Answer:
Explanation:
1. What is the erosion cost from the new bike?
= ($100 - $25) × 8500
= $75 × 8500
= $637500
2. Should Fat Tire start producing the off-road bike?
Net annual cash flow with the standard bike = ($100 - $25) × 40000 = $75 × 40000 = $3000000
Net annual cash flow with standard and off road bikes will be:
= [($100 - $25) × (40000 - 8500)] + [($375 - $275) × 16000]
= ($75 × 31500) + ($100 × 16000)
= $2362500 + $1600000
= $3962500
Increase in cash flow will now be:
= $3962500 - $3000000
= $962500
Therefore, Fat Tire Bicycle Company should not stop producing off road bike.
Which one of the following account groups normally has a credit balance? A. equity and assets B. assets and liabilities C. assets and expenses D. liabilities and revenues
Answer:
a) Assets and expenses
Explanation:
Credit balance can be regarded as amount that is been owed by a business to a customer. This occur when the payment by the customer to the business exceed the current invoice stipulates. credit balances can be located or found at right side of a subsidiary ledger account, it can be found on right side of a general ledger account. credit balance that is contained on billing statement of the customers can be regarded as amount that card issuer is owing the customer.
It should be noted that one if account groups that is normally has a credit balance is Assets and expenses
Great American Oilchange (GAO) sells a combined oil change service and parts package for $30. A customer who supplies the parts (oil and filter) is charged $20 for only the service, whereas a customer who buys only the oil and filter for do-it-yourself use) is charged $20 for the parts. The parts cost GAO $14
Required:
Determine the dollar amount of revenue from the oil change service versus the sale of parts for each combined oil change package.
Answer:
Oil change Service $15
Sales of Parts $15
Explanation:
Calculation to Determine the dollar amount of revenue from the oil change service versus the sale of parts for each combined oil change packages
First step
Oil change service= $20
Selling price of parts = $20
Total $40
Second step is to calculate the Percentage of each activity in total Revenue
Oil change service = $20
Oil change service=20/40*100
Oil change service=50%
Sale of parts= $20
Sale of parts=20/40*100
Sale of parts=50%
Third step is to calculate the Allocated Transaction Price for both parts and service
Combine oil change service and part package = $30
Oil change service= $30 * 20/40
Oil change service=$15
Sale of parts = $30 * 20/40
Sale of parts= $15
Therefore the dollar amount of revenue from the oil change service versus the sale of parts for each combined oil change packages will be:
Oil change Service $15
Sales of Parts $15
Managerial accounting systems report both monetary and nonmonetary information. Examples of nonmonetary information include: _________ a) employee diversity. b) percentage of on-time deliveries. c) employee satisfaction data. d) amount of sales per customer
Answer:
b) percentage of on-time deliveries.
Explanation:
Managerial accounting also known as cost accounting is an accounting technique focused on identification, measurement, analyzing, interpretation, and communication of financial information to managers for better decisions making and pursuit of the organization's goals.
Managerial accounting systems is an accounting system that is used by an organization to report both monetary and nonmonetary information. An example of a nonmonetary information is the percentage of on-time deliveries of the goods and services produced and supplied to consumers.
You are offered two jobs, one in Richmond, Virginia, paying $67,000, and one in San Diego, California, paying $79,000. The price index in Richmond is 104.5, and in San Diego it is 132.3. If real wages are the only consideration, then:
Answer:If real wages are the only consideration, then:The best decision is to go for the job in Richmond, Virginia since real wage is higher there
Explanation:
Given that
Richmond, Virginia is paying $67,000 as Nominal wage
price index in Richmond is 104.5
San Diego, California is paying $79,000 as Nominal Wage
price index in San Diego it is 132.3
Now To find the real wage is given as nominal wage rate/ CPI X 100
Real wage in Richmond, Virginia = $67,000/ 104.5 x 100 =$64,114.83 rounded to $64,115
Real wage in San Diego, California = $79,000/132.3 x 100=$59,712.77 rounded to $59,713
The best decision is to go for the job in Richmond, Virginia since real wage is higher there.
