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Ratling [72]
2 years ago
13

On December 31, 2021, Coolwear Inc. had balances in Accounts Receivable and Allowance for Uncollectible Accounts of $48,000 and

$1,400, respectively. During 2022, Coolwear wrote off $625 in accounts receivable and determined that there should be an allowance for uncollectible accounts of $4,100 at December 31, 2022. Bad debt expense for 2022 would be:
Business
1 answer:
Reil [10]2 years ago
6 0

Answer:

$3,325

Explanation:

Bad Debt Expense = Allowance for uncollectible accounts 2022 - (Allowance for uncollectible accounts 2021 - Written off in accounts receivable

Bad Debt Expense = $4,100 - ($1,400 - $625)

Bad Debt Expense = $4,100 - $775

Bad Debt Expense = $3,325

So, the bad debt expense for 2022 would be $3,325.

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The multiplier is useful in determining the full-employment unemployment rate level of business inventories change in the rate o
sasho [114]

Answer:

The multiplier is useful in determining the change in GDP resulting from a change in spending

Explanation:

A change in autonomous spending will lead to a much larger final change in real GDP because of the multiplier effect. That spending will have a much larger final impact on real GDP.

7 0
3 years ago
In what circumstances is it most important to use multistage dividend discount models rather than constant-growth models?
patriot [66]

Answer:

when valuing companies with temporarily high growth rates.

Explanation:

Discounted dividend models are methods to assess a company's share price based on the dividends that company will distribute in the future. Also known by its name in English dividend discount model (DDM).

These models are based on the theory that the price of a share must be equal to the price of the dividends that the company will deliver, discounted at its net present value.

If the price of the share in the market is lower than the result obtained by the discounted dividend model, the share is undervalued and therefore it is advisable to buy. If, on the contrary, the market price is higher than the model, it is understood that the share price is too high.

Multistage dividend growth models

It is very difficult for a company to experience the same growth every year as the Gordon model assumes, so multistage models assume different growths for each period.

The most common is to use two or three stage growths, where at first the growths are higher but then tend to stabilize at a smaller constant growth. As for example in early stage companies.

5 0
3 years ago
Beyond-the-Sea Corporation and Homeport Company make a deal for Homeport's products, via e-records. Under the UETA, an e-record
Gelneren [198K]

Answer: d. leaves the sender's control.

Explanation:

Under the Uniform Electronic Transaction Act(UETA), there are three conditions that must be met for an e-record to be considered sent and the relevant one here is that the e-record leaves the control of the sender.

It does this by entering into an information processing system that the sender does not control of.

The other requirements demand that the e-record be properly addressed to a system specified by the recipient and this system must be able to process said e-record.

4 0
3 years ago
When it comes to credit cards, what does prepaid mean?
stiv31 [10]
prepaid means already paid
8 0
3 years ago
AB Builders, Inc., has 16-year bonds outstanding with a par value of $2,000 and a quoted price of 99.727. The bonds pay interest
galben [10]

Answer:

6.54%

Explanation:

Face Value = $2,000

Current Price = 2000 x 99.727% =  1994.54

YTM = 6.56%

We can find the coupon rate by a simple formula

Coupon Rate = (Interest / Face value) x 100

We need to find interest first in order to find coupon rate

YTM = Interest / Current price

6.56% x 1994.54 = Interest

130.84 = Interest

Coupon Rate = (130.84 / 2000) x 100

Coupon Rate = 6.54%

6 0
3 years ago
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