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Bogdan [553]
3 years ago
7

The existing balance in Allowance for Doubtful Accounts is considered in computing bad debts expense in the A. direct write-off

method. B. percentage of receivables basis. C. percentage of sales basis. D. percentage of receivables and percentage of sales basis.
Business
1 answer:
AlexFokin [52]3 years ago
8 0

The correct answer is choice b - the percentage of receivables basis.

When an accountant is calculating the bad debts expense they will take into account the balance in the Allowance for Doubtful Account when they are calculating on the percentage of sales basis.

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The quantity theory of money is a theory of how A) the money supply is determined. B) interest rates are determined. C) the nomi
meriva

Answer:

C) the nominal value of aggregate income is determined

Explanation:

The quantity theory of money states that nominal aggregate income is determined by money supply. It is assumed that money velocity is constant in the short run and so would not impact nominal aggregate income.

The quantity theory of money is obtained from the equation of exchange which is:

(Money supply × velocity ) = (price × agregrate output)

Dividing both sides by velocity gives,

Money supply = (1/velocity) × ( price × agregrate output)

It is assumed velocity is constant, therefore,

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I hope my answer helps.

All the best

5 0
3 years ago
The rate on T-bills is currently 5%. P. Tree Company stock has a beta of 1.69 and a required rate of return of 15.4%. According
Musya8 [376]

Answer:

11.15%

Explanation:

Given that

Risk free rate of return= 5%

Beta = 1.69

Expected rate of return = 15.4%

As per capital asset pricing model

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Market rate of return = 11.15%

8 0
3 years ago
Your interest rate on your loan with the credit company can go up big time if you make late payments,or go over your credit limi
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3 0
3 years ago
The following transactions were selected from the records of OceanView Company:
Bezzdna [24]

Answer:

$19,380

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The computation of the net sales for the two months is shown below:

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And from July 20 sale no sales discounts is eligible as it is exceeded than 10 days  

3 0
3 years ago
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4 0
2 years ago
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