Answer:
Account titles and explanation Debit Credit
bad debt expense $16,800
allowance for d
doubtful account $16,800
Explanation:
Aging of accounts =5% of accounts receivable
Which is 360,000 x 5% = 18,000 expected allowance
current balance before adjustment =1,200 credit
Adjustment = 18,000 - 1,200 = 16,800
Adjusting entry BY Tanning Company
Account titles and explanation Debit Credit
bad debt expense $16,800
allowance for d
doubtful account $16,800
Answer:
a. Decrease
b. Decrease
c. Decrease
d. Increase
e. Increase
Explanation:
a. When the company's cost of production increases, this reduces the amount of profits they make. A lower than expected profit margin is frowned upon in the Financial market therefore some people will sell their shares in the company which will have the effect of decreasing market value.
b. An increase in a firm's cost of financing signals an increase in the riskiness of a company. It also means that the company will be paying more on interest which will reduce profits. These 2 thing will drive some investors away thereby reducing the market value.
c. A firm's value can be found by discounting its projected sales and dividends amongst others with a certain discount rate. If a higher rate is used, the present value and hence the market value figure will be less.
d. When there is an increase in Sales revenue, it signals profitability for a company. Investors love profitable companies and will buy more of the company stock which will drive up the price.
e. Projected future profits can be used to calculate present value as well as serve as an indication of future profitability. Investors will buy more shares and drive up the market value.
Answer:
The business cycle is crucial for businesses of all kinds because it directly affects demand for their products. Boom: high levels of consumer spending, business confidence, profits and investment. Prices and costs also tend to rise faster. Unemployment tends to be low as growth in the economy creates new jobs.
Answer:
$3.2 million
Explanation:
The revenue and gross profit or loss which the company identify in the first and second year if it recognizes revenue upon contract completion is calculated below.
Total costs = Incurred costs + estimated costs to complete = $8 million + $12 million = $20 million
Revenue to recognize = $8m/$20m*$28m = $11.2 million
Gross Profit = Revenue recognized less costs incurred
= $11.2m - $8m = $3.2 million
Answer:
<u>the FDA (U.S. Food and Drug Administration)</u>
Explanation:
The Food and Drug Administration is a federal agency, which is allowed under US law to prevent an operation from going on if it determines that an imminent health hazard still exists.
However, according to the FDA food code, <em>"if immediate corrective action is taken, there is no "Imminent Health Hazard," meaning</em> the operation can get approval from the agency to reopen.
