In the given case the accounts were previously written off by debiting the Allowance for doubtful debts accounts now in order to revive these accounts receivable, we should Debit the Accounts Receivable and credit the Allowance for doubtful debts accounts. Hence the account to be credited is Allowance for doubtful debts accounts.
Hence the answer shall be Allowance for doubtful debts accounts
Answer:
0.24
Explanation:
PLT restaurant sold 2500 lunch boxes for $10 last month
This month they sold increase price by $5 and sold 2,200 boxes
The first step is to calculate the percentage change in quantity
= 2500-2000/2500 × 100
= 300/2500 × 100
= 0.12 × 100
= 12%
The percentage change in price can be calculated as follows
= 10-5/10 × 100
= 5/10 × 100
= 0.5 × 100
= 50%
Therefore the price elasticity of demand can be calculated as follows
= 12%/50%
= 0.24
Answer:
a. 5.39%
Explanation:
This question is asking for the after-tax cost of debt ;which is the YTM
Using a financial calculator, enter the following and adjust the time, and coupon payments to semiannual basis;
Maturity of the bond ; N = 20*2 = 40
Face value; FV = 1000
Price; PV = -1,025
Semiannual coupon payment; PMT = (9.25%/2)*1000 = 46.25
then compute semiannual interest rate; CPT I/Y = 4.489%
YTM (Pretax cost of debt ) = 4.489% *2 = 8.98%
WACC uses the aftertax cost of debt;
aftertax cost of debt = pretax cost of debt (1-tax)
= 8.98% *(1-0.4)
= 5.388%
Therefore, the component cost of debt for use in the WACC calculation is 5.39%
Answer:
Brand personality; line extension
Explanation:
A brand personality
Is something to which the consumer can relate; an effective brand increases its brand equity by having a consistent set of traits that a specific consumer segment enjoys
Line Extension
Line extension refers to the expansion of an existing product line.