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3 years ago

Under the allowance method, Bad Debt Expense is recorded

1 answer:

3 0

The correct option is A.
Under the allowance method, bad debt expense is recorded FOR AN AMOUNT WHICH THE COMPANY ESTIMATES IT WILL NOT COLLECT.
Allowance method is a method of accounting that is used to estimate the amount of uncollectibles at the end of each financial period. Uncollectibles refers to debts which the company has no hope of ever collecting them again.

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Kansas Enterprises purchased equipment for $79,000 on January 1, 2021. The equipment is expected to have a five-year service lif

svetoff [14.1K]

Answer:

Annual depreciation= $14,420

Book value= $50,160

Explanation:

Giving the following information:

Purchase price= $79,000

Useful life= 5 years

Salvage value= $6,900

To calculate the depreciation expense, we need to use the following formula:

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (79,000 - 6,900) / 5

Annual depreciation= $14,420

Now, the book value:

Book value= purchase price - accumulated depreciation

Book value= 79,000 - (14,420*2)

Book value= $50,160

4 0

3 years ago

A _____ interview allows interviewer's discretion in choosing the questions to be asked and generally includes open-ended questi

Kay [80]

A non directive interview allows interviewer's discretion in choosing the questions to be asked and generally includes open-ended questions about the candidate's strengths, weaknesses, career goals, and work experience.

6 0

3 years ago

The business judgment rule provides corporate officers and directors protection when Multiple Choice the liability is a result o

oee [108]

Answer:

they set up a committee to establish a procedure for making decisions that are in the best interests of the corporation.

Explanation:

The business judgment rule provides corporate officers and directors protection when they set up a committee to establish a procedure for making decisions that are in the best interests of the corporation.

Generally, the business judgment rule is a legal principle that primarily protect the board of directors from breach of fiduciary duty liability, in as much as the directors acted in good faith of the shareholders and ensuring a logical and well informed decision-making process.

The fiduciary duty liability of the corporate officers and directors of an organization to its shareholders are duty of loyalty, care, prudence, which implies, they'll always make the interest of the corporation and its shareholders a high level priority.

Hence, the business judgment rule is aimed at protecting and mitigating the risks faced by corporate officers and directors in the event of litigations because it is assumed that they're acting in the interest or favor of the corporation and its shareholders.

7 0

3 years ago

Variable and absorption costing and breakeven points. Camino, a leading firm in the sports industry, produces basketballs for th

Vlad1618 [11]

Answer:

1 VARIABLE COSTING ABSORPTTION THROUGHPUT

sales 4800000 4800000 4800000

opening stock 0 0 0

produced 2940000 3320000 1260000

closing 140000 158095.24 60000

cost of sales 2800000 3161904.762 1200000

contribution 2000000 1638095.238 3600000

direct labour 1680000

fixed cost

admin 660000 660000 660000

manufacturing 380000 380000

net income 960000 978095.2381 880000

2. variable absorption throughput

breakeven $218,487 $160,976 121353.5589

3. units to be sold 145000 87640.44944 332000

Explanation:

UNIT COST 7 7.90 3

material 3 3 3

labor 4 4

fixed cost 0.90

produced units

opening 0 0 0

produced 420000 420000 420000

closing 20000 20000 20000

sold 400000 400000 400000

breakeven = fixed cost / contribution per unit

3. change in unit cost

variable absorption throughput

material 4 4 4

labour 4 4

fixed cost 0.9

unit cost 8 8.9 4

sales

opening stock

produced

closing

cost of sales

contribution 1160000 780000 1328000

direct labour 168000

fixed cost

admin 660000 660000 660000

manufacturing 380000 380000

net income 120000 120000 120000

to get the amounts for the closing stock, opening stock, produced and sold we multiply by unit cost

to get produced units we take sold stock plus closing stock less openning stock

to get the units that must be sold to make net income of 120 000

we do bottom up approach and can stop at contribution then divide it by contribution per unit.

3 0

4 years ago

The argument that industries should be temporarily protected by tariffs or quotas to allow firms to develop a competitive produc

olga55 [171]

Answer: infant industry argument

Explanation:

The infant industry argument simply means that the new industries in a particular economy should be protected at all cost from the multinationals or already developed foreign firms so that they themselves can grow and that the foreign firms will not hinder their progress and growth.

This usually applies to small and newly established firms. One of the main reason for taxation is to help protect such industries from competition thqt can hinder them.

8 0

3 years ago