Answer:
$487,500
Explanation:
The write off does not affect the realizable value of accounts receivable . Neither total assets nor net income is affected by the write off or specific account. Instead both assets and net income are affected in the period when bad debts expense is predicted and then recorded with an adjusting entry.
Accounts Receivable $ 3250,000
Less Allowance for Doubtful Accounts $ 3250,000*1% = 32,500
Estimated Realizable Accounts Receivable $ 3217500
But if the amount of the bad debts decreases or increases as is given below then the the income is also increased or decreased by the amount given
Bad debts = $ 32,500
Uncollectibles previously written off= $ 27,800
Difference $ 4700
Net income $ 487,500
Less Difference $ 4700
Reported Income $ 482,800
Answer:
30%
Explanation:
Credit utilization can be regarded as the percentage of the total credit that individual is utilizing. It's financially advisable to keep the credit utilization ratio in order to have a good credit score.
To calculate credit utilization rate;
✓ one need to know the information about one credit account.
/✓Then divide the total balance by the total credit limit
✓then multiply by 100
For instance if the total balance is $5000 and total credit limit is $25000 then the credit utilization ratio is ($5000/$25000)×100%
= 20%
Whenever the credit utilization ratio is
higher than 30% it will bring about the decrease of credit score, as a result of this , the lender can be worried because he/she may think the ratio is overextended, and paying back new debt might not be easy.
Therefore, with general rule of thumb is to keep your credit utilization rate at 30% or lower. your approximate credit utilization rate for this current billing cycle is 30%
Answer and Explanation:
The journal entries are shown below:
1
Vacation Benefit Expense $13,000
To Vacation Benefit Payable $13,000
(Being vacation benefit expense is recorded)
2
Warranty Expense $18,000
To Estimated Warranty Liability $18,000
($12,000 × 10 % × $15) = $18,000
(Being warranty expense is recorded)
These two entries need to be passed
The price elasticity of baseball bats is −0.77, this indicates that the demand for bats tends to inelasticity. Therefore, if the manager wants to dispose of his inventory, he would advise you not to lower the price because it would cause a decrease in income. He could raise the price and earn more since being an inelastic demand, the quantity demanded would not be modified as much as the price would change.
Basically examining the promblem
