In terms of establishing an account receivable billing policy
and procedure includes the determining or knowing the number the days that has
been done between billings because this is essential to know if the policy is
upheld and proper procedures is being done.
Answer:
4,000
Explanation:
expected uncollectible 5% of Ar
5% of 100,000 = 5,000
current balance (1,000 credit)
Adjustment 4,000
When the uncolelctibles are made base on account receivable, the amount calculate is the ending balance and we should calculate the adjustment by the diference between beginning balance and ending balance
If the allowance is made based on sales then weshould adjust for the whole amount of the expected bad debt
Answer:
8.08
Explanation:
Hi!
The income elasticity of demand is calculated by dividing the negative % change in demand by the % change in real income.
We calculate the negative % change in demand as:
19/20 = 0.95, a 95%
Then, the % change in real income as:
(34,000-30,000)/34,000 = 0.1176, an 11.76%
So the income elasticity of demand is:
0.95/0.1176 = 8.08
Hope it helps! :)
Answer:
$125,000
Explanation:
The sales were $500,000
The variable cost of goods sold is $300,000
The variable selling and administrative expenses were $75,000
The fixed costs were $60,000
Therefore the contribution margin ratio using the variable costing can be calculated as follows
CMR= Sales revenue-Variable cost of good sold-The variable selling and administrative expenses
= $500,000-$300,000-$75,000
= $200,000-$75,000
= $125,000
Hence the contribution margin ratio is $125,000
Answer:
$44,994.56
Explanation:
Provided that
Spending amount for living expenses by a family = $40,000
Percentage increase is 4%
Number of years = 3
So, the family living expenses after three years equal to
= Spending amount for living expenses by a family × (1 + rate)^number of years
= $40,000 × (1 + 0.04)^3
= $40,000 × 1.124864
= $44,994.56
