Answer:
Debit Cash for $406,602; Debit Finance charge for $7,938; Debit Loss on sale of receivables for 26,460; and Credit Accounts receivable for $441,000.
Explanation:
Before preparing the journal entry, the following calculations are made firs:
Finance charge = Percentage of finance charge * Accounts receivable = 1.80% * $441,000 = $7,938
Loss on sale of receivables = Percentage retained * Accounts receivable = 6% * $441,000 = $26,460
Cash = Accounts receivable - Finance charge - Loss on sale of receivables = $441,000 - $7,938 - $26,460 = $406,602
The journal entry will now look as follows:
Date Details Debit ($) Credit ($)
01 Jul '20 Cash 406,602
Finance charge 7,938
Loss on sale of receivables 26,460
Accounts receivable 441,000
(To record factoring of accounts receivable.)
The following information is provided for each division. Investment Center Net Income Average Assets Cameras and camcorders $ 6,800,000 $ 20,600,000 Phones and communications 3,010,000 21,500,000 Computers and accessories 1,100,000 16,600,000 Assume a target income of 14% of average invested assets. Required: Compute residual income for each division. (Enter losses with a minus sign.)
Answer and Explanation:
The calculation of the residual income for each division is given below:
Target Income Cameras & Camcorders Phones & Comm Computers & Acc.
Average Assets $20,600,000 $21,500,000 $16,600,000
Target Return 14% 14% 14%
Target Income $2,884,000 $3,010,000 $2,324,000
Residual Income Cameras & Camcorders Phones & Comm Computers & Acc.
Net Income $6,800,000 $3,010,000 $1,100,000
Less: Target Income $2,884,000 $3,010,000 $2,324,000
Residual Income $3,916,000 $0 -$1,224,000
The physical units method of joint cost allocation allocates costs based on a.the estimated selling price of the various finished products minus the costs to sell the products. b.the market values of the various finished products. c.a weight factor multiplied by physical units. d.an objective, quantitative metric such as pounds, square feet, or gallons.
Answer:
d. an objective, quantitative metric such as pounds, square feet, or gallons.
Explanation:
In Accounting, Costing is the measurement of the cost of production of goods and services by assessing the fixed costs and variable costs associated with each step of production. The various type of costs are;
1. Product cost is the expenses incurred when a product is sold.
2. Period cost refers to the period in which costs are incurred.
3. Fixed cost refers to costs that remains constant over variations in production activity, irrespective of amount of goods.
3. Variable cost refers to cost which are the same per unit of production but vary directly with level of output.
4. Direct costs refer to the costs that are peculiar to a particular department or area while indirect cost can't be traced to any.
5. Manufacturing overhead are all indirect cost required in producing a good that isn't associated with direct materials or direct labor.
Generally, the physical units method of joint cost allocation allocates costs based on an objective, quantitative metric such as pounds, square feet, or gallons.
Some insurance companies begin paying claims only after the policyholder has paid a certain amount of money called a...
1) Premium
2) Term
3) Deductible
top earning game of USA
Answer:
Clash of Clans by Supercell
Explanation:
According to Góogle Play ranking as of April 2021, the top-earning game of the USA is Clash of Clans by Supercell.
This game is available on the Andriod operating system. and it has been in existence since 2012. It currently has close to a billion downloads across platform different website platforms.
in research defining problem involves the task of laying down boundaries which a researcher shall study the problem with a predetermined objective in view. defining research problem clearly is a crucial part of a research study .therefore what step the researcher should follow for defining and formulating a research problem?
Explanation:
Steps in formulating a research problem
Steps of the research process
Step 1: Identify the Problem.
Step 2: Review the Literature.
Step 3: Clarify the Problem.
Step 4: Clearly Define Terms and Concepts.
Step 5: Define the Population.
Step 6: Develop the Instrumentation Plan.
Step 7: Collect Data.
Step 8: Analyze the Data.
What's the likely outcome of many people attempting to buy a small amount of goods?
A. recession
B. inflation
C. elasticity
D. deflation
Answer: B (inflation)
Explanation:
You’ve been invited to help a foreign affiliate of your company set next year’s prices. Inflation last year was 5%, the unemployment rate dropped to record lows, and GDP sky-rocketed. In addition, geopolitical tensions led the price of crude oil to rise by 50%. Given these circumstances, what do you think annual inflation will be next year? The most likely rate is below 5%. 0%. above 5%. 5%.
