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34kurt
3 years ago
10

For 2021, Rahal's Auto Parts estimates bad debt expense at 1% of credit sales. The company reported accounts receivable and an a

llowance for uncollectible accounts of $86,500 and $2,100, respectively, at December 31, 2020. During 2021, Rahal's credit sales and collections were $404,000 and $408,000, respectively, and $2,340 in accounts receivable were written off. Rahal's 2021 bad debt expense is:
Business
1 answer:
marshall27 [118]3 years ago
6 0

Answer:

See

Explanation:

Rahal's final balance in its allowance for uncollectible accounts at December 31, will be calculated as:

Step 1:

$404,400 × 1%

= $404,400 × 0.01

= $4,044

Step 2:

$2,100 - $2,340

= ($240)

Step 3:

$4,044 + ($240)

$3,804

Therefore, Rahal's final balance in its allowance for uncollectible accounts at December 31, 2021 is $3,804

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When the attitude of continuous improvement exists throughout an organization, every manager and employee is challenged to conti
JulsSmile [24]

Answer:

Option A

True

Explanation:

The attitude of continuous improvement entails that the members of an organization strive to improve on themselves, operations, and processes within the organization. It usually entails learning from both mistakes and business practices of other companies to ensure that there is a constant improvement in the day to day activities of the business.

During the process of continuous improvement, every manager and employee is definitely expected to try out new policies, and practices to see how well they fit in and aid the company to achieve her overall business goals.

This is the only way a strong "continuous improvement " attitude can be maintained company-wide.

<em>Hence, the answer is option A: True.</em>

7 0
4 years ago
Alpha Inc. and Beta Co. are sheet metal processors that supply component parts for consumer product manufacturers. Alpha has bee
Dmitriy789 [7]

Answer: A. Higher

B. The implication for Beta Co. is that because of its lower ROI, its ability to raise capital will be reduced.

Explanation:

a. What would you expect Alpha’s ROI to be relative to the ROI of Beta Co.? Explain your answer.

In this case, Alpha’s ROI to be relative to the ROI of Beta Co. will be higher. Since Alpha's investment cost is lower when compared to that of ‘Beta Co. while both companies have thesame operating income, then the return on investment of Alpha will then be higher than that of Beta due to the lower investment cost that Alpha incurred.

b. What are the implications of this ROI difference for a firm seeking to enter an established industry?

The implication for Beta Co. is that because of its lower ROI, its ability to raise capital will be reduced.

5 0
3 years ago
Marshland Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information i
Nikolay [14]

Answer: $44,000

Explanation:

The following information can be gotten from the question:

Cash dividends declared for the year = $40,000

Cash dividends payable at the beginning of the year = $17,000

Cash dividends payable at the end of the year = $13,000

Therefore, the amount of cash paid for dividends was:

= $40,000 + $17,000 - $13,000

= $57,000 - $13,000

= $44,000

4 0
3 years ago
Suppose the government requires beer drinkers to pay a $3 on each case of beer that they purchase. a. Illustrate the market for
kirill [66]

Explanation:

a).In the following graph, $ D_0 \text{ and}\ S_0 $ are the pre tax demand the supply curve that intersects at the point A with price $P_0$ (the price paid by the buyers = price received by sellers) and the quantity $Q_0$  (quantity bought = quantity sold)

b). The tax on the consumers will decrease the demand of the beer shifting the demand curve leftwards from the $ D_0 \text{ and}\ D_1 $  intersecting point $S_0$ at point B. Price paid by the buyers is point $P_1$, price received by the producers is $P_2$  and the tax per unit is $(P_1 - P_2)$ , which is equal to the vertical distance BC. Quantity bought and sold is lower at $Q_1$.

c). Producer surplus is the area between supply curve and the price received by the producers, which is equal to the area $P_2BE$. And the consumer surplus may be the area between the price paid by the consumers and the demand curve, and is equal to the area $P_1CD$.

5 0
3 years ago
Dylan is concerned about the safety of the money in his savings account. what type of depository institution should he choose
Bumek [7]

The answer is <u>"He could securely pick either a commercial bank or a credit union, as long as his savings account balance meets the protection necessities".</u>


While banks and credit unions are both money related foundations that offer comparable administrations (checking and investment accounts, automobile advances, and home loans), the fundamental contrast between a bank and a credit association is that "clients" of a credit association are individuals, and they claim the establishment. A bank is an organization, and like most organizations, a bank intends to amplify benefits for its investors. A credit union is an agreeable — and frequently not-for-benefit — establishment that is possessed by its individuals (clients) who justly choose a governing body. Credit associations will in general spotlight on individuals' needs and endeavor to give credit at sensible rates.

7 0
3 years ago
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