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:
The answer is: D) As they are generally defined, money market transactions involve debt securities with maturities of less than one year.
Explanation:
Money market transactions involve the trading of financial instruments with high liquidity and short-term maturities (usually less than one year). The financial instruments traded include; treasury bills (T Bills), commercial papers issued by companies and certificates of deposit (CDs).
I encountered this question before but it had choices. These were the choices:
A. Current Trends.
<span>B. Inventory.
C. Processes
D. Plant and Equipment.
Rachel will describe it in her business plan under the heading D. PLANT AND EQUIPMENT.
Since her business is interior decorating, she must have a beautifully furnished office to persuade her potential clients to hire her. Her office is her output. It will help her generate income.
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Answer: $14,000 (Unfavorable)
Explanation: The book tax difference is the difference between the expenses for the book purpose in 2019 and the price of the option exercised. If the difference is positive it is unfavorable while if the difference is negative it is favorable.
Difference in book tax = The total value of the shares at the year - Amount of bargain element on option exercised.
Difference in book tax = ($40,000 × 1/2) - (1,000 × $6)
Difference in book tax = $20,000 - $6,000
Difference in book tax = $14,000
It is unfavorable because book tax expenses exceed the tax deductions.
Answer:
D. 400 million
Explanation:
Current Population of the country = 100 million
growth rate per year = g = 3.5%
Number of Years = n = 40 Years
Population after 40 year = ?
To calculate the population after 40 year use following formula:
Population after 40 years = Current year population x ( 1 + growth rate )^ number of years
Population after 40 years = Current year population x 
Population after 40 years = 100 million x 
Population after 40 years = 100 million x 
Population after 40 years = 100 million x 3.959259
Population after 40 years = 395.93 million
Population after 40 years = 400 million ( Rounded off to nearest hundred )