Answer: Above 5%
Explanation:
Unemployment has dropped to record lows which means that more people are able to afford goods and services. This increase in demand will shift the demand curve to the right thereby increasing prices.
Crude oil also rose in price which means that the price of gasoline has risen as well as the price of transport which is a major component of inflation.
Given these factors, inflation is sure to rise above the 5% level of the previous year.
Bramble Corporation produces snowboards. The following per unit cost information is available: direct materials $10, direct labor $4, variable manufacturing overhead $6, fixed manufacturing overhead $13, variable selling and administrative expenses $5, and fixed selling and administrative expenses $13. Using a 40% markup percentage on total per unit cost, compute the target selling price.
Answer:
See below
Explanation:
Given the above information, we will use variable costing to calculate the unitary cost.
Total unitary cost = Direct material + Direct labor + Variable overhead + Variable selling and administrative
= $10 + $4 + $6 + $5
= $25
Selling price = $25 × 1.40
Selling price = $35
Therefore, the targeted selling price is $35
The following information relates to a companyâs accounts receivable: gross accounts receivable balance at the beginning of the year, $330,000; allowance for uncollectible accounts at the beginning of the year, $22,000 (credit balance); credit sales during the year, $1,100,000; accounts receivable written off during the year, $13,000; cash collections from customers, $1,000,000. Assuming the company estimates that future bad debts will equal 10% of the year-end balance in accounts receivable.
Required:
a. Calculate the year-end balance in the allowance for uncollectible accounts.
b. Calculate bad debt expense for the year.
Answer:
A. $41,700
B. $32,700
Explanation:
a. Calculation to determine the year-end balance in the allowance for uncollectible accounts.
Beginning account receivable$330,000
Add Credit sale $1,100,000
Less Account receivable written off ($13,000)
Less Cash collected ($1,000,000)
Ending account receivable
$417,000
Year-end balance in the allowance for uncollectible accounts $41,700
($417,000 * 10%)
Therefore the year-end balance in the allowance for uncollectible accounts will be $41,700
b. Calculation to determine the bad debt expense for the year
Account receivable written off $13 000
Add Year-end balance in the allowance for uncollectible accounts $41,700
Less Beginning balance in the allowance for uncollectible accounts ($22,000)
Bad Debt Expense $32,700
Therefore the bad debt expense for the year will be $32,700
Superstition Industries has a $2,000,000 asset investment and is subject to a 30% income tax rate. Cash inflows from the project are expected to average $400,000 before tax over the next few years; in contrast, average income before tax is anticipated to be $350,000. The company's after-tax accounting rate of return on this investment is:
Answer:
12.25%
Explanation:
Calculation to determine what The company's after-tax accounting rate of return on this investment is:
Using this formula
After-tax accounting rate of return =Avarage income/Average investment
Let plug in the formula
After-tax accounting rate of return=($350,000*70%)/$2,000,000
(100%-30%=70%)
After-tax accounting rate of return=$245,000/$2,000,000
After-tax accounting rate of return=0.1225*100
After-tax accounting rate of return=12.25%
Therefore The company's after-tax accounting rate of return on this investment is:12.25%
It costs Sunland Company $26 per unit ($18 variable and $8 fixed) to produce its product, which normally sells for $38 per unit. A foreign wholesaler offers to purchase 4400 units at $21 each. Sunland would incur special shipping costs of $2 per unit if the order were accepted. Sunland has sufficient unused capacity to produce the 4400 units. If the special order is accepted, what will be the effect on net income
Answer:
Effect on income= $4,400 increase
Explanation:
Because it is a special order and there is unused capacity, we will not take into account the fixed costs.
To calculate the effect on income, we need to use the following formula:
Effect on income= number of units*unitary contribution margin
Effect on income= 4,400 (21 - 18 - 2)
Effect on income= $4,400 increase
In the previous two presidential elections in the United States, very long wait times have been witnessed at precincts (voting stations) in some states. In Philadelphia as well, some voters complained about the long lines in some precincts, with most of the complaints coming from precinct A. In 2020, the average number of voters arriving at Precinct A was 35 per hour and the arrivals of voters was random with a coefficient of variation of 1 (CVa=1). Philadelphia deployed 1 voting machine in Precinct A. Suppose that each voter spent, on average, 1.667 minutes in the voting booth (this is the time needed to cast his/her vote using a voting machine), with a standard deviation of 2 minutes.
