Answer:
Assume that Bach Consulting uses the percent of sales method to estimate future uncollectible accounts.
What adjusting entry does Bach make to record May 2020 Bad Debt Expense?
Dr Bad debt expense 300,000 (= $30,000,000 x 1%)
Cr Allowance for doubtful accounts 300,000
What is "Accounts Receivable, net" on Bach’s May 31, 2018 Balance Sheet? $4,100,000 (= $4,400,000 - $300,000)
What is "Bad Debt Expense" on Bach’s May 2020 Income Statement? $300,000
Assume that Bach Consulting instead uses the analysis of receivables method to estimate future uncollectible accounts.
What adjusting entry does Bach make to record May 2020 Bad Debt Expense?
Dr Bad debt expense 280,000 (= $360,000 - $80,000)
Cr Allowance for doubtful accounts 280,000
What is "Accounts Receivable, net" on Bach’s May 31, 2018 Balance Sheet? $4,120,000
What is "Bad Debt Expense" on Bach’s May 2020 Income Statement? $280,000
Use PVH Corp.’s financial statement information to answer the following questions.
Provide the following account balances for PVH:
February 2, 2020 February 3, 2019
Accounts Receivable (gross) $762,000,000 $800,000,000
Allowance for Doubtful Accounts $21,000,000 $22,000,000
Accounts Receivable, net $741,000,000 $778,000,000
Which of the above numbers represents the amount of its February 2, 2020 Accounts Receivable balance that PVH expects to collect in the subsequent year(s)?
$741,000,000
Which of the above numbers represents that amount that PVH believes it will not collect from its customers as of February 2, 2020?
$21,000,000
Which of the above numbers represents the total amount PVH is owed by customers as of February 2, 2020?
$762,000,000
Provide the journal entry (both accounts and amounts) that PVH must have made to record its estimate of Bad Debt Expense in fiscal year 2019.
Dr Bad debt expense 22,000,000
Cr Allowance for doubtful accounts 22,000,000
Provide the journal entry (both accounts and amounts) that PVH must have made to record Accounts Receivable writeoffs in fiscal year 2019.
Dr Allowance for doubtful accounts 22,000,000
Cr Accounts receivable 22,000,000
Explanation:
Accounts receivable = $4,400,000
beginning balance Allowance for doubtful accounts = $80,000
May's net sales = $30,000,000
1% of net sales are uncollectible
aging of accounts receivable results in a $360,000 estimate for the Allowance for doubtful accounts as of May 31, 2020
Answer:
Only changes in the amounts being produced is the correct answer to this question.
Explanation:
Real GDP is the value of goods and services at base year prices so real GDP changes reflect changes in the amounts produced in the economy.
Effective gross domestic product ( GDP) is an inflation-adjusted indicator representing the cost of the goods and economic resources by a nation in a given year (demonstrated in foundation-year prices) and is often referred to as "current prices," "corrected deflation," or "constant currency" GDP.
Changes in real GDP reflect both changes in prices and changes in the amounts being produced.
Changes in real GDP reflect both changes in prices and changes in the amounts being produced. Real GDP is a measure of the total value of goods and services produced in an economy adjusted for inflation. As prices increase, the value of goods and services produced will also increase, resulting in a higher real GDP. Similarly, when more goods and services are produced, real GDP increases as well.
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Answer:
$55,800
Explanation:
The computation of the net realizable value of accounts receivable is shown below:
Net realizable value of account receivable = Account receivable - Allowance for Uncollectible Accounts
= $62,300 - $6,500
= $55,800
By deducting the allowance for uncollectible accounts from the account receivable so that the net realizable value of the account receivable
Answer:
Produce more widgets.
Explanation:
Given the price charge by the competitive firm is = $15
The unit produced = 100
The marginal cost of the last unit = $12
The firm should produce more widget because in the competitive market the firm charge the price that is equal to MC. Moreover, in the given question the price is greater than the marginal cost. Therefore, the firm should produce more widgets in order to reach the condition “P=MC”.
Explanation:
Communication: The most important to covey from low level to high level and vice-versa.
Leadership skill: The see the growth visibly. An essential skill for both employer and employee.
Crisis management: Employee should possess this skill to handle challenging situation
Negotiation: Which is really important both for work life and personal life. This is required in all the levels of hierarchy.
Collaboration: Required to work as a team
Problem-solving: The skill which would be tested in various interviews in all the levels.
Required:
a. Determine the proceeds of the note, assuming that the note carries an interest rate of 6%.
b. Determine the proceeds of the note, assuming that the note is discounted at 6%.
Answer:
A. $100,000
B.$99,000
Explanation:
A. Calculation for Determining the proceeds of the note, assuming that the note carries an interest rate of 6%
Based on the information given the note is not discounted which means the face value is equal to the proceeds of $100,000
Hence,
Face value = Proceeds of $100,000
Therefore the proceeds of the note, assuming that the note carries an interest rate of 6% will be $100,000
b. Calculation for Determining the proceeds of the note, assuming the note is discounted at 6%
First step is to find the discount
Using this formula
Discount = Face value amount x Discount rate x (term of note / 360)
Let plug in the formula
Discount= $100,000 x .06 x 60/360
Discount =$360,000/360
Discount= $1,000
Second step is to calculate for the Proceeds
Calculation for the Proceeds
Using this formula
Proceeds = face amount – discount
Let plug in the formula
Proceeds=$100,000 – $1,000
Proceeds= $99,000
Therefore the proceeds of the note, assuming that the note is discounted at 6% will be $99,000
Solving a question by financial calculator method. I am using (Texas Instruments BA II plus)
The answer is Current value = $550
First, since it is Semiannual coupon, then we adjust the interest rate to semi-annual rate and also that multiply by 15 years by 2 since we have 2 semi annual periods per year.
Also Note that: If using the same calculator as me, key in the numbers first before the function .
Then the Total duration of investment ;N is = 15 * 2 = 30
Then Interest rate; I/Y = 16% / 2 = 8%
After that the Face value; FV = 1000
Now the Semi annual Coupon Payment ; PMT = (8%/2)*1000 = 40
then CPT PV = $549.689
Thus, the current value of this bond is $550 (rounded to whole number.)
Find out more information about current value here:
Answer:
Current value = $550
Explanation:
You can solve this question using a financial calculator. I am using (Texas Instruments BA II plus)
First, since it is Semiannual coupon, adjust the interest rate to semi-annual rate and multiply 15 years by 2 since we have 2 semi annual periods per year.
Note: If using the same calculator as me, key in the numbers first before the function .
Total duration of investment ;N = 15 * 2 = 30
Interest rate; I/Y = 16% / 2 = 8%
Face value; FV = 1000
Semi annual Coupon Payment ; PMT = (8%/2)*1000 = 40
then CPT PV = $549.689
Therefore the current value of this bond is $550 (rounded to whole number.)