We can ascertain this in excel by using the syntax : =pv(0.04,4,-1).

Substituting the values above in the preceding equation we get,

$PV_{Annuity} = 25 * 3.62989522$

$PV_{Annuity} = 90.7473806$

b-2. In this case, the PV of the pay in full plan remains at $94 while that of the instalment plan falls to $90.75. Since the PV of the Instalment plan is lower, we'll choose the instalment plan.

6 0

3 years ago

A cost which remains constant per unit at various levels of activity is a:

dlinn [17]

Variable cost remains constant per unit at various levels of activity

3 0

4 years ago

Vin diesel owns the fredonia barber shop. he employs 6 barbers and pays each a base rate of $1,310 per month. one of the barbers

Ugo [173]

To find the fixed cost, we need add all costs that do not change with the number of haircuts. These are the salaries of the barbers and the manager bonus, the advertisement fees, rent and the magazines. We also have the standard part of the utility payment, the 170$. Those add up to:
6*1310+520+280+980+20+170=9830$. We also have regarding the variable costs:
The utilities variable part are included since they depend on haircuts, barber supplies and the base rate of each barber per haircut. Hence those are:
(5.90+0.38+0.27 per haircut)=6.55$ per haircut

6 0

3 years ago

Movie studios use tracking studies in which prospective moviegoers are asked questions about an upcoming film release to help th

Grace [21]

Answer:

This is an example of survey or marketing research.

Explanation:

For the movie studios to use tracking studies in which moviegoers are asked questions about their thoughts and opinion in a new movie, it is called survey. Part of the aim could be for criticism of their works, revenue forecast, impact of the movie on the society or their thought on the theme of the movie.

6 0

4 years ago