Answer:
C. The present value of cash flows in Investment A is higher than the present value of cash flows in Investment B.
Explanation:
Typically, discount rate represents cost of capital or funds used to finance the investment. This implies that the higher the cost of capital , the lower the present value of cash inflow on the investment and vice-versa.
Hence, the present value of cash flows in Investment A is higher than the present value of cash flows in Investment B, because A has a lower discount rate.
Answer:
c. debit to Bad Debts Expense for $6,900.
Explanation:
Allowance for Doubtful Accounts $1,100 credit balance,
Estimated Un collectibles $8000 credit
Required Adjustment $ 6900 credit
The adjustment to record bad debts for the period will require a
c. debit to Bad Debts Expense for $6,900.
Bad Debt Expense $ 6900 Dr
Allowance for Doubtful Accounts $ 6900 Cr
Alternatively if the allowance account had a debit balance the entry would have been posted adding the two amounts.
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Answer
The answer and procedures of the exercise are attached in the following image.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
Answer:
-$7,270
Explanation:
Accounts receivable is the amount that is owed to the business by various parties that is due within a particular period.
In this instance there was an aging analysis done that estimated that $6,700 will be uncollectible. This will result in a bad debt expense of -$6,700.
Before now there was a balance of -$570 in allowance for doubtful accounts. Meaning there was a debit balance attributed to uncollected debt.
The total debt balance will now be -6,700-570 = -$7,270