Use the formula of the present value of an annuity ordinary.
The formula is
pv=pmt [(1-(1+r/k)^(-n))÷(r/k)]
Pv present value 350
PMT monthly payment 30
R interest rate 0.18
K compounded monthly 12
N number of months?
350=30 [(1-(1+0.18/12)^(-n))÷(0.18/12)]
Solve for n
350/30=[(1-(1+0.18/12)^(-n))÷(0.18/12)]
((350/30)×(0.18/12))-1=-(1+0.18/12)^(-n)
-0.825=-(1+0.18/12)^(-n)
0.825=(1+0.18/12)^(-n)
N=−log(0.825)÷log(1+0.18÷12)
N=12.9 months round your answer to get 13 months
Answer:
Net cash increase is $45000.
Explanation:
Net cash flow from (OA) operating activity = $5000
Net cash flow from (I) investing = $10000
Net cash flow from (F) financing activity = $50000
Net cash increase = Operating activity cash flow + Financing activity cash flow - Net cash flow from investing
Net cash increase = 5000 + 50000 – 10000
Net cash increase = 45000
They are recorded as debit as Allowance for Doubtful Accounts.
<h3>Allowance for doubtful accounts </h3>
An allowance for doubtful accounts is a contra account that nets against the total receivables presented on the balance sheet to reflect only the amounts expected to be paid. The allowance for doubtful accounts estimates the percentage of accounts receivable that are expected to be uncollectible. However, the actual payment behavior of customers may differ substantially from the estimate.
KEY TAKEAWAYS
The allowance for doubtful accounts is a contra account that records the percentage of receivables expected to be uncollectible.
The allowance is established in the same accounting period as the original sale, with an offset to bad debt expense.
The percentage of sales method and the accounts receivable aging method are the two most common ways to estimate uncollectible accounts.
Learn more about doubtful accounts here :
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