Answer: Bad Debt Expense 28,000 Allowance for Doubtful Accounts 28,000
Explanation:
Account receivable = 300,000
Percentage uncollectible = 10%
Current balance = 2000
Adjustment to allowance for uncollectible accounts is given by :
(Account receivable ×percentage uncollectible) - current balance
(300,000 × 10%) - 2000
(300,000 × 0.1) × 2000
30,000 - 2000 = 28,000
Therefore, adjustment should be :
bad debt expense debit 28,000
allowance for doubful account credit 28,000
Answer:
a. Domestic producers require time to gain experience and lower their unit costs; this will allow these producers to compete successfully in international markets.
Explanation:
According to the infant-industry theory, new industries in emerging and developing economies need protection for unfair competition from industries in advanced economies. The new industries need time to grow and develop economies of scale that can match those from more developed economies.
Economists describe infant industries as those in their early stages of development and, as such, cannot compete favorably with established rivals. Proponents of Infant-economies protection argue that infant industries need protection from international competitors capable of flooding domestic markets with cheaper goods. Protection assist infant industries to mature and develop economies of scale.
Answer:
Calculate the tax consequence of withdrawal from retirement account.
T and L are 40 years old and decide to withdraw $2,100 from their IRA. They lie in a 35% marginal tax bracket.
Analysis
They are withdrawing some amount from their retirement fund. They have to pay the tax and penalty for early withdrawals from the retirement fund. The withdrawal amount is $2,100 so they have to pay tax on it. The tax rate will be 35% which is their marginal tax bracket.
Calculation of tax consequences if withdrawal amount is $2,100:
Ordinary income tax amount calculates by multiplying the withdrawal amount with the ordinary tax rate.
= $2100 × 35%
= $735
The withdrawal amount attracts the 10% penalty. So, the penalty amount is calculated as follows: Penalty on withdrawn funds calculates by multiplying the withdrawn funds with the percentage of penalty.
= $2100 × 10%
= $210
(NOTE: - T and L have to pay ordinary income tax along with the penalty on their withdrawal because they are withdrawing funds from their IRA before age 59.5.)
Total expenses include the tax amount and penalty charge on withdrawal amount. So, it is calculated as follows:
Total expenses =$735 + $210
Total expenses = $945
Conclusion
Therefore, T and L would incur a tax of $945 on their withdrawal. This $945 is the sum of income tax amount and penalty on withdrawal balance.
Unincorporated slums on the texas side of the border that have substandard housing
Answer:
The correct answer is option b.
Explanation:
The sole proprietor of the Milwaukee Machine Company receives all accounting profits earned by her firm.
The accounting profits for the year were $50,000.
She has a standing salary offer of $35,000 a year to work for a large corporation. If she had invested her capital outside her own company, she estimates that would have returned $22,000 this year.
These two are the implicit or opportunity cost of doing business.
The accounting profits considers only explicit cost not implicit cost. To calculate economic profits we need to deduct implicit costs from accounting profits.
Economic profits
= Accounting profits - Implicit costs
= $50,000 - $35,000 - $22,000
= - $7,000