How long, on average, did a voter have to wait in line at precinct A in 2020 before entering a booth to cast his/her vote?
a. 58 minutes
b. 60 minutes
c. 62 minutes
d. 56 minutes
e. 71 minutes
f. There is not sufficient information to answer the question.
Answer:
The average waiting time at precinct A in 2020 before entering a booth to cast vote is
f. There is not sufficient information to answer the question.
Explanation:
The answers provided by 'a' to 'e' are outlandish. Secondly, to compute the average waiting time, one needs to ascertain the total time spent at the voting station by each voter. And then, this time will be subtracted from the actual voting time based on standard time to determine the waiting time.
Townsend Industries Inc. manufactures recreational vehicles. Townsend uses a job order cost system. The time tickets from November jobs are summarized as follows:
Job 201 $6,240
Job 202 7,000
Job 203 5,210
Job 204 6,750
Factory supervision 4,000
Factory overhead is applied to jobs on the basis of a predetermined overhead rate of $18 per direct labor hour. The direct labor rate is $40 per hour.
Required:
a. Journalize the entry to record the factory labor costs.
b. Journalize the entry to apply factory overhead to production for November.
Answer:
Part a
Debit : Work in Process - Job 201 $6,240
Debit : Work in Process - Job 202 $7,000
Debit : Work in Process - Job 203 $5,210
Debit : Work in Process - Job 204 $6,750
Debit : Overheads $4,000
Credit : Wages Payable $29,200
Part b
Debit : Work in Process $11,340
Credit : Overheads $11,340
Explanation:
To apply overheads, determine the total direct labor hours for each job
Direct labor hours = Total direct labor Cost ÷ Direct labor rate
therefore,
Job 201 = $6,240 ÷ $40 = 156
Job 202 = $7,000 ÷ $40 = 175
Job 203 = $5,210 ÷ $40 = 130
Job 204 = $6,750 ÷$40 = 169
Total = 630
Overheads applied = $18 x 630 hours = $11,340
Suppose firms become very optimistic about future business conditions and invest heavily in new capital equipment.
Show the short-run effect of this optimism on the aggregate-demand curve.
Aggregate DemandAggregate SupplyLRASPrice LevelQuantity of OutputAggregate Demand Aggregate Supply LRAS
Which of the following reasons could explain why the aggregate quantity of output supplied changes?
A. Wages are not sticky.
B. The price level has risen.
C. Prices are sticky.
D. People have misperceptions about the price level.
Answer:
Aggregate Supply Curve = Shifts leftward.
Aggregate Demand Curve = Shifts Rightward.
In the short run, companies will become more optimistic and when they invest in new equipment, Aggregate supply curve shifts left because of the input prices of the new equipment.
Aggregate demand curve will shift right because of people will be optimistic about future business opportunities as well.
Reasons why aggregate quantity of output supplied changes.
B. The price level has risen.
C. Prices are sticky.
D. People have misperceptions about the price level.
The price level will rise in the short run due to the investment in more equipment and as prices are sticky, people will have misconceptions about the price level thinking that it will remain high which is why supply changes.
Suppose two factors are identified for the U.S. economy: the growth rate of industrial production, IP, and the inflation rate, IR. IP is expected to be 6% and IR 5%. A stock with a beta of 1 on IP and 0.8 on IR currently is expected to provide a rate of return of 11%. If industrial production actually grows by 7%, while the inflation rate turns out to be 8%, what is your best guess for the rate of return on the stock
Answer:
the best guess is 14.4%
Explanation:
The computation of the best guess for the rate of return on the stock is shown below
Before
11% = α + [6% × 1] + [5% × 0.8]
11% = α + 6% + 4%
α = 1%
Now With the changes:
= 1% + [7% × 1] + [8% × 0.8]
= 1% + 7% + 6.4%
= 14.4%
Hence, the best guess is 14.4%
Rent-to-buy (RTB) rents medical equipment to its customers offering them the option of converting rentals into eventual purchases. The company is looking to understand better its X-ray machine rental operations. Here are some measures of their current operations. For X-ray machines, RTB signs 100 new leases every month. Each lease lasts a period of 3 months. Customers return the X-ray machine to RTB upon the completion of 3 months. In addition to those in circulation (i.e., X-ray machines that are currently with customers), RTB holds about 150 X-ray machines in storage.
