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Shkiper50 [21]
3 years ago
12

If Modern Company received $3,650 from Connor Young Company on March 12 for the total amount of an account which had been writte

n off on March 1, the entry to reinstate the account under the allowance method would include
Business
1 answer:
joja [24]3 years ago
3 0

Answer:

Please post the full question together next time.

If Modern Company received $3,650 from Connor Young Company on March 12 for the total amount of an account that had been written off on March 1, the entry to reinstate the account under the direct write-off method would include:______.

a. a debit to Allowance for Doubtful Accounts of $3,650.

b. is the same as it would be under the allowance method.

c. includes a credit to Bad Debt Expense of $3,650.

d. includes a credit to Cash of $3,650.  

Explanation:

Under the direct write-off method ,

the journal entry is Bad debt expense A/c Dr XXXXX      

To Account receivable A/c XXXXX

(Being the bad debt expense is recorded)

For recording this journal entry,  we Debited the  bad debt expense and credited the account receivable

This is the answer. Hence, all the given options are incorrect  

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7 0
3 years ago
Give reasons to show why management is inexact science and not an exact science?​
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It is true that is inexact science neither precise nor as comprehensive as natural and pure science.

7 0
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Joe sends for a MBA catalog from State University. According to the catalog, the MBA applications are evaluated on the basis of
irinina [24]

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A company issues a​ ten-year bond at par with a coupon rate of 6.4​% paid​ semi-annually. The YTM at the beginning of the third
sladkih [1.3K]

Answer:

\mathbf{current  \ price \  of \  the \ bond=  \$848.78}

Explanation:

The current price of the bond can be calculated by using the formula:

current  \ price \  of \  the \ bond= ( coupon \times  \dfrac{ (1- \dfrac{1}{(1+YTM)^{no \ of \ period }})}{YTM} + \dfrac{Face \ Value }{(1+YTM ) ^{no \ of \ period}}

current  \ price \  of \  the \ bond= ( \dfrac{0.064 \times \$1000}{2} \times  \dfrac{ (1- \dfrac{1}{(1+ \dfrac{0.091}{2})^{8 \times 2}})}{\dfrac{0.091}{2}} + \dfrac{\$1000 }{(1+\dfrac{0.091}{2} ) ^{8 \times 2}})

current  \ price \  of \  the \ bond=  \$32 \times $11.19 + \$490.70

current  \ price \  of \  the \ bond=  \$358.08+ \$490.70

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5 0
3 years ago
You work for a leveraged buyout firm and are evaluating a potential buyout of UnderWater Company.​ UnderWater's stock price is $
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Answer:

a. The shareholders will want to tender their shares.

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Explanation:

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If 50% of the shares are bought for $18.75 Million, you will buy 0.625 million shares, so the total amount that will be paid is $11.72 million.

Now, the money against shares will be borrowed as collateral. This means that the new value of the equity will be $25.31 million – $11.72 million = 13.59 million.

1.25 million shares are there so now the price of the share will be  =  $10.87 million ($13.59 million/$1.25 million = $ 10.87 million).

b.The price of the shares has decreased from $13.59 to $10.87 after the tender offer, everyone will want to tender their shares for $18.75.

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3 0
3 years ago
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