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Ierofanga [76]
3 years ago
15

Lani Co. uses the allowance method to account for bad debts. At the end of the year, their unadjusted trial balance shows an acc

ounts receivable balance of $400,000; allowance for doubtful accounts balance of $400 (debit); and sales of $1,200,000. Based on history, Lani estimates that bad debts will be 1% of accounts receivable. The entry to record estimated bad debts will include a debit to Bad Debts Expense in the amount of:
A. $3,600
B. $4,000
C. $11,600
D. $12,400
E. $12,000
F. $4,400
Business
1 answer:
Vlada [557]3 years ago
3 0

Answer:

D. $12,400

Explanation:

Use the following formula to calculate the Bad debt expense for the period

Bad debt expesne = Debit balance of Allowance account + Allowance for the period

Where

Debit balance of Allowance account = $400

Allowance for the period = Account receivables x percentage of allowance = $1,200,000 x 1% = $12,000

Placing values in the formula

Bad debt expesne = $400 + $12,000

Bad debt expesne = $12,400

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tino4ka555 [31]
C) Median

is your answer

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For example, your median is 3 in a sequence of: 1,2,3,4,5

hope this helps
3 0
3 years ago
Refer to the following lease amortization schedule. The five payments are made annually starting with the inception of the lease
Bogdan [553]

Answer:

B. 10%

Explanation:

The computation of the effective annual interest rate is shown below:-

Effective annual interest rate = Lease payment third effective interest ÷ Lease payment second balance × 100

= $2,126 ÷ $21,260 × 100

= 10%

Therefore for computing the effective annual interest rate we simply applied the above formula.

Hence the correct option is B.

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3 years ago
Factors involved in importing​
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A country's balance of trade is defined by its net exports (exports minus imports) and is thus influenced by all the factors that affect international trade. These include factor endowments and productivity, trade policy, exchange rates, foreign currency reserves, inflation, and demand.
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3 years ago
New shale gas deposits are found in North Dakota :
lisabon 2012 [21]

Answer and Explanation:

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And on the other hand when the hot weather would lead to less crop in the midwest so there should be the shift in the short run aggregate supply

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3 0
3 years ago
Daves Inc. recently hired you as a consultant to estimate the company's WACC. You have obtained the following information: the f
levacccp [35]

Answer:

Explanation:

First, find the YTM of the bond (rD), you can do this with a financial calculator using the following inputs;

Maturity of the bond : N = 20

Annual coupon payment; PMT = 8%*1000 = 80

Face value; FV = 1000

Price of the bond ; PV = -1,050

then CPT I/Y = 7.51% (this is the Pretax cost of debt; the rD)

Next, find the cost of equity (rE) using CAPM;

CAPM; r = risk free + beta (Market risk premium)

rE = 0.0450 + 1.20(0.0550)

rE = 0.0450 + 0.066

= 0.111 or 11.1%

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w = weight of..

rD= pretax cost of debt

WACC = (0.65*0.111) + [0.35*0.0751(1-0.40) ]

WACC = 0.07215 + 0.015771

= 0.0879

Therefore, WACC = 8.79%

3 0
4 years ago
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