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Answer:
c) credit to Accounts Receivable - ZRT.
f) debit to Allowance for Doubtful Accounts.
Explanation:
As for the information provided,
We know in allowance method, provision is created as and when there are doubtful debts, for which entry is
Bad Debts Expense Account Dr.
To Allowance for doubtful debts.
And when the bad debts are actually written off then,
The entry will reduce the balance of accounts receivables and that of allowance as well.
Entry will be:
Allowance for Doubtful debts A/c Dr.
To Accounts Receivables.
Thus, correct options shall be:
Option c) and f)
Answer:
The correct answer is character
Answer: Henry should purchase this plant as it pays back in less than the 6 years it will have to be replaced in.
Payback period = 3.7 years
Explanation:
Payback period is a capital budgeting strategy that shows how long it will take for cash inflow to pay off the original investment.
The formula is;
= Year before payback + Cashflow remaining till payback/ Cash inflow in year of Payback
Year before payback
= 1,200,000/ 325,000
= 3.69
= 3 years
Cashflow remaining
= 1,2000,000 - (325,000 * 3)
= $225,000
= Year before payback + Cashflow remaining till payback/ Cash inflow in year of Payback
= 3 + 225,000/325,000
= 3.69
= 3.7 years
<span>Aggregate supply (as) denotes the relationship between the total quantity that firms choose to produce and sell and the price level of the output, holding the price of inputs fixed. </span>Aggregate supply is the total supply of services and goods that identifies the economy plan of a nation in a specific period of time.