1. On average, how many X-ray machines does RTB own?
2. Some of RTB’s customers purchase their X-ray machines at the end of their lease. On average, RTB sells 220 X-ray machines every month to end-of-lease customers. RTB immediately replaces them by purchasing new units. On average, how long does RTB own a machine?
Trek Company has the following production data for April: units transferred out 40,200, and ending work in process 6,220 units that are 100% complete for materials and 40% complete for conversion costs. If unit materials cost is $4 and unit conversion cost is $10. Determine the costs to be assigned to the units transferred out and the units in ending work in process.
Answer:
the costs to be assigned to the units transferred out and the units in ending work in process is $562,800 and $49,760 respectively
Explanation:
The computation is shown below:
Cost assign to units transferred out is
= 40,200 units × $4 + 40,200 units × $10
= $160,800 + $402,000
= $562,800
And, the Cost assign to work in progress is
= 6,220 units × $4 + (6,220 units × 0.40) × $10
= $24,880 + $24,880
= $49,760
Hence, the costs to be assigned to the units transferred out and the units in ending work in process is $562,800 and $49,760 respectively
+
What is one way you can meet students with common interests in an online school?
O A dedicated learning space.
O National clubs
O The OLS
O Class Connects
Answer: National Clubs
Explanation:
There are national clubs where students with common interests can meet via an online school such as the K12 online national clubs. Enrolling for the club is not a difficult process and the schedule can then be accessed from the Class Connect schedule.
These clubs offer a diverse range of interests and subjects such as engineering, sketching and others and they are led by teachers from a school which is K-12 registered and powered.
The RIASEC model is one way to classify people by their personality type. The model suggests that employees will have more career satisfaction, job knowledge, and longevity if their occupations match their personality type.
a. True
b. False
Answer:
True
Explanation:
The SDS ( RIASEC MODEL) is a direct product of a theory of personality types and environmental models developed by John Holland.
It proves that you can use your three-letter Summary Code to locate occupations (or fields of study, or leisure activities) that correspond best with your personality and thus are most likely to satisfy you.
The general factory overhead and purchasing department expenses are common costs that the company allocates to all of its products using total sales dollars as the allocation base. The equipment used to manufacture Product A does not wear out through use and it has no resale value. What is the financial advantage (disadvantage) of dropping Product A
Answer: Disadvantage of $52,000
Explanation:
Financial advantage(disadvantage) of dropping Product A will depend on if the savings associated with the drop will be more than the contribution margin that A brings in.
If the product is dropped, the fixed costs that would be dropped are: the salary of the manager, the advertising for the product and the insurance on the inventories of the product.
The other fixed costs are either general or irrelevant (product does not wear so depreciation is irrelevant)
Advantage (disadvantage) = Savings - Contribution margin
= (65,000 + 35,000 + 8,000) - 160,000
= (52,000)
Assume the following account balances at January 1, 2019, for Bioplast Jewelry, Inc.: Accounts Payable (control account) $ 6,600 Accounts Payable—Evans Enterprises 1,600 Accounts Payable—Stamos Distributors 3,100 Accounts Payable—Tonetta Company 1,900 GENERAL JOURNAL DATE DESCRIPTION POST. REF. DEBIT CREDIT 2019 Jan. 8 Accounts Payable/Stamos Distributors 300 Cash 300 Made partial payment on account, Check 1240 10 Accounts Payable/Evans Enterprises 200 Purchases Returns and Allowances 200 Received Credit Memorandum 123 as allowance for discolored merchandise Use the final balances of the vendor accounts to prepare a schedule of accounts payable for Bioplast Jewelry, Inc., as of January 31, 2019. Does the total of your accounts payable schedule agree with the balance of the accounts payable account in the general ledger at January 31, 2019?
Answer:
A. $6,100
B. Yes
Explanation:
A. Preparation of a schedule of accounts payable for Bioplast Jewelry, Inc., as of January 31, 2019 Using the final balances of the vendor accounts to
Accounts Payable—Evans Enterprises $1,400
( 1,600-$200)
Accounts Payable—Stamos Distributors $2,800
(3,100-$300)
Accounts Payable—Tonetta Company 1,900
Total $6,100
($1,400+$2,800+$1,900)
B. Yes based on the above Calculation, the total of The accounts payable schedule agree with the balance of the accounts payable account
reason been that each of the vendor account balance will the close Accounts Payable (control account).
