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Elenna [48]
3 years ago
8

M Company uses the percentage of sales method to account for its uncollectible accounts. On December 31, 2018, M has $1,800,000

in sales and 60% of these sales were in cash. M has a $2,000 credit balance in its allowance for doubtful account. Past experience suggested that 0.5% of credit sales are uncollectible. Requirements [You must show your work/steps of how you arrive at your answers] Question 1: What is the amount that M should report as its estimated bad debt expenses for year 2018
Business
1 answer:
Hitman42 [59]3 years ago
3 0

Answer:

See below

Explanation:

Estimated uncollectible based on past experience

= [($1,800,000 × 60%) × 0.5%]

= $1,080,000 × 0.5%

= $5,400

Credit balance in allowance for doubtful account = $2,000

Therefore, the total amount M should report as its estimated bad debts expense for the year 2018

= $5,400 - $2,000

= $3,400

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Answer:

The optimal method for procuring inputs that have well-defined and measurable quality specifications and require highly specialized investments is the contract.

Explanation:

The contract is signed between the seller and the buyer, and establishes formal and legal terms, and agreed responsabilities. The primary advantages are that firms and buyers are allowed to focus in producing and getting what they need as contracts are used for tangible goods and for rendered services, reducing the opportunistic behaviour and underinvestment.

The CONASUPO, mexican government office, signed a contract with the mexican ranch owners to get all their milk production at low prices to feed the thousands of low income families.

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Suppose two companies attempt to merge, and they operate in an industry where the postmerger Herfindahl-Hirschman index is 2,900
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Answer:

Option B -  There are significant diseconomies of scope is the correct answer.

Explanation:

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Significant diseconomies of scope would only serve to make the merger less likely to be accepted.

Therefore, option B is the correct answer.

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3 years ago
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The total factory overhead for Bardot Marine Company is budgeted for the year at $600,000. Bardot Marine manufactures two types
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Answer: the total number of budgeted direct labor hours for the year. - 600 DLH

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3 years ago
Related to the Economics in Practice on page​ 77: If a hurricane results in the supply of hotel rooms decreasing and the demand
UkoKoshka [18]

Answer:

Increases; Ambiguous effect on equilibrium quantity

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2 years ago
Richland’s real GDP per person is $10,000, and Poorland’s real GDP per person is $5,000. However, Richland’s real GDP per person
dangina [55]

Answer:

It will take approximately 36 Years to Poorland to catch up to Richland.

Explanation:

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The GDP increase in Poorland per year = 1 %

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The formula for calculating the per year GDP increase for Richland is:

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Similarly using the formula (1) we calculated the values for 10 and 20 years

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By calculating values using the above formulas, we have found that for 38th year, Poorland will catch upto Richland and will have more GDP.

Poorland GDP for 36th Year = 14491.4$

Richland GDP for 36th Year = 14307.7$

6 0
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