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yulyashka [42]
3 years ago
10

Ruby Red manufactures, markets, and distributes citrus flavored soft drinks across the globe. Ruby Red hired a collection agency

in 2018 to increase collection rates from customers. As a result, Ruby estimates that only 2% of its 2019 credit sales will be written off, compared to the 4% of 2018's credit sales that were estimated to be uncollectible. At December 31, 2019, Ruby Red has a $12,800 credit balance in its allowance for doubtful accounts and credit sales of $1,570,000.
Required:
Use the percentage of credit sales method to calculate the bad debt expense.
Business
1 answer:
kifflom [539]3 years ago
6 0

Answer:

$31,400

Explanation:

Ruby estimates that only 2% of its 2019 credit sales will be written off

Ruby Red has a $12,800 credit balance in its allowance for doubtful accounts

Ruby Red has credit sales of $1,570,000.

Bad debt expense = Credit sales *  2% of its 2019 credit sales

Bad debt expense = $1,570,000 * 2/100

Bad debt expense = $1,570,000 * 0.02

Bad debt expense = $31,400

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tino4ka555 [31]

Answer:

adding up consumption, investment, government expenses, and net exports

adding up the market prices of final goods and services produced in the U.S

adding up the incomes of producers and taxes paid to the government

Explanation:

GDP is a measure of the sum value of a country's output in a given period. The GDP value reflects economic growth or decline in a country for the period under review.

GDP is calculated using three methods. They include the income, production, and expenditure approach.

In the Income approach, economists add up all the earnings from the factors of production. Wages and salaries of all employees; the profits from businesses and corporates' ; rents, and interests form landlords are summed up to get GDP. Adjustments are made to cater for the taxes paid to the relevant government agencies. ( 4th option)

The production approach involves getting the value of all the finished consumer goods and services in the economy. The approach excludes intermediary goods and work-n progress. GDP is obtained by adding the total of the finished products and services and multiplying them by their prices. (3rd option)

The consumption option applies a formula that GDP = C+G+I+ NX, where C is private consumption expenditure,  G is government consumption and investment expenditure, and I in private investment expenditure. NX is the net imports. ( 1 st option )

4 0
3 years ago
What are some of the advantages and disadvantages of a) individuals as innovators, b) firms as innovators, c) universities as in
ch4aika [34]

Answer:

a. Individuals as innovators

<u>Advantages</u>

1. Individuals have no limits (no hard rules) as to whom they can sell their innovation to.

2. An individual can be able lead a successful career with their innovation is any company

<u>Disadvantages</u>

1. Capital is a major limit for most individuals who may not be able to market their innovations.

2. Lack of Knowledge in Patenting innovation ideas have led to most individuals losing their innovation to others.

b. firms as innovators

<u>Advantages</u>

1. Successful innovation can help a firm improve its processes and increase its revenues.

2. Innovation in a unique product can often lead a firm to monopoly as the product becomes a necessity

<u>Disadvantages</u>

1. Firms have more rivalry such that others can copy the innovation or produce another close substitute which can render all efforts to a loss.

2.It takes so much time for the innovation to be approved in a firm as some structures of authority have to be followed and also depending on the culture of the firm towards innovation.

c. universities as innovators

<u>Advantages</u>

1. Universities are better able to raise capital through the Research Funds granted to them by stakeholders.

2. Innovation increases a University`s reputation and improves it rankings.

<u>Disadvantages</u>

1. High dependence on government agencies for funding by Universities means Innovation successes are easily affected by the fiscus.

2. Universities are not effective at marketing Innovations on their own.

d. government institutions as innovators

<u>Advantages</u>

1. The government can increase revenue by improving processes and cutting costs.

2. Innovation can improve transparency and help improve governance and administration.

<u>Disadvantages</u>

1. Adoption of innovation is usually slow as it has to pass so much bureaucracy.

2. Most personnel prefer working in private institutions hence the personnel to drive innovation in governments may be unavailable or inadequate

e. nonprofit organizations as innovators

<u>Advantages</u>

1. There is so much option for funding of innovations ranging from Individuals, Companies and Government

2. Most innovations are driven by Human Need hence their increased success.

<u>Disadvantages</u>

1. The innovation may not be able to generate the revenue to cover the costs.

2. The organizations are usually lacking personal's to drive innovations as people prefer to be paid more for their work.

Explanation:

Innovation is defined as the creation, development and implementation of a new product, process or service. The aim of  innovation is to  improve efficiency, effectiveness or competitive advantage. Innovation presents advantages and disadvantages to various players as listed above.

6 0
3 years ago
Blue Ice Inc. is an American corporation. The company started out as a 1. ____ between Nick Selver and Rita Andrew in 1985. In 2
Andrei [34K]
1) Partnership. Nick Selver and Rita Andrew began the company as a partnership. 
2) partners: This word best describes the interest-holding people in a partnership
3) Incorporate: This word best describes converting the partnership to a corporation in order to democratize ownership of the company and sell stock publicly
4) Stock Market: This is the market in which shares of a public company are traded on the open market. 
6 0
3 years ago
You manage a hotel resort located on the South Beach on the Island of Kauai in
GaryK [48]

Answer:

Classification of Projects

The projects are classified as shown below:

Strategy Project:

Strategy projects supports organizations long term mission. it helps in increasing market share and revenue. Among the given projects, the strategy projects are:

b. build a 4 mile nature hiking trail.

d. Launch a new promotional campaign with Hawaii Airlines.

e. Convert 12 adjacent acres into wildlife preserve.

g. Change hotel brochures to reflect Eco-tourism image.

i. Introduce wireless internet service in cafe and lounge areas.

Operational Projects:

These projects support current business operations. Among the given projects, the operational projects are:

c. Renovate horse bran.

Compliance Projects:

These are those must do projects to function under a particular category. Among the given projects, the compliance projects are:

a. Convert the pool heating system from electrical to solar power.

f. Update all bathrooms in condos that are 10 years old or older.

h. Test and revise disaster response plan.

Not all projects are easy to classify. There are always some things falling under more than one category. Categorizing projects will help us to prioritize the implementation of the same. Compliance projects should be done at any cost. The organization's view will be reflected in the strategy projects. Operational projects can be postponed if financial budget constraint exists but compliance cannot be postponed.

6 0
3 years ago
On December 1, 20X4, Line Corp. received a donation of 2,000 shares of its $5 par value common stock from a stockholder. On that
Brrunno [24]

Answer:

$0

Explanation:

The shares that are donated is treated as the treasury shares. The treasury stock and the gain or the revneue account rise the stock market value. If there is an increase in the treasury stock so it reduced the stockholder equity but on the other hand the gain or revenue increase the owner equity

So overall there is no net effect

hence, the amount should be $0

7 0
3 years ago
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