Answer:
Bad debt expense account will be debited with $3,250
Explanation:
It's the principle of double entry that for every debit you will have a credit.
The allowance account is a credit (in effect it reduces your Account receivables by the doubtful debts or to use a business Analyst language it de-risks the Asset balance of the balance sheet)
The Bad debt Account on the other hand is recognized as an expense. To project a realizable net income to our shareholders, because if the debts become uncollectible then our profits and shareholder values are at risk
Answer:
(i) 2.71 years
(ii) 5.38 years
(iii) Never or 0
Explanation:
1. Payback period:
= Initial cost ÷ cash inflows
= 1625 ÷ 600
= 2.71 years(Approx).
2. Payback period:
= Initial cost ÷ cash inflows
= 3225 ÷ 600
= 5.38 years(Approx).
3. The payback period for an initial cost of $5,100 is a little trickier.
Notice that the total cash inflows after eight years will be:
= 8 × $600
= $4,800
Payback period
= Initial cost ÷ cash inflows
= 5100 ÷ 600
= 8.5
This answer does not make sense since the cash flows stop after eight years, so again, we must conclude the payback period is never.
Answer:
Any subscription level, including QuickBooks Self-Employed
Explanation:
The question is incomplete, and it also has the answer itself
Refer the complete question below:
You have a client who needs a QuickBooks Online solution that includes tracking for sales and sales tax. Which subscription level in QuickBooks Online would you recommend?
Answer:
The price on the black market tends to be higher.
Explanation:
When price ceilings are placed in legal markets, buyers are able to get goods and services at lower prices. But sellers may not be willing to sell unlimited supply of goods at the low price. This could lead to artificial scarcity, and formation of black markets.
The main aim of black markets is for suppliers to maximise profits, so a supplier is able to sell his goods at an amount above the price ceiling set in the legal market.
Also black markets are characterised by practices such as tax evasion, which are beneficial to the suppliers.
