Answer:
The bad debt expense amounts to $ 10,680
Explanation:
The bad debt expenses for the year 2017 is computed as:
As the percent of sakes method is used for estimating the bad debt expense. Therefore, it is computed as:
Bad debt expense = Net Credit Sales × Estimate Percent
where
Net credit sales amounts to $178,000
Estimate percent is 6%
So, putting the values above:
Bad debt expense = $178,000 × 6%
Bad debt expense = $10,680
Therefore, the bad debt expense amounts to $10,680
Full question(find attached) :
Faiz would like to illustrate the commission savings delivered by a payment app compared with a credit card. He decides to use a company that has a monthly sales volume of $50,000 delivered over 100 equal transactions.
From the information available, what is the difference between the payment app with the lowest charge, compared with a credit card charge?
A) $575
B) $1200
C) $1050
D) $480
E) $1237
Answer and Explanation:
Credit card processing firms charge an average of 3.5% and a flat fee of about 20 cents so we would make our comparison on this basis:
Since Faiz decides to use a company that has a monthly sales volume of $50,000 delivered over 100 equal transactions
The customer would pay $50000/100= $500 per instalment
Given the information I'm the table from question Instant wallet charges 3.5% +$0.20 for transactions lower than $1500
= 0.035*$500+$0.20=17.5+0.20=$17.7
An average credit card processing firms would charge :
0.035*500+$0.35=17.5+0.35= $17.85
Therefore instant wallet is cheaper and would save a customer =$17.85-17.7= $0.15
Answer:
A.
Explanation:
The Contribution Margin Ratio is the ratio of contribution margin to sales revenue.
Contribution Margin Ratio = contribution margin / sales revenue
Contribution Margin = sales price - variable cost
If the sale price is increasing, and the variable cost remains the same, the contribution margin is going to increase.
Break even point shows the amount of sales volume where the total cost is equal to the company´s full income. The point where total costs are equal total revenue is known as the break even point.
If sales increase, and the costs remains the same, the break even point is going to decrease.
Answer: Option B
Explanation: In simple words, turnkey operations refers to those projects which are related to the production of any good or service . These projects are intended to be sold or leased out once they are complete.
Thus, such kind of projects are usually made for the Govt. and after a long duration of completion the producer sells it to the govt.
Thus, the correct option is B
