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RideAnS [48]
3 years ago
13

Allegheny Company ended 2015 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $58,000 and $2,700, res

pectively. During 2016, Allegheny wrote off $4,800 of Uncollectible Accounts. After aging its receivables, Allegheny estimates that the ending Allowance for Doubtful Accounts balance should be $4,400. What will Allegheny report as Uncollectible Accounts Expense on its 2016 income statement?
Business
1 answer:
Nady [450]3 years ago
6 0

Answer:

$6,500

Explanation:

Allowance for doubtful accounts is a reduction in the total amount of accounts receivable given in the company´s balance sheet. Such an allowance is actually and estimate from the management of the accounts receivables that it doesn´t expect to receive.

Ecuation:

Adjustment =  - Beginning balance + Write offs + Ending balance

Adjustment = ($2,700) + $4,800 + $4,400

Adjustment =  $6,500

The estimation of the write off from the previous year must be discounted, the added the write off registered during the year plus the estimate at the end of the period.

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A stock has an average expected return of 10.8 percent for the next year. The beta of the stock is 1.22. The T-Bill rate is 5% a
uranmaximum [27]

Answer: 4.7%

Explanation:

Expected return is calculated as:

= Risk free return + Beta ( Market risk premium)

10.8% = 5% + (1.22 × Market risk premium)

10.8% - 5% = 1.22market risk premium

5.8%/1.22 = market risk premium

Market risk premium = 0.058/1.22

Market risk premium = 0.047

Market risk premium = 4.7%

7 0
3 years ago
Examine the relationship between total spending by government and consumers in a nation and the location of the countries gdp on
Vanyuwa [196]

Answer and Explanation:

  • Consumer as well as government overall expenditure seems to be a significant determinant of economic growth during a market. Unless the overall spending increases, the demand changes positively.
  • Hence, just before the total individual and corporate expenditure in something like a firm increases, it demonstrates that perhaps the country's affairs cycle is going to expand, and then when total expenditure drops significantly, it illustrates that the financial sector's business period is going via compression.

So that it is the right answer.

5 0
3 years ago
“In fact, production theory is much simpler than consumption theory because the output of a production process is generally obse
laila [671]

Answer:

The given statement 'In fact,...observable' conveys the idea that <u>it is comparatively convenient and simple to calculate the amount or quantity of goods that are being produced within a firm, territory, or country to determine the economic worth directly</u>. On the other hand, estimating the amount or quantity of goods consumed by the people across a region or country is difficult and can not be observed directly. However, the latter is given more significance and determined more usually through calculating the expenditure made by the consumers depending on their choices and within their income constraints and these are the primary factors that affect the economic growth or development while the production theory lays emphasis on the maximization of profit.

6 0
3 years ago
Property rights, such as copyright law, are enforced by the legal system. explain why protecting property right is essential to
Wittaler [7]
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so the answer would be C. because a market economy relied on the free exchange of goods and services without rules.
7 0
3 years ago
Read 2 more answers
During the initiation phase, what does project selection help to do
Strike441 [17]

Answer:

During the initiation phase, what does project selection help to do?

The initiation phase entails the starting point of the project, project selection comes in after the scope, objectives and how it would be delivered has been defined thoroughly. Project selection helps to make decision to know when the project would be ready for delivery, also the format of execution would be known, furthermore, any deviation from the initiation would be detected early and corrected if there is any

Explanation:

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3 years ago
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