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3 years ago

On December 31, 2017, Jerome Company has an accounts receivable balance of $316,000 before any year-end adjustments.

Business

1 answer:

katovenus [111]3 years ago

5 0

Answer:

The Allowance for Uncollectible Accounts at December 31, 2017 is $10,430

Explanation:

In order to calculate the Allowance for Uncollectible Accounts at December 31, 2017 we would have to make the following calculation:

Allowance for Uncollectible Accounts at December 31, 2017=Estimated Allowance 1-30 days+Estimated Allowance 31-60 days+Estimated Allowance 61-90 days+Estimated Allowance over 90 days

Estimated Allowance 1-30 days=Balance*% Uncollectible

Estimated Allowance 1-30 days=$152,000*1%=$1,520

Estimated Allowance 31-60 days=$87,000*2%=$1,740

Estimated Allowance 61-90 days=$50,000*3%=$1,500

Estimated Allowance over 90 days=$27,000*21%=$5,670

Allowance for Uncollectible Accounts at December 31, 2017=$1,520+$1,740+$1,500+$5,670

Allowance for Uncollectible Accounts at December 31, 2017=$10,430

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The market price of a 10-year, $1,000 bond is $1,158.91. Interest on this bond is paid semiannually and the YTM is 14%. What is

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Answer:

17%

Explanation:

Market price of a bond is the total sum of discounted coupon payment plus par value at maturity. This is a 10-year bond with semi-annual payment so there will be 20 coupon payment in total. Let formulate the bond price as below:

Bond price = [(Coupon rate/2) x Par]/(1 + YTM/2) + [(Coupon rate/2) x Par]/(1 + YTM/2)^2 + ... + [(Coupon rate/2) x Par + Par]/(1 + YTM/2)^20

Putting all the number together, we have

1,158.91 = [(Coupon rate/2) x 1000]/(1 + 7%) + [(Coupon rate/2) x 1000]/(1 + 7%)^2 + ... + [(Coupon rate/2) x 1000 + 1000]/(1 + 7%)^20

Solve the equation, we have Coupon rate = 17%

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John is a temporary accountant hired to take Jim’s place as plant accountant while Jim is on a two-week vacation. John notices t

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Answer:

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Explanation:

The 800 will be a salaries paid to the accountant.

It will have to post:

salaries expense 800 debit

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Answer:

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The consumer price index (CPI) can be used to measure inflation. There are potential problems with this process though that can

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Answer:

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