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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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Miniaturization of Wisynco sales?
Dmitriy789 [7]

Explanation:

Wisynco Group Limited has 1,500 total employees across all of its locations and generates $195.02 million in sales (USD).

4 0
2 years ago
You invest in a piece of equipment costing $40,000. The equipment will be used for two years, and it will be worth $15,000 at th
inna [77]

Answer:

The answer is given below;

Explanation:

Description            0                              1                               2

Equipment           (40,000)

Depreciation

(40,000/10,000)*4,000                       (16,000)

(40,000/10,000)*6,000                                                        (24,000)  

Savings                                                  28,000                     40,000

Salvage Value                                                                          15,000

Net Cash flows                                       12,000                       31,000

PV factor                                          1/1.1 =.91                         1/1.1^2=.83

Net present value

PV factor*net cash flows                   10,920                            25,730

(10,920+25,730)        36,650

Net present value  (40,000)+36,650=(3,350)    

                 

7 0
3 years ago
Jerome is training to be a vacuum cleaner sales person. Initially, he got paid for each customer he called on, even if the custo
lukranit [14]

Answer:

Shaping

Explanation:

According to my research on studies conducted by various psychologists, I can say that based on the information provided within the question Jerome's sales skills are being developed through the use of Shaping. Psychologists refer to this term as a process of reinforcing certain behaviors that help improve a set of desired abilities. Which is what what the company seems to be doing with Jerome in order for him to develop the skills to close more sales.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

7 0
3 years ago
Smith Decorating Services pays $200 cash for rent expense. How would this transaction affect the accounting equation?
Pavel [41]
Equity would decrease (Expenses, Rent Expense in this case, causing Retained Earnings to decrease).
5 0
3 years ago
Landscaper Lottie used her machinery, employee labor, and her expertise to landscape Opal's new guest home. Opal fails to pay fo
ale4655 [162]

Answer: Mechanic's lien

Explanation:

 The mechanic's lien is basically refers to the workers where they perform the mechanics related work for understanding the properties and it is the legal claim for the purpose of improving the material.

It is basically managing both private and the real properties and managing the security interest.  

According to the question, the Lottie is filing lien against the property and this lien is known as the mechanic's lien as the opal is not able to pay for landscape.      

  Therefore, Mechanic's lien is the correct answer.

3 0
3 years ago
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