I believe it’s all of the above
Answer:
$20,400
Explanation:
The computation of the bad debt expense for 2020 is shown below:
Ending balance of Allowance for Uncollectible Accounts = Beginning balance of Allowance for Uncollectible Accounts + bad debts -write off amount
where,
Ending balance of allowance for uncollected accounts is
= $800,000 × 5%
= $40,000
Beginning balance of Allowance for Uncollectible Accounts is $40,000
And, the written off amount is
= $28,800 - $8,400
= $20,400
So, the bad debt expense is
= $40,000 - $40,000 + $20,400
= $20,400
We simply applied the above formula so that the bad debt could arrive
Answer:
$557.55
Explanation:
Missing word <em>"The interest rate is 16% per year"</em>
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Present Value of annuity of 1 = (1-(1+i)^-n)/i
Where, i = 16%, n=15
Present Value of annuity of 1 = (1-(1+0.16)^-15)/0.16
Present Value of annuity of 1 = 5.575456
Present Value of saving of electricity expense = Annual Saving * Present Value of annuity of 1 = $100.00 * 5.575456 = $557.55. So, the amount we can afford to pay is $557.55
Answer:
$31,670
Explanation:
Given that,
Revenue earned on account during Year 2 = $111,000
Cash collected from its receivables accounts during Year 2 = $76,000
Uncollectibles:
= 3% of its sales on account
= 0.03 × $111,000
= $3,330
Net realizable value of Miller's receivables at the end of Year 1:
= Revenue earned on account - Cash collected from its receivables accounts - Uncollectibles
= $111,000 - $76,000 - $3,330
= $31,670
