Answer:
Debit Bad debt expense $15,120
Credit Allowance for doubtful debt $15,120
Being entries to record estimated bad debts
Explanation:
When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.
To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.
Where a debit that had previously been determined to have gone bad gets settled, debit cash and credit bad debt expense.
Account receivables balance as at year end
= $257,000 - $131,000
= $126,000
Allowance for doubtful debt = 12% * $126,000
= $15,120
Answer:
A Dirty Float
Explanation:
A dirty float or managed float, refers to a floating exchange rate system operated by a country's central bank where there are occasional interventions in the foreign excange markets to influence the demand and supply with the intention of curbing perceived volatilities in the currency.
As stated in the question, the intervention of the Central Bank will usually occur when it believes that the currency has deviated too far from its fair value.
The dirty float system is a buffer against external economic influences that may want to disrupt the foreign exchange market in a country.
Actually, from 1946-1971, many industrialized nations around the world operated the fixed exchange rate system or the Bretton Woods agreement but this changed August 15, 1971, when President Richard Nixon decided to exit the United States from this system and till date most nations that intend to protect their domestic markets and industries against external foreign influences have adopted the dirty float exchange system.
Answer:
f(x) = -1.25x + 64 I hope this helps :)
Explanation:
total amount of money: $80
He spent $16 for the entrance of the fair and food.
80-(4+12) = 64
After that you subtract $1.25 per ride = -1.25x
Then it gives the function:
f(x) = -1.25x + 64
Answer:
- $25.50
- 90,000 units
- 140,000 units
Explanation:
1. Current contribution margin ratio
= (Selling price - Variable cost)/ Selling price
= (25 - 19.8) / 25
= 0.208
New Direct labor = 5.0 * ( 1 + 8%)
= $5.40
New variable cost = 19.8 + 0.4 = $20.20
To maintain 0.208
0.208 = (Selling price - 20.20) / Selling price
0.208 * Price = Price - 20.20
0.208Price - Price = -20.20
-0.792Price = -20.20
Price = -20.20/-0.792
Price = $25.50
2. Breakeven = Fixed Cost / Contribution Margin
Contribution Margin = Selling price - Variable cost
= 25 - 19.8
= $5.20
= 468,000/5.2
= 90,000 units
3. To earn $260,000;
= (Fixed Cost + 260,000) / Contribution margin
= (468,000 + 260,000) /5.2
= 140,000 units
Answer:
<em>Net operating income $8,950</em>
Explanation:
<em>The overall impact on the net operating income is the amount of increase in contribution from the addtional sales less the increase in monthly advertising budget. </em>
<em> $</em>
Contribution = ($75 × 190) = 14,250
Fixed cost - advertising <u> ( 5,300) </u>
Net operating income <u> 8950</u>
Please, note that the fixed costs of $194,000 per month are not relevant for this decision. Simply because they would be incurred either way and that are not completely traceable to the increase sales.
