Answer:
The bad debts would be debited with $5,000.
Explanation:
The bad debts under the allowance method is calculated by either as a percentage of accounts receivables or as a percentage of sales.
Percentage of Sales method:
In the percentage of sales method the allowance is calculated as below:
Allowance for doubtful debts = Sales * Percentage for doubtful debts
Allowance for doubtful debts = $500,000 * 1% = $5,000
Now always remember that this amount will be used only and their is no need to include the allowance for doubtful accounts balance.
Whereas on the other hand, in the percentage of accounts receivable method the allowances are included in the amount calculated.
The entry would be:
Dr Bad Debt Expense $5000
Cr Allowance for Doubtful Debts $5000
Answer:
$16
Explanation:
Book Value of Equity = Value of complete equity/no of equity shares
Value of equity share as on 31 Dec 2019 = $3,750,000 + Net income - Dividend
= $3,750,000 + $750,000 - $500,000 = $4,000,000
Net income is a part of common equity, but dividend paid is not part of common equity as dividend paid reduces company's assets as cash or bank balance is reduced.
Provided there is no further issue of common stock and also no common stock is retired. Therefore number of shares = 250,000
Book value per share = $4,000,000/250,000 = $16
$16
This has become known as the mystical public punitive. In Criminology, this is a contentious issue, argued by many scholars that there is no definitive proof for this, which is the reason it is defined as "mystical", punitive being defined as a form of "punishment", relates to the fact that small cases of crime are inflated by the general public to promote specific ideas by groups or parties within society.
