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makkiz [27]
3 years ago
15

Callahan and megan plan to invest in corporate securities. while callahan plans to retire next year on his 65th birthday, megan

is celebrating her first job after college and her 22nd birthday. which of the two investors would be well advised to choose a more conservative investment strategy? a. callahanb. megan
Business
1 answer:
madreJ [45]3 years ago
3 0

Answer:

a. callahanb

Explanation:

Conservative investment strategy means investing in a less risky asset so the there is certain cash flow . Investment in govt bonds or treasury bills or company debentures etc of good rating are example of conservative investment strategy.

Old timers should opt for conservative investment . It is so because their risk bearing capacity is low. They can be reined in case of any windfall loss .

They have fixed liability in the form of medical expenses etc.

On the other hand youngsters have no such fixed liability . So they go for some risky alternative to take advantage of risk premium.

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Compute the uncollectible account expense, and make the appropriate journal entry, for the current year assuming the uncollectib
Gnoma [55]

Question Completion:

Johnson Corporation’s Unadjusted Trial Balance at year-end included the following accounts:

Debit Credit

Sales (75% represent credit sales) (credit) $1,152.000

Accounts Receivable(debit) $288,000

Allowance for Doubtful Accounts (credit) $2,184

Answer:

<h2>Johnson Corporation</h2>

a. Without considering the balance in the Allowance for Doubtful Accounts, income statement approach, 1% of total sale:

Journal Entry:

Debit Uncollectible Accounts Expense $11,520

Credit Allowance for Doubtful Accounts $11,520

To record the uncollectible accounts expense for the year.

b. Without considering the balance in the Allowance for Doubtful Accounts, income statement approach, 1.5% of credit sales:

Journal Entry:

Debit Uncollectible Accounts Expense $12,960

Credit Allowance for Doubtful Accounts $12,960

To record the uncollectible accounts expense for the year.

c. Considering the balance in the Allowance for Doubtful Accounts, balance sheet approach

Journal Entry:

Debit Uncollectible Accounts Expense $9,816

Credit Allowance for Doubtful Accounts $9,816

To record the uncollectible accounts expense for the year.

Explanation:

a) Data and Determination of Uncollectible Expenses and Allowances:

Sales (75% represent credit sales) (credit) $1,152,000

Accounts Receivable(debit) $288,000

Allowance for Doubtful Accounts (credit) $2,184

1. Uncollectible Accounts Expense = 1% of Sales:

= 1% of $1,152,000

= $11,520

2. Uncollectible Accounts Expense = 1.5% of Credit Sales:

= 1.5% of $864,000 (75% of $1,152.000 )

= $12,960

3. Allowance for Doubtful Accounts based on an aging of accounts receivable of $12,000:

Adjustment required to bring the Allowance for Doubtful Accounts to $12,000 is $9,816 ($12,000 - 2,184).

4 0
3 years ago
PLZ HELP!! 20 POINTS BRAINLIEST PLZ HELP IM FAILING!!
Westkost [7]

。☆✼★ ━━━━━━━━━━━━━━  ☾  

The correct answer is option D

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。☆✼★ ━━━━━━━━━━━━━━  ☾

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3 years ago
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Which of the following most accurately describes one of the powers of stock holdiers
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Answer:

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3 years ago
Abbott Company uses the allowance method of accounting for uncollectible accounts. Abbott estimates that 4% of credit sales will
OverLord2011 [107]

Answer:

$3760

Explanation:

Calculation to determine the December 31 balance in Bad Debt Expense

Using this formula

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Let plug in the formula

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Bad debt expense= $94,000 × 0.04

Bad debt expense= $3760

Therefore the December 31 balance in Bad Debt Expense will be $3760

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