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GalinKa [24]
3 years ago
14

In regards to credit, what does capacity mean?

Business
1 answer:
ch4aika [34]3 years ago
3 0

Answer:

The answer is (B) your perceived ability to repay your loans and debt.

Explanation:

Credit capacity refers to the maximum amount of money that an individual or entity can borrow from a loan provider. At an individual level, this amount might be calculated through the person’s current salary, mortgages and other loans the person have, and her or his savings and investments. At an organizational level, considerations might be current and projected revenue and profits, debts that the organization have, as well as past ability to pay the loans that the organizations have received previously.

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At the beginning of the current period, Sheridan Company had balances in Accounts Receivable of $203,500 and in Allowance for Do
Dmitrij [34]

Answer:

Sheridan Company

a. Debit Accounts receivable $739,000

Credit Sales revenue $739,000

To record sales of goods on account.

Debit Cash $813,450

Credit Accounts receivable $813,450

To record collections from customers.

b. Debit Allowance for Uncollectible Accounts $7,198

Credit Accounts receivable $7,198

To record the write-off of accounts for the period.

c. Debit Accounts receivable $2,978

Credit Allowance for Uncollectible Accounts $2,978

To record the recovery of the uncollectible account.

d. Debit Bad Debts Expense $22,410

Credit Allowance for Uncollectible Accounts $22,410

To record bad debt expense for the period.

Explanation:

a) Data and Analysis:

a. Accounts receivable $739,000 Sales revenue $739,000

b. Cash $813,450 Accounts receivable $813,450

c. Allowance for Uncollectible Accounts $7,198 Accounts receivable $7,198

d. Accounts receivable $2,978 Allowance for Uncollectible Accounts $2,978

e. Bad Debts Expense $22,410  Allowance for Uncollectible Accounts $22,410

Allowance for Uncollectible Accounts

Account Titles          Debit        Credit

Beginning balance                   $8,620

Accounts receivable $7,198

Accounts receivable                  2,978

Bad debts expense                  22,410

Ending balance        26,810

Totals                    $34,008  $34,008

5 0
3 years ago
Major reasons for disclosure of deferred income tax information is (are)
Karolina [17]

Answer:

d. All of these answer choices are correct.

Explanation:

Is important to match the expenses with the revenues they are related. If for tax purposes we can deduct a full equipment value in one year. This means we are goung to pay higher income taxes in the future as we don't have the depreciation expense available for taxes porpuses.

The use of deferred incoem tax will be useful to knwo how much are the actual cash obligation and the expected value of the future cash obligations

6 0
3 years ago
Torino Company has 2,800 shares of $50 par value, 6.5% cumulative and nonparticipating preferred stock and 28,000 shares of $10
Feliz [49]

Answer:

The cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is  $10,200.

Explanation:

In order to calculate the cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is , we have to make the following calculations.

First, we have to calculate the Annual preferred dividend = (2800*50*6.5%) = $9,100

Hence, First year preferred dividend = $9,100-$8,000 = $1,100

Finally, if we make $1,100+$9,100 = $10,200 and so this will be the cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders.

8 0
3 years ago
When parents or eligible students request inspection and review of education records, federal law stipulates that the requested
zloy xaker [14]

The period of time that is requested for inspection and review of education records, according to federal law is 45 days.

<h3>What is an education records review?</h3>

This is a review of the academic standing of a student. The reason why the review is needed is probably because the student wants to apply for a new school.

According to federal law, when the request is received, the records must be provided within 45 days.

Read more on education records here: brainly.com/question/24911873

8 0
2 years ago
Carr Corporation retires its $100,000 face value bonds at 105 on January 1, following the payment of interest. The carrying valu
Brrunno [24]

Answer: A. debit of $3,745 to Premium on Bonds Payable.

Explanation:

The carrying value of the bonds at redemption date is $103,745.

The bonds retired however, had a face value of $100,000.

The company therefore paid a premium on these bonds which is:

= 103,745 - 100,000

= $3,745

This amount will be debited to the Premium on Bonds Payable account.

4 0
3 years ago
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