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3 years ago

Journalize the following transactions, using the direct write-off method of accounting for uncollectible receivables:

Business

1 answer:

Nutka1998 [239]3 years ago

6 0

Answer:

Mar. 17

Dr Cash $275

Dr Allowance for uncollectible accounts $1,000

Cr Accounts receivables $1,275

July 29

Dr Accounts receivables $1,000

Cr Bad Debts expense $1,000

Dr Cash $1,000

Cr Accounts receivables $1,000

Explanation:

Preparation of the journal entries using the direct write-off method of accounting for uncollectible receivables

Mar. 17

Dr Cash $275

Dr Allowance for uncollectible accounts $1,000

Cr Accounts receivables $1,275

($275+$1,000)

July 29

Dr Accounts receivables $1,000

Cr Bad Debts expense $1,000

Dr Cash $1,000

Cr Accounts receivables $1,000

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You can afford a $1050 per month mortgage payment. You've found a 30 year loan at 8% interest.

Paladinen [302]

Answer:

loan can you afford = $143097.67

total money will you pay the loan company = $378000

interest amount = $234902.33

Explanation:

given data

principal = $1050 per month

time = 30 year = 30 × 12 = 360 months

interest rate = 8% = $\frac{0.08}{12}$ = 0.006667 monthly

solution

we get here first maximum amount of loan by present value of annuity as

present value of annuity = principal × $\frac{1-(1+rate)^{-t}}{rate}$ .........1

put here value we get

present value of annuity = 1050 × $\frac{1-(1+0.006667)^{-360}}{0.006667}$

present value of annuity = $143097.67

and

now we get total amount of money pay will be as

total amount of money pay = principal × time period

total amount of money pay = $1050 × 360

total amount of money pay = $378000

and

total amount of interest paid will be

interest amount = total amount paid - loan amount

interest amount = $378000 - $143097.67

interest amount = $234902.33

6 0

4 years ago

Your company will generate $47,000 in annual revenue each year for the next seven years from a new information database. If the

Alla [95]

Answer:

The answer is $252415.91

Explanation:

Solution

Now

A step bu step solution is provided below in showing the present value of the savings

Given that:

Year Annual Revenues Calculations Present value

1 $47000 $47000 / (1.071)^1 $43884.22

2 $47000 $47000 / (1.071)^2 $40975

3 $47000 $47000 / (1.071)^3 $38258.63

4 $47000 $47000 / (1.071)^4 $35722.35

5 $47000 $47000 / (1.071)^5 $33354.2

6 $47000 $47000 / (1.071)^6 $31143.04

7 $47000 $47000 / (1.071)^7 $29078.47

Total present value $252415.91

Hence the current or present value of the savings is $252415.91

7 0

4 years ago

On January 1, 2009, a U.S. firm made an investment in Germany that will generate $5 million annually in depreciation, converted

Afina-wow [57]

Answer:

The expected real value (in terms of January 1, 2009, dollars) of the depreciation charge in year 2013 will be $1,958,815.416.

Explanation:

It is expected that the value of the dollar in the German market will fall at the same rate as that of the real market value of the dollar when we envisage the exchange rate will remain the same. Thus the depreciation of the tax write-off in terms of its real value in dollars will fall at 5% every year from 2009 to 2013.

Therefore, at a tax rate of 50% in Germany, a $2.5 million charge on depreciation on the investment of $5 million will result in 2013.

To calculate the real value of the dollar at an inflation of 5% yearly in 2013

When the tax rate in German is 50%, then charges of depreciation of $5 million will equal4$2.5 million in 2013 dollars. When the dollar's real value of this write-off is declining due to the inflation at 5% annually, the real value in 2013 will be calculated as:

Given: $2,500,000 (P/F , 5%, 5years) ; 0.78356 (factor for calculating the amount to be recieved after 5years)

= $2,500,000 * 0.78356

= $1,958,815.416

8 0

3 years ago

For a stock to be in equilibrium, that is, for there to be no long-term pressure for its price to depart from its current level,

Alex_Xolod [135]

Answer:

c.the expected future returns must be equal to the required return.

Explanation:

When the stock is at equilibrium than the intrinsic value of the stock is equivalent to the market price of the stock that depicts that the expected returns which held in the future should be equivalent to the required return

Therefore the option c is correct

And, the other options that are mentioned in the question are incorrect

4 0

4 years ago

The present government has initiated the tax reforms such as relaxation of taxes on relaxing a property sales tax, and removal o

DochEvi [55]

Answer:

= the IS curve shifts right and the

economy moves along the LM curve

Explanation:

= the IS curve shifts right and the

economy moves along the LM curve= the IS curve shifts right and the

economy moves along the LM curve

5 0

3 years ago