Answer:
$5,156
Explanation:
The computation of the uncollectible account expense is shown below:
But for this, first we have to compute the ending balance of allowance that is shown below
Current $82,000 × 1% = $820
0-30 $29,500 × 5% = $1,475
31-60 $7,960 × 10% = $796
61-90 $4,220 × 25% = $1,055
Over 90 $3,900 × 50% = $1,950
Total $6,096
Now the uncollectible account expense is
= $6,096 + $2,770 - $3,710
= $5,156
This is the answer but the same is not provided in the given options
Answer:
<u>discount</u>, <u>the size of the discount increased </u>
Explanation:
As per the interest rate parity theory (IRPT) , the difference between forward and spot rate of a currency is equal to the difference between their respective interest rates.
Forward rate for SGD i.e Singapore dollar means the US Dollars which can be purchased by 1 SGD i.e US Dollars per SGD.
Also, the currency whose interest rate is higher would be at a forward discount whereas the currency with lower interest rate would be at a forward premium. This effect mitigates the possibility of any arbitrage gain.
= Interest rate in USA
= Interest rate in Singapore
As per the given information, FR = SR × 
= Spot Rate × 0.99
when interest rate in Singapore rises and falls in USA.. Let's assume, new interest rates being 3% in USA and 6% in Singapore.
Forward Rate would be, Spot Rate × 
= Spot rate × 0.972
Thus, it can be seen that SGD was at a forward discount at the beginning and with increase in it's interest rates and reduction in US Dollar interest rates, SGD forward discount increased.
Answer:
Gain = $150,000
Explanation:
Given:
Contribution = $200,000
Exchange stock = $300,000
Cash = $50,000
Find:
Gain
Computation:
Gain = Exchange stock + Cash - Contribution
Gain = $300,000 + $50,000 - $200,000
Gain = $150,000
Answer:
a) increasing government spending or cutting taxes
Explanation:
Fiscal polices are polices enacted by the government to achieve certain macroeconomic objectives. There are two types of fiscal policies:
1. Expansionary fiscal policy: These are government policies which involves increasing government spending or cutting taxes. Decreasing taxes increases disposable income and increases consumption spending.
Increasing government spending increases money supply which increases consumption spending.
2. Contractionary fiscal policy: These are government policies which involves decreasing government spending or increasing taxes.
Monetary policy are policies enacted by the Central bank to achieve certain macroeconomic objectives.
I hope my answer helps you
Answer:
A. The company would debit the Allowance account instead of Purchase Returns.
Explanation:
In the management of purchases transactions, a company will maintain several other accounts such as purchase returns and purchases allowance.
Purchases allowance will include allowances such as discount received and other compensations from suppliers. The allowances reduce the net value of the purchases. i.e., when calculating the net purchases, one has to deduct the purchases allowed amount. When the business receives a purchase allowance, the amount will increase the purchases allowance account. The accountant will, therefore, debit that account.
Purchases returns are goods that the company had purchased from suppliers but have returned them for some reason. They could be defective or inappropriate.
