Answer:
c.$538,685
Explanation:
Calculation to determine what Scarbrough will receive and record cash of
Receivables $600,000
Less: Amount of the hold back ($30,000)
($600,000 x 5%)
Less: Withheld as fee income ($18,000)
($600,000 x 3%)
Less: Withheld as interest expense ($13,315)
($600,000 × 15% × 54/365)
Cash $538,685
Therefore Scarbrough will receive and record cash of: $538,685
<span>Harper & Kane use the fee system. A fee system is one of two billing methods used by advertising agencies. First there is the labor based fee system and then there is also the media commission system. The fee system happens when an agency bills for compensation for their work, the compensation is based on the number of hours worked on the project as well as the number of employees who were involved.</span>
Answer:
a write-off using the allowance method will not change the net receivables.
Explanation:
accounts receivable 2,500
Allowance for Uncollectible Accounts (500)
net receivable 2,000
a write-off using the allowance method will not change the net receivables.
after the write-off both, Ar and the allowance decrease by 80
<u>so the net receivable keeps at the same value</u>
<u></u>
accounts receivable 2,420
Allowance for Uncollectible Accounts (420)
net receivable 2,000
Answer:
C. $1,000
Explanation:
The computation amount is shown below:-
Interest rate per period = Interest rate per annum ÷ Number of compounding per annum
= $8.00 ÷ 1
= 8%
Number of periods = Number of years × Number of compounding per annum
= 21 × 1
= 21
Present value = Future value × (1 ÷ (1 + rate of interest)^number of years)
= $5033.83 × (1 ÷ (1 + 8%)^21)
= $5033.83 × (1 ÷ (1.08)^21
= $5033.83 × (1 ÷ 5.033833715
)
= $5033.83 × 0.198655748
= 0.999999262
= $1,000
Therefore for computing the present value we simply applied the above formula.
Answer:
$165,000
Explanation:
The computation of the cash payments for income tax is shown below:
= Beginning income tax payable + income tax expense - ending income tax payable
= $30,000 + $175,000 - $40,000
= $165,000
We simply added the beginning income tax payable and deduct the ending income tax payable to the income tax expense so that the accurate amount can be computed