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Mama L [17]
3 years ago
5

Cashier's checks Checks Question 5 0/1 pts If Sid Inc. has net sales of $750,000, sales on account of $600,000, and sales return

s and allowances of $50,000, what would be the bad debt expense for the year, assuming that Sid uses an estimate of 12% for bad debts? A. $72,000 B. $66,000 C. $90,000 D. $18,000
Business
1 answer:
IRINA_888 [86]3 years ago
7 0

Answer:

Option A,$72000

Explanation:

Bad debt expense is computed on the net  credit sales amount, in other words, the bad debt expense is 12% of credit sales of $600,000.

Bad debt expense=$600,000*12%

                               =$72000

Option C is wrong because the answer was arrived at by calculating 12% of $750,000 the net sales amount that also has cash sales of $150,000 included in it($750000-$600000)

Option B is wrong as the amount of sales returns and allowances of $50,000 was deducted from $600,000 prior to applying 12% allowance for bad debt

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Increase the promotion budget to gain greater awareness

Explanation:

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3 years ago
Chiquita produces bananas for an average explicit cost of $0.25 per banana and sells 1 million bananas per week for a price of $
Sergio039 [100]

Answer:

Option (A) is correct.

Explanation:

Given that,

Implicit costs per week = $200,000

Average explicit cost per banana = $0.25 per banana

Per week bananas sold = 1 million

Explicit cost = Average explicit cost per banana × No. of banana sold

                    = $0.25 × 1,000,000

                    = $250,000

Total revenue = No. of banana sold × Selling price of each banana

                        = 1,000,000 × $0.50

                        = $500,000

Accounting profit = Total revenue - Explicit cost

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                             = $250,000

Economic profit:

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= $500,000 - $250,000 - $200,000

= $50,000

5 0
3 years ago
King Nothing is evaluating a new 6-year project that will have annual sales of $410,000 and costs of $284,000. The project will
motikmotik

Answer:

Option (a) is correct.

Explanation:

Given that,

Sales = $410,000

Costs = $284,000

Depreciation Expense =  $510,000 × 0.1920]

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Therefore,

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= [(Sales - Variable Costs - Fixed Costs) × (1 - Tax Rate)] + [Depreciation × Tax Rate]

= [($410,000 - 284,000) × (1 - 0.35)] + [$97,920 × 0.35]

= [$126,000 × 0.65] + [$97,920 × 0.35]

= $81,900 + $34,272

= $1,16,172

7 0
3 years ago
Which following statement about FAFSA process are TRUE?
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The answer is b my guy dont worry im wrong
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