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Nimfa-mama [501]
3 years ago
11

Assume Shamrock estimates bad debts based on 5% of the Accounts Receivables ending balance (as of Dec. 31, 20x2). Determine Bad

Debt Expense for 20x2. $_____________________
Business
1 answer:
a_sh-v [17]3 years ago
7 0

Answer:

Bad Debt Expense for 20x2 is $50,245

Explanation:

Note: The full question is attached as picture below

Ending balance = Beginning balance + Sales on account or credit sales - Cash collected - Uncollected accounts

Beginning balance of Accounts receivable (given) = $850000

Credit sales in 20X2 = 80% * $3125000 = $2500000

Cash collections (given) = $2400000

Uncollectible accounts (given) = $52100

Ending balance = $850000 + $2500000 - $2400000 - $52100 = $897900

Allowance required to be made for 20X2 = 5% of Accounts receivables ending balance on 20X2  = 5% * $897900 = $44895

First we will write off uncollectible accounts of $52100 from the beginning balance of allowance for uncollectible accounts. (Beginning balance of allowance for doubtful accounts = $46750 ).

Difference = Beginning balance of allowance account - Uncollectible accounts = $46750 - $52100 = - $5350

It means that there is a shortfall of $5350 in the allowance for doubtful accounts. And, also a total of $44895 should be there in the credit of Allowance for doubtful accounts at the end of 20X2.  Allowance needed in 20X2 = $44895 + $5350 = $50,245 . So, the Bad debt expense for 20X2 is $50,245.

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SIZIF [17.4K]

Answer:

Desing A is a better deal as the equivalent annual cost is lower than desing B

Anywa, bot desing cost are above the city collections thus, it cannot afford the sanitary systems unless it raises taxes

Explanation:

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F0 405,000

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Present value of the operating and maintenance cost:

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C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

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5 0
3 years ago
Reggie who is 55, had adjusted gross income of $32,000 in 2020. During the year, he paid for the following medical expenses:
sleet_krkn [62]

Assuming Reggie who is 55, had an adjusted gross income of $32,000 in 2020, Reggies medical expense deduction will be $75

Calculation to determine Reggie medical expense deduction

Drugs  $500

Add Health insurance premium-after tax $850

Add Doctors fees $1,250

Add Eye glasses $375

Total expenses  $2,975

($500+$850+$1,250+$375)

Less Insurance reimbursement  ($500)

Less 7.5% of Adjusted gross income ($2,400)  

($32,000×7.5%)

Medical Expense Deduction  $75

($2,975 - $500 - $2,400)

Inconclusion assuming Reggie who is 55, had an adjusted gross income of $32,000 in 2020, Reggies medical expense deduction will be $75

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Answer:

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In this context, Delux Technologies makes and sells only one product, a high-quality processor for mainframe computers and was approached by Imagination Station, a large computer manufacturer about purchasing their company.

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