Answer:
A. $2,800
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.
Amount assessed to be uncollectible
= 4% × $90,000
= $3,600
Additional Amount to be allowed for
= $3,600 - $800
= $2,800
This will be posted as debit to bad debt and a credit to allowance for doubtful debts account.
The most likely common of transmission when examining the aids in thailand is heterosexual intercourse. This is where the transmission occurs when the man and woman engage into an unprotected sexual intercourse that causes transmission of sexual fluids, where AIDS can be transmitted.
Answer: Option C is the correct answer
C)Refusal by the purchasing department to approve the vendor.
Explanation: An independent purchasing department need to approve vendors before order can be placesd
Answer:
a. 6.56%
b. 10.62%
Explanation:
Debt-equity ratio=debt/equity
Hence debt=1.2 equity
Let equity be $x
Debt=$1.2x
Total=$2.2x
WACC=Respective costs*Respective weight
a.
8.7=(x/2.2x*13)+(1.2x/2.2x*Cost of debt)
8.7=5.909+(1.2/2.2*Cost of debt)
Cost of debt=(8.7-5.909)*(2.2/1.2)
=5.1167%(Approx)
Hence pretax cost of debt=Cost of debt/(1-tax rate)
=5.1167/(1-0.22)=6.56%(Approx).
b.
8.7=(x/2.2x*Cost of equity)+(1.2x/2.2x*7.1)
8.7=(1/2.2*Cost of equity)+3.8727
Cost of equity=(8.7-3.8727)*2.2
=10.62%
1. False - Dividends reduce retained earnings, retained earnings is an equity account
2. False - Cash is an asset and the normal sign is a debit
3. True
4. True
5. False - Cash increases, receivable decreases, total assets stays the same
6. False - GAAP requires the company be on “accrual basis” and the “matching principle” requires the expense to be recognized
7. False - Revenue recognized when earned
8. True
9. True
10. True