Roberto Corporation was organized on January 1, 2021. The firm was authorized to issue 88,000 shares of $5 par common stock. During 2021, Roberto had the following transactions relating to shareholders' equity: Issued 10,100 shares of common stock at $6.90 per share. Issued 20,800 shares of common stock at $9.30 per share. Reported a net income of $109,000. Paid dividends of $41,000. Purchased 3,600 shares of treasury stock at $11.30 (part of the 20,800 shares issued at $9.30). What is total shareholders' equity at the end of 2021
Answer:
$290,450
Explanation:
The computation of the total shareholder equity for the year 2021 is shown below:
= Common stock issued + Net income - Dividends - Treasury stock purchased
= (10,100 shares × $6.90) + (20,800 shares × $9.30) + $109,000 - $41,000 - (3,600 shares × $11.30)
= $69,690 + $193,440 + $109,000 - $41,000 - $40,680
= $290,450
Hence, the total stockholder equity for the year 2021 is $290,450
Q2. Management is equally important to run a political organisation as it is to run an
economic organisation. Which feature of management is being reflected in the given
statement?
(a) Management is goal oriented
(b) Management is multidimensional
(c) Management is all pervasive
(d) Management is a group activity
03.
'Objectives of an enterprise play a vital role'. These should be
(a) Expressed in measurable terms (b) Written statements
(c) Issued by top management
(d) All the above
In a marketing firm, the Financial Manager pays more attention towards an increase in
the marketing cost as compared to a 15% increase in the courier expenses.
Identify the concept being used by the manager.
(a) Management by exception
(b) Critical point control
(c) Corrective action
(d) None of the above
Answer:
Q2. B
Because a management is basically Base of separation of powers where all organs get work to do
Q3. A
Q4. B
Fly-By-Night Couriers is analyzing the possible acquisition of Flash-in-the-Pan Restaurants. Neither firm has debt. The forecasts of Fly-By-Night show that the purchase would increase its annual aftertax cash flow by $390,000 indefinitely. The current market value of Flash-in-the-Pan is $8 million. The current market value of Fly-By-Night is $29 million. The appropriate discount rate for the incremental cash flows is 8 percent. Fly-By-Night is trying to decide whether it would offer 30 percent of its stock or $12 million in cash to Flash-in-the-Pan. a. What is the synergy from the merger
Answer:
the synergy of the merger is $4,875,000
Explanation:
The computation of the synergy of the merger is shown below;
= Annual cash flow ÷ discount rate
= $390,000 ÷ 8%
= $4,875,000
By dividing the annual cash flow from the discount rate we can get the synergy of the merger
Hence, the synergy of the merger is $4,875,000
Items purchased from a vendor cost $250 each, and the forecast for next year’s demand is 2,000 units. The optimal order size is 100. The firm operates 52 weeks next year and lead time is 3 weeks. It costs $5 every time an order is placed for more units, and the storage cost is $4 per unit per year. What is the total storage (holding) cost for a year?
Answer: 200
Explanation:
The total storage cost (holding cost) for the year will be calculated as:
= EOQ/2 × Inventory carrying cost
where,
EOQ = optimal order size = 100
We should note that the storage cost of $4 per unit is the inventory carrying cost.
We then put the values in the formula and this will be:
= EOQ/2 × Inventory carrying cost
= 100/2 × 4
= 200
Therefore, the total storage (holding) cost for a year is 200.
3.1 Define the following concepts:
e-Business
Nepotism
Cronyism
Embezzlement
Bribery
An e-Business refers to an internet-based marketplaces that facilitate buying and selling of goods between merchants and customers.
What is Nepotism?Nepotism refers to an act of granting of favour to one's relatives.
