<h2>Type of business for Juanita </h2>
The type of business best for Juanita to start as a sole proprietorship. This type of business is to purchase or rent the required equipment for the business. For becoming a sole proprietorship it also needs to set up some statements registering that Juanita is starting a business.
She also requires to obtain a consent or license from the local government regarding the business she is willing to start. There are many advantages Juanita would have when starting her own set up which may include being her own boss, retention on the company's entire profit and no special taxes to be paid.
•Make sure she is financially able to cope if losses are made. Investing in stock markets are risky and the money she put in could be lost so she must make sure she has other savings so she doesn't go in debt/bankrupt.
•Research in order to make an informed choice. She could research types of assets, expert advice, and how the investment would be split.
Answer:
B
Explanation:
Payback period is the total time it takes an organization to recover the initial capital incurred in acquiring an asset.
It is expressed in years and fraction of years.
Initial investment 20,000
Year 1 3000 17000
Year 2 8000 9000
Year 3 15,000
9000/15000= 0.6 years
The payback period = 2.6 years
Answer:
$23,300
Explanation:
Bad debt Expense will be calculated using the account receivable method. The expense is calculated using the account receivable aging analysis.
Closing Value of the Allowance for Doubtful Accounts will be as follow
As Allowance for Doubtful Accounts already have Credit balance of $12,200, we need to adjust the remainder to make the closing credit balance of Allowance for Doubtful Accounts $35,500 at the year end.
Adjustment Value = $35,500 + $12,200 = $23,300
This Expense will be recorded as follow
Dr. Bad Debt Expense $23,300
Cr. Allowance for Doubtful Accounts $23,300
