Yes give you a chance to get ahead
Fixed expenses
are $76,000 per month and the company is selling 4,600 units per
month.
Answer:
December 31,
DR Bad Debt Expense $25,622
CR Allowance for Doubtful Accounts $25,622
Explanation:
The Allowance for Doubtful Accounts helps provide a sort of cushion for the business by accounting for potential bad debts for the business so that if bad debts occur, they are taken from this account and not the Receivables account.
Coronado estimates that 9% of receivables will be uncollectible so;
= 9% * 329,800
= $29,682
However, $4,060 is already in the account so the new balance that should be brought into the account to ensure that it totals $29,682 is;
= 29,682 - 4,060
= $25,622
AJ was recognizing the INFORMAL ORGANISATION OF THE COMPANY.
Informal organisation of a company refers to the interlocking social structure which govern how colleagues work together in practice. It describes the aggregate of behavior, interactions, norms and professional connections through which works get done.
Answer:
Compounding (Compound Interest)
Explanation:
Compounding (Compound Interest) refers to a process by which you earn interest not only on the money you directly invest but also on the interest you've earned in previous years.
Ex: $100 deposited @10% pa interest compounding annually for 2 years. Interest at 1st year end : 10% of 100 = 10 & Total Amount : 100 + 10 = 110. Interest at 2nd year end : 10% of 110 = 11 & Total Amount : 121 .
The above case shows how interest in 2nd period is calculated not only on principal amount $100, but also on $10 interest earned in previous period. So, interest in 2nd period is calculated as return percentage on 100 + 10 = 110.