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Alex_Xolod [135]
3 years ago
12

The following information is from the records of Mountainview Camera​ Shop: Accounts​ receivable, December​ 31, 2018 ​$80,000 (d

ebit) Net credit sales for 2018 ​160,000 Accounts written off as uncollectible during 2018 ​16,000 Cash sales during 2018 ​42,000 The company uses the direct writeminusoff method for bad debts. What is the amount of bad debts​ expense?
Business
1 answer:
alexgriva [62]3 years ago
4 0

Answer:

The amount of bad debts​ expense is $16,000

Explanation:

Bad debt : The Bad debt is that amount in which the chances of payment receive is very less. Thus, the bad debt amount is deducted in the balance sheet under debtors account and also it is shown in Profit and loss Account in debit side.

Under direct write minus off method for bad debts, the bad debt amount is recognized irrespective of whatever information is given.

Since in the question, the non-collectible amount is given which is $16,000.

So, the amount of bad debts​ expense is $16,000

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Keller Construction is considering two new investments. Project E calls for the purchase of earthmoving equipment. Project H rep
anastassius [24]

Answer:

USING 0% DISCOUNT RATE

PROJECT E

Year Cashflow [email protected]%     PV

             $                  $

0            (23,000) 1  (23,000)

1             5,000         1         5,000

2                  6000           1              6,000

3      7000          1              7,000

4                 10,000           1              10,000

                                               NPV  5,000

                   PROJECT H

Year Cashflow [email protected]%     PV

             $                  $

0            (25,000) 1  (23,000)

1             16,000 1         16,000

2                  5,000          1              5,000

3      4,000          1              4,000

                                               NPV  2,000

Project A should be accepted

USING 9% DISCOUNT RATE

Year Cashflow [email protected]%           PV

             $                      $

0            (23,000) 1        (23,000)

1             5,000         0.9174         4,587

2                  6000           0.8462            5,077

3      7000          0.7722             5,405

4                 10,000           0.7084            7,084

                                                       NPV   (847)

PROJECT H

Year Cashflow [email protected]%            PV

             $                        $

0            (25,000) 1         (23,000)

1             16,000 0.9714         15,542

2                  5,000          0.8462            4,231

3      4,000          0.7722            3,089

                                                     NPV    (138)

None of the projects should be accepted because they have negative NPV

Explanation:

The question requires the computation of NPV using 0% and 9%.

The cashflows of the two projects will be discounted at 0% and 9%.

The discount factors for each project can be calculated using the formula (1+r)-n. The cashflows of the projects will be multiplied by the discount factors to obtain the present values. NPV is the difference between present values of cash inflows and initial outlay.

7 0
3 years ago
Inventory costing methods place primary reliance on assumptions about the flow of:a. goodsb. costsc. resale pricesd. values
Mrac [35]

Answer: B costs

Explanation:

In business and accounting, cost is the monetary value that has been spent by a company in order to produce something.

Cost accounting aids in decision-making processes by allowing a company to calculate, evaluate, and monitor its costs.

4 0
3 years ago
Read 2 more answers
Presented below is information related to Bobby Engram Company.
Natasha_Volkova [10]

Answer:

A. $ 98,210

B1. Cost to retail percentage 60%

B2. Cost to retail percentage 65.73 %

B3. Cost to retail percentage 58 %

B4. Cost to retail percentage 63.33 %

Explanation:

A. Computation for the ending inventory at retail

Inventory at Retail

Beginning Inventory $ 100,000

Purchase ( Net ) $ 200,000

Net Markup $ 10345

Less Net Markdown ($26,135)

Less Sales Revenue ($ 186,000)

Ending Inventory $ 98,210

Therefore the ending inventory at retail will be $ 98,210

B1) Computation for a cost-to-retail percentage

Excluding both markups and markdowns.

Cost to Retail Percentage

Excluding both Markup and Markdown

Cost Retail

Beginning Inventory $ 58,000 $ 100,000

Purchase (Net) $ 122,000 $ 200,000

Total $ 180,000 $ 300,000

Cost to retail percentage = $180,000/$300,000 Cost to retail percentage = 60%

B2. Computation for a cost-to-retail percentage Excluding Markups but Including Markdown

Cost Retail

Beginning Inventory $ 58,000 $ 100,000

Purchase (Net) $ 122,000 $ 200,000

Less Mark down ($ 26,135)

Total $ 180,000 $273,865

Cost to retail percentage= $180,000 /$ 273,865*100

Cost to retail percentage= 65.73 %

B3. Computation for a cost-to-retail percentage Excluding Markdowns but including Markups

Cost Retail

Beginning Inventory $ 58,000 $ 100,000

Purchase Net $ 122,000 $ 200,000

Add Net Markups $ 10,345

Total $180,000 $ 310,345

Cost to retail percentage = $180,000 / $ 310,345*100

Cost to retail percentage = 58 %

B4. Computation for a cost-to-retail percentage Including both Markups and Markdown

Cost Retail

Beginning Inventory $58,000 $100,000

Purchase Net $ 122,000 $ 200,000

Net Markups $ 10,345

Less Net Mardown ($26,135)

Total $ 180,000 $ 284,210

Cost to retail percentage = $ 180,000/ $ 284,210 × 100

Cost to retail percentage = 63.33 %

Therefore the cost-to-retail percentage are:

B1. Cost to retail percentage 60%

B2. Cost to retail percentage 65.73 %

B3. Cost to retail percentage 58 %

B4. Cost to retail percentage 63.33 %

8 0
2 years ago
How does microfinance benefit an economy?​
JulsSmile [24]

Answer:

it enables people to use money wisely

Explanation:

this is because a specific amount of money will be provided for a specific reason

3 0
2 years ago
At the beginning of his current tax year, David invests $13,410 in original issue U.S. Treasury bonds with a $10,000 face value
vagabundo [1.1K]

Answer:

The amount of income that David will report this year if he elects to amortize the bond premium is $455.94.

Explanation:

This can be calculated as follows:

Interest income = Carrying value of the bond * Yield to maturity…………….. (1)

Where;

Carrying value of the bond = $13,410

Yield to maturity = 3.4%

Substituting the values into equation (1), we have:

Interest income = $13,410 * 3.4% = $455.94

Therefore, the amount of income that David will report this year if he elects to amortize the bond premium is $455.94.

6 0
3 years ago
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