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3 years ago

Required information

Business

1 answer:

liberstina [14]3 years ago

7 0

Answer and Explanation:

The estimation of the required balances are as follows:

Age Balance Estimated Estimated Uncollectible amount

of Dec-31 Percentage

Accounts Uncollectible

Not yet due $620,000 0.85% $5,270.00

1–30 days $248,000 1.60% $3,968.00

31–60 days $49,600 6.10% $3,025.60

61–90 days $24,800 30.75% $7,626.00

Over 90 days $4,960 64.00% $3,174.40

Total $947,360 $23,064

Now the journal entry is

but before that following calculation is needed

Ending balance of allowance for doubtful account $23,064

Less: Opening balance in allowance for doubtful account -$19,564

Bad debt expense for the year $3,500

The journal entry is

Bad debt expense $ 3,500

To Allowance for doubtful accounts $ 3,500

(Being bad debt expense is recorded)

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Answer:

with the new rate we will pay in 58 months.

if there is 2% commision charge: 59.35 = 60 months

Explanation:

Currently we owe 10,000

This will be transfer to a new credit card with a rate of 6.2%

We are going to do monthly payment of 200 dollars each month

and we need to know the time it will take to pay the loan:

We use the formula for ordinary annuity and solve for time:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C $200.00

time n

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PV $10,000.0000

$200 \times \frac{1-(1+0.0051667)^{-n} }{0.0051667} = 10000\\$

We arrenge the formula and solve as muhc as we can:

$(1+0.0051667)^{-n}= 1-\frac{10000\times0.0051667}{200}$

$(1+0.0051667)^{-n}= 0.74166667$

Now, we use logarithmics properties to solve for time:

$-n= \frac{log0.741667}{log(1+0.0051667)$

-57.99227477 = 58 months

part B

If there is a charge of 2% then Principal = 10,000 x 102% = 10,200

we use that in the formula and solve:

$(1+0.0051667)^{-n}= 1-\frac{10200\times0.0051667}{200}$

$(1+0.0051667)^{-n}=0.73650000$

$-n= \frac{log0.7365}{log(1+0.0051667)$

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6 0

3 years ago

Consider the capital asset pricing model. The market degree of risk aversion, A, is 3. The risk premium is 2.25%. If the risk-fr

inna [77]

Answer:

SO expected return on Mkt Portfolio Rm = 10.75%

Explanation:

market degree of risk aversion A = 3

Var = 0.0225 = SD^2

Rf = 4%

What is expected return on Mkt Portfolio ie Rm??

According to CAPM, Rm-Rf = A*SD^2

where SD is Std Dev (Recall SD^2 = Variance)

A is market degree of risk aversion

So we have Rm-4% = 3*0.0225

ie Rm = 4% + 3*0.0225 = 10.75%

SO expected return on Mkt Portfolio Rm = 10.75%

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4 years ago

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Answer:

International.

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• Desire to grow

• Increase in performance and recognition

• Unsolicited foreign orders

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• Potential to exploit a new technological advantage

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3 years ago

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Dennis_Churaev [7]

Answer:

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Explanation:

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Answer:

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