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Sati [7]
3 years ago
10

Jumpin Corporation uses the percentminusofminussales method to estimate uncollectibles. Net credit sales for the current year am

ount to $ 2 comma 100 comma 000​, and management estimates 3​% will be uncollectible. The Allowance for Uncollectible Accounts prior to adjustment has a debit balance of $ 1 comma 800. The amount of UncollectibleminusAccount Expense reported on the income statement will​ be:
Business
1 answer:
Fudgin [204]3 years ago
5 0

Answer:

The amount of Uncollectible Account Expense reported on the income statement will​ be: $ 64,800

Explanation:

Jumpin Corporation

Percent of Sales method

Net credit sales  $ 2 100  000​,

Un collectible estimated 3​%

Un collectibles Accounts = 3% of  $ 2 100,000​, = $ 63,000

Unadjusted Allowance for Un collectible Accounts  $ 1, 800 Dr.

Required Adjustment =                                 $ 64,800

The amount of Un collectible Account Expense reported on the income statement will​ be: $ 64,800

In the percent of sales method emphasis is laid on the matching principle in the income statement and amount of bad debts expense is subtracted from the accounts receivables.

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A construction company entered into a fixed-price contract to build an office building for $32 million. Construction costs incur
Delicious77 [7]

Answer:

company gained a gross profit of $2 million

Explanation:

Data provided in the question;

Contract price to build an office = $32 million

Construction costs incurred during the first year = $9 million

Estimated costs to complete at the end of the year = $21 million

Therefore,

Total cost incurred to complete the construction of the office at the end of the first  year

=  Construction costs incurred during the first year + Estimated costs to complete at the end of the year

= $9 million + $21 million

= $30 million

Thus,

The revenue generated by the company = Contract price - cost incurred

= $32 million - $30 million

= $2 million

since the revenue is positive, hence the company gained a gross profit of $2 million

8 0
3 years ago
Aspen's Distributors has a levered cost of equity of 13.84 percent and an unlevered cost of capital of 12.5 percent. The company
Reptile [31]

Answer:

8.60%

Explanation:

We use the MM proposition II with taxes

r_e = r_a + \frac{D}{E} (r_a-r_d)(1-t)

ra 0.125

D 5000

E 9600 (14,600 assets = 5,000 liab + equity)

rd ??

taxes 0.34

re 0.1384

We set p the formula and solve:

0.1384 = 0.125 + \frac{5,000}{9,600} (.125-r_d)(1-.34)

0.1384 = 0.125 + \frac{5,000}{9,600} (.125-r_d)(1-.34)

0.1384 - 0.125 = 0.34375 (.125-r_d)

0.0134 = 0.34375\times 0.125 - 0.34375\times r_d

r_d = (0.34375\times 0.125 - 0.0134)\div 0.34375

rd = 0.860181818 = 8.60%

6 0
3 years ago
On January​ 2, 2019, Kaiman Corporation acquired equipment for $ 700,000. The estimated life of the equipment is 5 years or 50,0
Aneli [31]

Answer:

Accumulated depreciation= $276,000

Explanation:

Giving the following information:

On January​ 2, 2019, Kaiman Corporation acquired equipment for $ 700,000. The estimated life of the equipment is 5 years. The estimated residual value is $ 10,000.

Depreciable value= 700,000 - 10,000= 690,000

Straight-line depreciation= 690,000/5= $138,000

Accumulated depreciation= 138,000*2= $276,000

5 0
3 years ago
1976, the cost of a movie was $4. in 2012, it's $9. if the cpi for 1976 is 56, and 228 for 2012. how much is the cost of a 1976
ivann1987 [24]
$10.29 I'm not sure but hope I'm right
7 0
3 years ago
g The effect on revenue due to a marginal increase in the input is called the marginal revenue product. Match the statements bel
morpeh [17]

Answer:

Statement true for Imperfect Competition Markets

Explanation:

Marginal Revenue Product is additional revenue due to hiring of additional input, it is product of marginal product & marginal revenue = MP x MR

Value Marginal Product is money value of additional production with additional input, product of marginal product (MP) & price (AR), = MP x AR

Input demand curves are derived demand curves, derived from demand of final goods. In perfect competition, demand is perfectly inelastic & horizontal, AR = MR, so MRP = VMP in this case. In imperfect competition market (oligopoly, monopoly etc) - MR < AR, so MRP < VMP in this case.

5 0
3 years ago
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