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nydimaria [60]
3 years ago
11

Calistoga Produce estimates bad debt expense at 0.50% of credit sales. The company reported accounts receivable and allowance fo

r uncollectible accounts of $476,000 and $1,650 respectively, at December 31, 2020. During 2021, Calistoga's credit sales and collections were $315,000 and $307,000, respectively, and $1,880 in accounts receivable were written off. Calistoga's final balance in its allowance for uncollectible accounts at December 31, 2021, is:
Business
1 answer:
AveGali [126]3 years ago
7 0

Answer:

$1,345

Explanation:

Calculation to determine what Calistoga's final balance in its allowance for uncollectible accounts at December 31, 2021, is

First step is to calculate the Expense amount

Expense=Credit sales $315,000* .5%

Expense=$1,575

Second step is to calculate the Allowance

Allowance 12/31/2020 $1,650

Less Write-offs(1,880)

Allowance ($ 230)debit

Now let calculate the final balance in its allowance for uncollectible accounts

December 31, 2021 allowance for uncollectible accounts= ($230) + $1,575

December 31, 2021 allowance for uncollectible accounts=$1,345

Therefore Calistoga's final balance in its allowance for uncollectible accounts at December 31, 2021, is $1,345

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Vilka [71]

Below are the complete options:

changing beliefs about the extent to which a brand has certain attributes

encouraging the consumer to use stimulus generalization

adding new attributes to the product

encouraging the consumer to use stimulus discrimination

changing the importance of attributes

Answer:

changing the importance of attributes

Explanation:

Freshness dates shows for how long a drink can be considered to not have expired. For example Pepsi can be considered to give freshness from 6-9 months after the date printed on the bottle.

Pepsi spent about $25 million on advertising and promotion related to freshness dates. Initially freshness dates were only seen as important by a few people.

This resulted in 61 percent of cola drinkers now thinking it is important.

This exemplifies how importance of a product's attribute can be changed

6 0
2 years ago
If the cost of goods sold is more than the cost of goods manufactured, then
ivann1987 [24]

Answer:

C. Finished Goods Inventory has decreased.

Explanation:

Cost of goods manufactured (COGM) increases when finished goods inventory is <em>produced</em>, while cost of goods sold (COGS) increases when finished goods inventory is <em>sold</em>. If COGS has been increasing faster than COGM has been increasing, the company has been selling more goods than it has been producing. Therefore, it must have sold goods from its surplus of finished goods inventory. Thus, finished goods inventory has decreased.

8 0
3 years ago
Mount Company incurred a total cost of $8,600 to produce 400 units of pulp. Each unit of pulp required 5 direct labor hours to c
Sophie [7]

Answer:

The correct answer is option (B).

Explanation:

According to the scenario, the given data are as follows:

Total cost = $8,600

Total units = 400 Units

Direct labor hour per unit = 5

Variable cost = $1.50

So, we can calculate the fixed cost by using following formula:

Fixed cost = Total cost - Total Direct labor cost

Where, Total direct labor cost = $1.50 × 5 × 400 = $3,000

By putting the value in the formula, we get

Fixed cost = $8,600 - $3,000

= $5,600

5 0
3 years ago
You have just retired with savings of $2 million. If you expect to live for 57 years and to earn 7% a year on your savings, how
galben [10]

Answer:

Annual withdraw= $143,023.66

Explanation:

Giving the following information:

Present value (PV)= $2,000,000

Number of periods (n)= 57

Interest rate (i)= 7% a year

<u>To calculate the annual withdrawal, we need to use the following formula:</u>

Annual withdraw= (PV*i) / [1 - (1+i)^(-n)]

Annual withdraw= (2,000,000*0.07) / [1 - (1.07^-57)]

Annual withdraw= $143,023.66

6 0
3 years ago
A company issued 6%, 10-year bonds with a face amount of $90 million. The market yield for bonds of similar risk and maturity is
Leviafan [203]

Answer:

The bonds sold at: $122,106,600 dollars

Explanation:

We will calculate the present value of the coupon payment and the maturirty at market rate of 7%

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C         2.7(90 millions x 6% / 2 payment per year)

time 20  10 years and 2 payment per year

discounted at market rate: 7% divide by 2 payment per year:  0.035

2.7 \times \frac{1-(1+0.035)^{-20} }{0.035} = PV\\

PV 76.3551

Then present value of maturity:

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity   90.00

time            10 years

rate             0.07

\frac{90}{(1 + 0.07)^{10} } = PV  

PV   45.75

PV coupon  $76.3551

PV maturity  $45.7514

Total  $122.1066

7 0
3 years ago
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