What is Cronyism?Cronyism refers to an act of showing favoritism to one's friends when appointing for new positions
What is Embezzlement?Embezzlement refers to a misappropriation of public funds by an employee, official etc
What is Bribery?Bribery refers to an act of offering something of value to another person in order to receive something in exchange
Read more about e-Business
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The following December 31, 2021, fiscal year-end account balance information is available for the Stonebridge Corporation:
Cash and cash equivalents
Accounts receivable (net) 5,700
Inventory l 27,000
Property, plant, and equipment (net) 67,000
Accounts pay able 46,000
Salaries payable 18,000
Paid-in capitapoints 135,000
The only asset not listed is short-term investments. The only liabilities not listed are $37000 notes payable due in two years and related accrued interest of $1,000 due in four months. The current ratio at year-end is 1.6:1
Required: Determine the following at December 31, 2021:
1. Total current assets
2. Short-term investments
3. Retained earnings
Answer:
1. Total current assets = $104,000
2. Short term investments = $4,300
3. Retained earnings = $27,000
Explanation:
Note: The data given in the question are not complete and merged together. The complete sorted data are now given as follows:
Details Amount ($)
Cash and cash equivalents 5,700
Accounts receivable (net) 27,000
Inventory 67,000
Property, plant, and equipment (net) 160,000
Accounts pay able 46,000
Salaries payable 18,000
Paid-in capital 135,000
The explanation of the answer is now given as follows:
1. Total current assets
Current liabilities = Accounts playable + Salaries payable + Accrued interest = $46,000 + $18,000 + $1,000 = $65,000
Current ratio = 1.6:1
Current ratio = Current assets / Current liabilities .............. (1)
Substituting the relevant values into equation (1) ans solve for Current assets, we have:
1.6 = Current assets / $65,000
Current assets = 1.6 * $65,000 = $104,000
Therefore, wee have:
Total current assets = $104,000
2. Short-term investments
Current assets = Cash and cash equivalents + Accounts receivables + Inventory + Short term investments ............... (2)
Substituting the relevant values into equation (2) ans solve for Short-term investments, we have:
$104,000 = $5,700 + $27,000 + $67,000 + Short term investments
$104,000 = $99,700 + Short term investments
Short term investments = $104,000 - $99,700 = $4,300
3. Retained earnings
Long term liabilities = Notes payable due in two years = $37,000
Fixed assets = Property, plant, and equipment (net) = $160,000
Current assets + Fixed assets = Current liabilities + Long term liabilities + Paid in capital + Retained earnings ................. (3)
Substituting the relevant values into equation (3) ans solve for Retained earnings, we have:
$104,000 + $160,000 = $65,000 + $37,000 + $135,000 + Retained earnings
$264,000 = $237,000 + Retained earnings
Retained earnings = $264,000 - $237,000 = $27,000
Find the standard deviation of this sample: 4, 7, 9, 12, 15
The standard deviation is a measure of spread which depicts how much a distribution deviates from the mean or average value of the distribution. The standard deviation of the sample is 4.28
The sample :
4, 7, 9, 12, 15Mean, μ = ΣX/ n ; n = sample size
Mean = (4 + 7 + 9 + 12 + 15) / 5
Mean = 47/5
Mean = 9.4
The standard deviation = √[Σ(X - μ)² / (n - 1)]
Standard deviation = √[(4-9.4)² + (7-9.4)² + (9-9.4)² + (12-9.4)² + (15-9.4)²] / (5 - 1)
Standard deviation = √(73.2 / 4) = √18.3
The standard deviation = 4.28
Therefore, the standard deviation of the sample is 4.28
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Which sentence in the passage uses the correct calculation of economic order quantity, or EOQ, for this example?
A firm manufacturing airtight containers has an annual demand of 3,000 units. The cost per order is $200. The firm incurs a carrying cost of $10 per unit. The inventory management department has a weekly meeting. During the discussion, (A) Joe puts forth that they should use an EOQ of 346 units. (B) According to Austin, the EOQ should be 400 units. Gracie states that the EOQ should be 250 units.
A.
B.
Answer: 346 units(a)
Explanation: you multiply2* 3,000 *200 then divide by 10 and then square root it
Wellington Corp. has outstanding accounts receivable totaling $6.5 million as of December 31 and sales on credit during the year of $24 million. There is also a credit balance of $12,000 in the allowance for doubtful accounts. If the company estimates that 6% of its outstanding receivables will be uncollectible, what will be the amount of bad debt expense recognized for the year
Answer:
$508,000
Explanation:
Calculation to determine what will be the amount of bad debt expense recognized for the year
Using this formula
Bad debt expense=(Outstanding accounts receivable*Uncollectible outstanding receivables percentage)-Credit balance)
Let plug in the formula
Bad debt expense=($6.5million*8%)-$12,000
Bad debt expense=$520,000-$12,000
Bad debt expense=$508,000
Therefore what will be the amount of bad debt expense recognized for the year is $508,000