Jensen Company uses the percentage of credit sales method for calculating Bad Debt Expense. The company reported $216,000 in total sales during the year; $178,000 of which were on credit. Jensen has experienced bad debt losses of 6% of credit sales in prior periods. What is the estimated amount of Bad Debt Expense for the year
Answers
Answer:
$10,680
Explanation:
Bad debt expense can be seen as an account receivables which are uncollectible during a period of time because of the customers inability to fulfill his /her financial obligations which therefore result into bad debt.
(Bad Debt Expense = Net credit sales × Bad debt loss rate )
= $178,000 × 0.06 = $10,680
Therefore the estimated amount of Bad Debt Expense for the year is $10,680
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A company's most recent free cash flow to equity was $100 and is expected to grow at 4% thereafter. The company's cost of equity is 13%. Its WACC is 7.77%. What is its current intrinsic value
Sitwell Corporation manufactures titanium and aluminum tennis racquets. Sitwell’s total overhead costs consist of assembly costs and inspection costs. The following information is available: Cost Titanium Aluminum Total Cost Assembly 500 mach. hours 500 mach. hours $45,000 Inspections 350 150 $75,000 2,100 labor hours 1,900 labor hours Sitwell is considering switching from one overhead rate based on labor hours to activity-based costing. Using activity-based costing, how much "assembly cost is assigned to titanium racquets"?
Boney Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches. A batch of sugar beets costs $53 to buy from farmers and $18 to crush in the company's plant. Two intermediate products, beet fiber and beet juice, emerge from the crushing process. The beet fiber can be sold as is for $25 or processed further for $18 to make the end product industrial fiber that is sold for $39. The beet juice can be sold as is for $32 or processed further for $28 to make the end product refined sugar that is sold for $79.Which of the intermediate products should be processed further?Garrison 16e Rechecks 2017-09-13, 2017-11-11Multiple Choicebeet fiber should be processed into industrial fiber; beet juice should NOT be processed into refined sugarbeet fiber should be processed into industrial fiber; beet juice should be processed into refined sugarbeet fiber should NOT be processed into industrial fiber; beet juice should be processed into refined sugarbeet fiber should NOT be processed into industrial fiber; beet juice should NOT be processed into refined sugar
Consumption spending is:__________ A. spending by households, businesses, and government on all goods used up within one year. B. spending by individuals and households on both durable and nondurable goods. C. spending on goods and services by heads of households. D. spending by individuals and households on only nondurable goods, since they are used up quickly.
Answers
Answer:
LOL Music Store
Journal Entry to record the payment:
November 21:
Debit Accounts Payable $1,000
Credit Cash $980
Credit Cash Discounts $20
To record the payment on account.
Explanation:
a) Data and Analysis:
November 17: Inventory $1,000 Accounts Payable $1,000
November 21: Accounts Payable $1,000 Cash $980 Cash Discounts $20
b) When LOL Music Store uses the perpetual inventory system to account for its merchandise, it debits the Inventory account instead of the Purchases account on November 17. The credit entry goes to the Accounts Payable account. On November 21, when payment is made, the Accounts Payable is debited while the Cash account and Cash Discounts are correspondingly credited.
a. Determine the total interest cost under each plan.
b. Which plan is less costly?
i. Short-tem variable-rate plan
ii. Long-term fixed-rate plarn
Answers
Answer:
Long-term fixed-rate plan-$220,320.00
Short-term variable-rate plan-$224,280.00
The long-term fixed-rate plan is less costly as it has a lower interest expense
Explanation:
Total interest under the first plan=principal amount*interest rate*3 years
principal amount is $720,000
interest rate is 10.20%
total interest expense=$720,000*10.20%*3=$220,320.00
Interest expense under second plan=($720,000*8.50%)+($720,000*12.90%)+($720,000*9.75%)=$224,280.00
Answers
Answer:
$600 unfavorable
Explanation:
The budgeted cost of producing 14,000 units at $5.50 per unit and with fixed costs of $19,400 is:
The variance is given by subtracting the budgeted cost by the actual cost ($97,000):
Since the variance is negative, the variance is unfavorable
a. Plastics will pay Joe $32000 to pollute.
b. Joe will pay Plastics $32000 not to pollute.
c. Joe will enforce his property rights and not allow Plastics to pollute.
d. Plastics will use its property rights to continue polluting.
2. If Plastics, Inc. owns the rights to the river, which of the following is the most likely outcome?
a. Plastics will pay Joe $32000 to pollute.
b. Joe will pay Plastics $32000 not to pollute.
c. Joe will enforce his property rights and not allow Plastics to pollute.
d. Plastics will use its property rights to continue polluting.
Answers
If Joe owns the rights to the river will enforce his property rights and not allow Plastics to pollute and clean the pollution. Plastic is breaking his rights on the river
In this scenario Joe has benefit for 20,000
and Plastic losses for 12,000
2.- If Plastic own the rights to the river Joe will pay Plastics $15,000 to not pollute. This will make Plastic earn money for cleaning the river and Joe gain 5,000 incremental benefit
Explanation:
(A) Joe has legal claims, so It will used before any economic options
(B) Joe doesn't have legal claims, but It notices that a good offer make both parties win.
Plastic will receive 15,000 dollars to clean the river, which has cost of 12,000 realizing a net gain of 3,000
While Joe estimated a marginal benefit of 5,000 after paying to Plastic to clean the river, (20,000 benefit - 15,000 cost
First one is b
Second one is a
Answers
Answer:
Overhead volume balance= $29,400 unfavorable
Explanation:
Giving the following information:
From the following data, calculate the fixed overhead volume variance.
-Actual fixed overhead $40,000
-Budgeted fixed overhead $21,000
-Standard overhead allocation rate $6
-Standard direct labor hours per unit 4 DLHr
-Actual output 2,100.
Overhead volume variance= budgeted fixed overhead - fixed overhead applied= 21,000 - 50,400= 29,400 unfavorable
Answers
The net profit or loss from buying the call should be $3.17 and -$7.55.
Calculation of stock price per share:
here, a Stock price higher than the strike price option will be exercised.
Net profit = Stock price - Strike price - Option premium
= $110.72 - $100 - $7.55
Net profit = $3.17
Stock price is lower than the strike price option will fail.
Net profit = Stock price - Strike price - Option premium
= 0 - $7.55
Net profit(loss) = -$7.55
Learn more about net profit here: brainly.com/question/24364525