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Galina-37 [17]
2 years ago
7

Accounts Randall Company estimates its bad debts expense by aging its accounts receivable and applying percentages to various ag

e groups of the accounts. Randall calculated a total of $3,000 in possible credit losses as of December 31. Accounts Receivable has a balance of $128,000, and the Allowance for Doubtful Accounts has a credit balance of $500 before adjustment at December 31. What is the December 31 adjusting entry to provide for credit losses
Business
1 answer:
Crazy boy [7]2 years ago
8 0

Answer:

Explanation:

The journal entry will be:

Debit: Bad debt expense $2500

Credit: Allowance for doubtful $2500

Then, we will calculate the net amount of account receivable that should be included in current assets which will be:

Account receivable = $128000

Less: Allowance for doubtful = $500 + $2500 = $3000

Net amount of account receivable = $125000

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Locomotive Corporation is planning to repurchase part of its common stock by issuing corporate debt. As a result, the firm’s deb
QveST [7]

Answer: See explanation

Explanation:

a. What is the market value of Locomotive Corporation before and after the repurchase announcement?

Equity value = Debt value / Debt to equity ratio

= 3,300,000/0.3

= 11,000,000

Market value = Debt value + Equity value

= $3,300,000 + $11,000,000

= $14,300,000

b. What is the expected return on the firm’s equity before the announcement of the stock repurchase plan?

To solve this, we need to know the interest payment first which will be:

= $3,300,000 × 9%

= $3,300,000 × 0.09

= $297000

Return on equity will now be:

= (EBIT - interest) / Equity

= (1320000 - 297000) / 11000000

= 9.30%

c. What is the expected return on the equity of an otherwise identical all-equity firm?

This will be:

= Earnings before Interest / Unlevered firm value

= 1320000 / 14300000

= 9.23%

d. What is the expected return on the firm’s equity after the announcement of the stock repurchase plan?

This will be:

= 9.23% + 50% × (9.23% - 9%)

= 9.35%

5 0
2 years ago
What does stanley tell blanche and stella as they are going through her business papers?
nexus9112 [7]
Whatever belongs to Stella belongs to him. This play was wack
3 0
3 years ago
During November, TaskMaster purchased 208,000 pounds of direct materials at a total cost of $436,800. The total factory wages fo
aniked [119]

Answer:

See below

Explanation:

Given the above information,

Direct material price variance is computed as;

= (Actual price - Standard price) × Actual quantity

Actual price = $436,800/208,000

Standard price = $436,800/182,000

Actual quantity = 208,000

Direct material price variance

=[ ($436,800 / 208,000) - ($436,800 / 182,000 ] × 208,000

= ($2.1 - $2.4) × 208,000

= $62,400 unfavourable

8 0
3 years ago
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Vladimir79 [104]

Answer: skits?

Explanation:

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3 years ago
Select the correct answer. Which definition refers to visual merchandising? A. the art of presenting merchandise in a creative w
WITCHER [35]

Answer:

A

Explanation:

the art of presenting merchandise in a creative way that helps the store reach out to people

(if its not a, then its d)

6 0
2 years ago
Read 2 more answers
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