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Helen [10]
3 years ago
6

Superior Company has provided you with the following information before any year-end adjustments: Net credit sales are $131,750.

Historical percentage of credit losses is 3%. Allowance for doubtful accounts has a credit balance of $400. Accounts receivables ending balance is $43,500. What is the estimated bad debt expense using the percentage of credit sales method
Business
1 answer:
aleksklad [387]3 years ago
5 0

Answer:

$3,553

Explanation:

Credit losses = Net credit sales × Historical percentage of credit losses

= $131,750 × 3%

= $3,953

Allowance for doubtful account has a credit balance of $400

The estimated bad debt expense can therefore be calculated as:

Bad debt expense = Credit losses - Allowance for doubtful accounts credit balance

= $3,953 - $400

= $3,553

Hence, the estimated bad debt expense using the percentage of credit sales method is $3,553

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Shkiper50 [21]

Answer: Conditionally renewable

Explanation:

Conditionally renewable is the type of policy offered by companies to their clients to not renew upon reasons that are stated in the contract.

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2 years ago
Gerald is assessing global entry strategies for his gourmet sandwich business. He doesn't want to take much risk, and he's willi
vitfil [10]

Gerald is assessing global entry strategies for his gourmet sandwich business. He does not want to take a lot of risk and he is willing to limit his control of international stores. Gerald will likely use a(n) __________ strategy.

Select one:

a. direct investment

b. franchising

c. exporting

d. joint venture

e. strategic alliance

Answer:

b. franchising

Explanation:

For a food business like a gourmet sandwich business, the best global entry strategy Gerald will likely take that involves low risk and limit in control of international store is franchising strategy.

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3 years ago
Alex doesn't care about where he lives, but he does care about what he eats. Alex spends all his money on restaurant meals at ei
Levart [38]

Answer:

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5 0
3 years ago
Heath Food Corporation’s bonds have 7 years remaining to maturity. The bonds have a face value of $1,000 and a yield to maturity
joja [24]

Answer:

8.55%

Explanation:

For computing the current yield first we have to determine the present value by applying the present value formula which is shown below:

Given that,  

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= -PV(Rate;NPER;PMT;FV;type)

After solving this, the present value is $1,052.06

Now the current yield is

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= $90 ÷ $1,052.06

= 8.55%

3 0
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soldier1979 [14.2K]
The answer is: 
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[A]: <span>friendly, but business-like .
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8 0
2 years ago
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