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Pavel [41]
2 years ago
15

Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $344,000 and credit sa

les are $1,000,000. An aging of accounts receivable shows that approximately 5% of the outstanding receivables will be uncollectible. What adjusting entry will Tanning Company make if the Allowance for Doubtful Accounts has a credit balance of $2,600 before adjustment?
a. Bad Debt Expense 15,600 Allowance for Doubtful Accounts 15,600.
b. Bad Debt Expense 14,100 Allowance for Doubtful Accounts 14,100.
c. Bad Debt Expense 14,600 Allowance for Doubtful Accounts 14,600.
d. Bad Debt Expense 13,600 Allowance for Doubtful Accounts 13,600.
Business
1 answer:
umka21 [38]2 years ago
5 0

Answer:

c. Bad Debt Expense 14,600 Allowance for Doubtful Accounts 14,600.

Explanation:

As for the information provided,

outstanding balance of accounts receivables = $344,000

Also that the uncollectible balance of accounts receivables is estimated = 5% of outstanding balance.

Therefore, balance at year end of allowance for uncollectible shall be = $344,000 \times 5% = $17,200

Provided existing balance of allowance = $2,600

Thus, entry shall be for amounting = $17,200 - $2,600 = $14,600.

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Arcs and Triangles paid an annual dividend of $1.47 a share last month. The company is planning on paying $1.52, $1.60, and $1.6
77julia77 [94]

Answer:

The current market price per share is $14.82

Explanation:

The current price of the stock can be calculated using the DDM or dividend discount model. The DDM values the stock based on the present value of the expected future dividends from the stock.

The following is the formula for the price of the stock today,

P0 = D1 / (1+r)  +  D2 / (1+r)^2  + ... +  Dn / (1+r)^n  +  Terminal value

The terminal value is the cumulative value of all the future dividends calculated when the dividend growth becomes zero or constant. In case the dividend growth becomes zero, like in this case, the terminal value is calculated as follows,

Terminal value = Dividend / r

Where,

  • r is the required rate of return
  • Dividend is the dividend which will remain constant through out the future

So, the price of this stock today is,

P0 = 1.52 / (1+0.11)  +  1.60 / (1+0.11)^2  +  1.62 / (1+0.11)^3  +  

(1.65 / 0.11) / (1+0.11)^3

P0 = $14.82

4 0
3 years ago
The manufacturing overhead budget at Pendley Corporation is based on budgeted direct labor-hours. The direct labor budget indica
postnew [5]

Answer:

Correct option is B) $17.10

Total overhead rate per hour = $17.10

Explanation:

Overhead rates are based on cash outflow, they are not allocated and computed based on non cash items.

Total direct labor hours = 8,900

Thus total variable overhead rate = $5.50

Total cash fixed cost = $133,500 - $30,260 = $103,240

Fixed cost overhead rate = $103,240/8,900 = $11.60

Total overhead cost per hour = Variable overhead + Fixed Overhead = $5.50 + $11.60 = $17.10

5 0
3 years ago
Moringa products corporation had common stock of $820,000 and retained earnings of $1,250,000 on january 1. during the year, $75
blondinia [14]

Based on the beginning retained earnings balance and the net income as well as dividends, the retained earnings balance will be $1,585,500.

<h3>How much are retained earnings on Dec. 31?</h3>

This can be found as:

= Beginning retained earnings + Net income  + dividends paid

Solving gives:

= 1,250,000 + 287,500 + 48,000

= $1,585,500

Find out more on retained earnings at brainly.com/question/25998979.

#SPJ1

5 0
2 years ago
If a company is given credit terms of 2/10, n/30, it should________.
diamong [38]

Answer:

(A) pay within the discount period and recognize a savings.

Explanation:

The given credit terms of 2/10, n/30 means

If the payment is paid within 10 days so 2% discount is given and the total credit period given is 30 days

Suppose we take an example

A buys the merchandise of goods from B for $10,000 on April 1. The payment is doe by A on April 7

So, the net payment is

= $10,000 - $10,000 × 2%

= $10,000 - $200

= $9,800

The $200 shows the discount which A avails and termed as a savings

6 0
2 years ago
Sam was driving when someone ran a stop sign and totaled his car. his car cannot be repaired, so he realizes he's going to have
anzhelika [568]
<span>The stage of the consumer decision making process that is represented is needing recognition. When Sam's car was totaled by someone hitting a stop sign, Sam found out his car could not be repaired therefor he discovered that he needed a new car. This was recognizing the need, which was to replace his vehicle.</span>
6 0
2 years ago
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