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VikaD [51]
3 years ago
14

Assuming a 360-day year, proceeds of $48,750 were received from discounting a $50,000, 90-day note at a bank. The discount rate

used by the bank in computing the proceeds was
Business
1 answer:
PIT_PIT [208]3 years ago
3 0

Answer:

the discount rate should be 10%

Explanation:

The computation of the discount rate should be given below:

The Amount of discount is is

= $50,000 - $48,750

= $ 1,250

The $1,250 should be for 90 days.

So for 360 days, it should be

= $1,250 × 4

= $5,000.

And, the discount rate is

= $5,000 ÷ 50,000 × 100

= 10%

Hence, the discount rate should be 10%

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According to the Bureau of Labor Statistics​ (BLS) high-paying jobs in health care and jobs in​ leisure, hospitality, and educat
Damm [24]

According to analyzes by the Bureau of Labor Statistics, there will be expansion of complex goods and services, which require greater education in their production and marketing. Thus, these services tend to cater to those people who have the resources to pay for it. This means that the rapid expansion of services expected over the next five years will focus on the richest. Healthcare, education and leisure firms will tend to produce more personalized services to increase their profitability. This is basically the market logic of the economy.

8 0
3 years ago
Exercise 8-3
7nadin3 [17]

Answer:

(a) Prepare the entries to record sales and collections during the period.

  • It had net credit sales of $800,000  

Dr Accounts receivable $ 800,000

Cr Sales $ 800,000

  • Collections of $763,000.

Dr CASH $ 763,000

Cr Accounts receivable $ 763,000

(b) Prepare the entry to record the write-off of uncollectible accounts during the period.

  • It wrote off as uncollectible accounts receivable of $7,300  

Dr Allowance for Uncollectible Accounts $ 7,300

Cr Accounts receivable $ 7,300

(c) Prepare the entries to record the recovery of the uncollectible account during the period.

  • However, a $3,100 account previously written off as uncollectible was recovered before the end of the current period.  

Dr Accounts receivable $ 3,100

Cr Allowance for Uncollectible Accounts $ 3,100

(d) Prepare the entry to record bad debt expense for the period.

  • Uncollectible accounts are estimated to total $25,000 at the end of the period.  

Dr Bad Debt Expense $ 20,200

Cr Allowance for Uncollectible Accounts $ 20,200

Explanation:

If the company applies the allowance method, it means that the account Allowance for Uncollectible Accounts must show as balance the estimated value of $25,000

Because the company already has a CREDIT balance in the Allowance for Doubtful Accounts it's necessary to register an entry that complement the existing value and reflect the estimated value, $ 20,200  

Bad accounts are those credits granted by the company and there is no possibility of being charged.

When customers buy products on credits but the company cannot collect the debt, then it's necessary to cancel the unpaid invoice as uncollectible.

One way is to directly cancel bad debts at the time it was decided that the credit is bad, the total amount reported as bad debt expenses negatively affect the income statement and the accounts receivable are reduced by the same amount, less assets

The other way is to determine a percentage of the total amount of accounts receivable as bad debts, there are many ways to analyze accounts receivable and calculate the value of bad debts.

When the company has the percentage of uncollectible accounts, the required journal entry is Bad Expenses (debit) with Reserve for Bad Accounts (credit)

At the time of cancellation, since the expenses were recognized before, we only use the Allowance for Uncollectible Accounts (Debit)  with accounts receivable (credit), with this we are recognizing the bad credit of the company.

7 0
3 years ago
Some laws prohibit discrimination in employment. These laws promote which of the following primary functions of​ law? A. promoti
Nostrana [21]

Answer:

A. promoting social justice

Explanation:

Discrimination in any manner is prohibited at all the public places, and work places are part of such places covered.

There cannot be any discrimination on the grounds of religion, color, gender, or by any other categorization.

In this manner, every individual is treated equally, irrespective of the background he or she belongs too.

This provides a social justice to every individual. In this manner the social status, personality is not hindered.

7 0
3 years ago
Which of the following are examples of a primary market transaction? a. A company issues new common stock. b. An investor asks h
ella [17]

Answer:

d. Statements a and c are correct

Explanation:

The primary market is the market where for the first time the new securities such as shares, stocks, bonds, etc. are being sold to the general public or we can refer initial public offer. The initial public offer is an example of the primary market

On the other side, the secondary market is that market where the shares are bought or sold through the investors after the sale to the public at large.

7 0
3 years ago
If a land owner retains the right to plant and cultivate crops on the land but leases the rest of the land to a tenant, what rig
timofeeve [1]

Answer:

Right to transfer

Explanation:

The owner has opted to use some land but leases the rest to a tenant by exercising the right to transfer. The right to transfer is a contract which allows renting some part of the land to another party for a specific period of time. The contractual right and responsibility are transferred through delegation or assignment.

3 0
3 years ago
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