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KonstantinChe [14]
2 years ago
11

E6-20 (Algo) Inferring Bad Debt Expense and Determining the Impact of Uncollectible Accounts on Income (Including Tax Effects) a

nd Working Capital LO6-2 A recent annual report for RVC contained the following information (dollars in thousands) at the end of its fiscal year: Year 2 Year 1 Accounts receivable $ 9,092,000 $ 8,633,000 Allowance for doubtful accounts (1,020,000 ) (565,000 ) $ 8,072,000 $ 8,068,000 A footnote to the financial statements disclosed that uncollectible accounts amounting to $827,000 and $436,000 were written off as bad debts during year 2 and year 1, respectively. Assume that the tax rate for RVC was 35 percent. Required: 1. Determine the bad debt expense for year 2 based on the preceding facts. (Hint: Use the Allowance for Doubtful Accounts T-account to solve for the missing value.) (Enter your answers in thousands not in dollars.) 2. Working capital is defined as current assets minus current liabilities. Would the working capital be affected by the write-off of an uncollectible account? 3. Would the net income be affected by the $827,000 write-off during year 2?
Business
1 answer:
SVETLANKA909090 [29]2 years ago
8 0
Theres is to much writing sorry hope this helps
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If a borrower provides collateral and fails to repay the loan,
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The correct option is  B.
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Yellow​ Press, Inc., buys paper in​ 1,500-pound rolls for printing. Annual demand is 3 comma 000 3,000 rolls. The cost per roll
GenaCL600 [577]

Answer:

59 orders

Explanation:

For computing the how many rolls should order at a time, first we have to determine the economic order quantity which is shown below:

The computation of the economic order quantity is shown below:

= \sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}

where,

Carrying cost = $875 × 20% = $175

And, other items values would remain the same

ow put these values to the above formula

So, the value would be equal to

= \sqrt{\frac{2\times \text{3,000}\times \text{\$75}}{\text{\$175}}}

= 50.71 units

Now The number of orders would be equal to

= Annual demand ÷ economic order quantity

= $3,000 ÷ 50.71 units

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7 0
3 years ago
In need of extra​ cash, Troy and Lily decide to withdraw ​$2 comma 100 from their traditional IRA. They are both 40 years old. T
krek1111 [17]

Answer:

Calculate the tax consequence of withdrawal from retirement account.

T and L are 40 years old and decide to withdraw $2,100 from their IRA. They lie in a 35% marginal tax bracket.

Analysis

They are withdrawing some amount from their retirement fund. They have to pay the tax and penalty for early withdrawals from the retirement fund. The withdrawal amount is $2,100 so they have to pay tax on it. The tax rate will be 35% which is their marginal tax bracket.

Calculation of tax consequences if withdrawal amount is $2,100:

Ordinary income tax amount calculates by multiplying the withdrawal amount with the ordinary tax rate.

= $2100 × 35%

= $735

The withdrawal amount attracts the 10% penalty. So, the penalty amount is calculated as follows: Penalty on withdrawn funds calculates by multiplying the withdrawn funds with the percentage of penalty.

= $2100 × 10%

= $210

(NOTE: - T and L have to pay ordinary income tax along with the penalty on their withdrawal because they are withdrawing funds from their IRA before age 59.5.)

Total expenses include the tax amount and penalty charge on withdrawal amount. So, it is calculated as follows:

Total expenses =$735 + $210

Total expenses = $945

Conclusion

Therefore, T and L would incur a tax of $945 on their withdrawal. This $945 is the sum of income tax amount and penalty on withdrawal balance.

8 0
3 years ago
Kimberley Mayfield recently evaluated her subordinate's progress report. She now plans to inform her about the objectives she di
stellarik [79]

Answer: behavioral

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In the given case, Kimberley wants to inform her subordinate what she has not achieved and also advice her how she can improve. This shows that she has a developing instinct and leadership quality in her.

    Thus, from the above we can conclude that the correct option is D.

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