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lilavasa [31]
3 years ago
10

Historical Art is a new business. During its first year of operations, credit sales were $50,000 and collections from credit sal

es were $34,000. One account for $500 was written off. Management uses the percent-of-sales method to account for bad debts expense and estimates 3% of credit sales to be uncollectible. What is the balance of accounts receivable at the end of the first year?
Business
1 answer:
Igoryamba3 years ago
5 0

Answer: $1000

Explanation:

First, we calculate the amount if bad debt expense which will be:

= 3% × $50000

= $1500

Therefore, the balance of accounts receivable at the end of the first year will be:

= Amount of bad debts expense - Account written off

= $1500 - $500

= $1000

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Alliance Products purchased equipment that cost $120,000. It had an estimated useful life of four years and no residual value. T
poizon [28]

Answer:

Alliance should record a loss of $5000.

Explanation:

Depreciation : The depreciation is the amount which is charged every year. It is a decrease value in the asset due to obsolescence, tear and wear value, usage of time, etc.

There are many methods for calculation the depreciation such as straight line method (SLM), Written down value method (WDV) and many more.

In the question, the straight line method is used.

In straight line method, the deprecation is charged with same value over the useful life of asset.

So, the calculation of depreciation is given below:

Since,

The purchase amount of equipment = $120,000

Useful life  = 4 years

Salvage value = 0

Sale value at the end of the third year = $25,000 cash.

By using above information, we have to calculate the depreciation for 3 years as in the end of the 3 year, the asset is sold.

Depreciation Formula for SLM method  = (Purchase cost- Salvage value) ÷ useful life

=  ($120,000 - 0) ÷ 4

= $30,000

So, the amount of depreciation for all year is $30,000

Depreciation for 1 year = $120,000 - $30,000 = $90,000

Depreciation for 2nd year = $90,000 - $30,000 = $60,000

Depreciation for 3rd year = $60,000 - $30,000 - $25,000 = -$5000

In the 3rd year, the alliance have a loss of $5000 after selling asset.

Hence, Alliance should record a loss of $5000.

3 0
3 years ago
When a shoe manufacturer decides to focus his attention on the segment of the market that is interested in running. this selecti
LiRa [457]

when a shoe maker chooses to concentrate his efforts on the consumer segment that is interested in running. this selection of a specific market segment is known as market targeting.

Market targeting:

  • The final customer that a corporation seeks to sell its finished goods to is known as the target market. To grow market share, target marketing includes segmenting the total market into different groups and developing marketing plans for each group.
  • A target consumer is someone who will most likely purchase your product. Additionally, it is a segment of the larger target market. For instance, if female athletes between the ages of 13 and 25 make up your target market, female athletes between the ages of 13 and 16 might be your ideal target consumer.
  • The importance of selecting a target market lies in its ability to help the business focus its resources on those customers who have a high potential for sales growth, interest in the product, and brand loyalty.

Learn more about market targeting here brainly.com/question/13363009

#SPJ4

6 0
1 year ago
Lloyd is a divorce attorney who practices law in Florida. He wants to join the American Divorce Lawyers Association (ADLA), a pr
svetoff [14.1K]

Answer:

C) 19 years

Explanation:

We must determine the net present value of the annual payments in a similar way to calculating the present value of annuities. We can use an excel spreadsheet and the present value formula with a 5.9% interest rate and then subtract the lifetime fee ($7,000):

Present value 14 years = $6,079 - $7,000 = -$921

Present value 16 years = $6,614 - $7,000 = -$386

Present value 19 years = $7,310 - $7,000 = $310

Present value 21 years = $7,711 - $7,000 = $711

<u>*present value 18 years = $7,091 - $7,000 = $91, but 18 years was not an option.</u>

3 0
3 years ago
Cecil Jameson, Attorney-at-Law, is a proprietorship owned and operated by Cecil Jameson. On July 1, 2007, Cecil Jameson, Attorne
Kisachek [45]

Answer:

1. Determine the amount of owner’s equity (Cecil Jameson’s capital) as of July 1, 2007.

equity = assets - liabilities = $15,050 - $1,530 = $13,520

2. State the assets, liabilities, and owner’s equity as of July 1 in equation form similar to that shown in this chapter. In tabular form below the equation, indicate the increases and decreases resulting from each transaction and the new balances after each transaction.

since there is not enough room here, I used an excel spreadsheet

   

3. Prepare an income statement for July, a statement of owner’s equity for July, and a balance sheet as of July 31, 2007.

Cecil Jameson, Attorney-at-Law

Income Statement

For the month ended July 31, 2007

Service revenue                                                       $5,953

Expenses:

  • Paralegal services $1,635
  • Wages expense $850
  • Rent $1,200
  • Answering service expense $250
  • Utilities expense $325
  • Supplies expense $115
  • Miscellaneous expense $75                           <u>$4,450</u>

Operating income                                                     $1,503

Cecil Jameson, Attorney-at-Law

Balance Sheet

For the month ended July 31, 2007

Assets:

Cash $6,873

Accounts receivables $2,225

Supplies $980

Land $10,000

Total assets $20,078

Liabilities:

Accounts payable $720

Paralegal fees payable $1,635

Total liabilities $2,355

Equity:

Jameson, Cecil, capital $18,723

Jameson, Cecil, drawings -$1,000

Total equity $17,723

Liabilities + Equity = $20,078

Cecil Jameson, Attorney-at-Law

Statement of Owner’s Equity

For the month ended July 31, 2007

Jameson, Cecil, capital balance July 1, 2007       $13,520

Investment during the month                                  $3,700

Net income                                                                <u>$1,503</u>

Subtotal                                                                    $18,723

Drawings                                                                  <u>($1,000)</u>

Jameson, Cecil, capital balance July 31, 2007     $17,723

4. (Optional). Prepare a statement of cash flows for July.

Cecil Jameson, Attorney-at-Law

Statement of Cash Flows

For the month ended July 31, 2007

Cash flows from operating activities  

Net income                                                                  $1,503

Adjustments to net income:

  • Decrease in accounts receivables $975
  • Decrease in accounts payables ($810)
  • Increase in supplies inventory ($130)
  • Increase in paralegal fees payable $1,635       <u>$1,670</u>

Net increase in cash from operating activities          $3,173

Cash flows from investing activities                                $0

Cash flows from financing activities  

Additional paid in capital                                           $3,700

Drawings                                                                    <u>($1,000)</u>

Net increase in cash from financing activities         $2,700

Net increase in cash                                                  $5,873

Cash balance July 1, 2007                                        <u>$1,000</u>

Cash balance July 31, 2007                                      $6,873

Download pdf
5 0
3 years ago
You invest $100 in a risky asset with an expected rate of return of 0.12 and a standard deviation of 0.15 and a t-bill with a ra
kvasek [131]
<span>57% and 43%
I'm pretty sure that this is what you're looking for so if you need more help or want me to explain this more just ask!
- Just Peachy</span>
6 0
3 years ago
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