Roger is conducting an educational event and has asked a couple or providers
Answer:
Roger will require different equipment to conduct his educational event successfully.
Explanation:
Roger will require kiosks, banners, pamphlets and some ushers for his event. There should be reception or help desk placed at entrance to guide the attendees. There should be banners placed for different educational institutions who will be part of the event.
A firm's current profits are $1,300,000. These profits are expected to grow indefinitely at a constant annual rate of 3 percent. If the firm's opportunity cost of funds is 6 percent, determine the value of the firm:
a. The instant before it pays out current profits as dividends.
b. The instant after it pays out current profits as dividends
Answer:
a. Value of the firm = $45.93 million
b. Value of firm = $44.63 million
Explanation:
a. Below is the calculation for the value of firm.
Value of firm = Profit [( 1 + i) / (i - g)]
Profit = 1300000
i = 6%
g = 3%
Value of the firm = 1300000 [(1 + 0.06) / (0.06 - 0.03)]
Value of the firm = $45.93 million
B. Value of the firm after it pays profit as dividend.
Value of firm = Profit [( 1 + g) / (i - g)]
Value of firm = 1300000 [(1 + 0.03) / (0.06 -0.03]
Value of firm = $44.63 million
Number Style Which of the following sentences apply correct number style? Check all that apply.
a. We prefer that our interns have completed Finance 201 and an advanced professional communication course. He hopes to have at least $2 million in his retirement account by the time he turns 40. 57% of his take-home salary goes straight into his retirement account. Choose the best option to correct the following sentence.
b. She has scheduled the meeting for March eleventh two thousand 8 at eight in the morning. She has scheduled the meeting for March 11, 2008, at eight in the morning. She has scheduled the meeting for March eleventh, 2008 at eight in the morning. She has scheduled the meeting for March 11, 2008, at 8 a.m.
c. Which of the following sentences express correct number style? Check all that apply. John wasn't sure how to break the news without angering the majority of the company's 421 employees. The meeting was scheduled for three o?clock on Friday, February fifteenth. The average salary increase for Division 45 employees was 2.8 percent last year.
d. Which of the following choices has the correct number style to use at the beginning of a sentence? 3/4 of the respondents Three-fourths of the respondents.
Answer:
1. We prefer that our interns have completed Finance 201 and an advanced professional communication course.
• He hopes to have at least $2 million in his retirement account by the time he turns 40
b • She has scheduled the meeting for March 11, 2008, at 8 a.m.
c. The average salary increase for Division 45 employees was 2.8 percent last year.
d. Three-fourths of the respondents
Explanation:
It should be noted that the numbers from one to ten should be written in word form, while those from 11 and above can be written in figures.
The numbers such as percentages that starts a sentence needs to be written in words. Therefore, 57% should be written in words
Therefore, the correct options are:
• We prefer that our interns have completed Finance 201 and an advanced professional communication course.
• He hopes to have at least $2 million in his retirement account by the time he turns 40.
Other correct options to the question include:
b. She has scheduled the meeting for March 11, 2008, at 8 a.m.
For information that has to do with meetings, the numbers should be written in numerical form.
c. The average salary increase for Division 45 employees was 2.8 percent last year.
d. Three-fourths of the respondents
The number should be written in words since it begins the sentence.
The common share of Atlanta, corp., is selling for $42 a share and investors require a 15% return on the stock. If two thirds of the return on this stock are derived from dividends yield and the other one third is derived from capital gain yield. What is the amount of the current dividend D0
Answer:
$4.00
Explanation:
the required rate of return=dividend yield(2/3)+growth rate(1/3)
The dividend yield of the stock is defined as the expected dividend divided by the current share price
dividend yield=expected dividend(in 1 year)/share price
dividend yield=2/3*15%=10%
expected dividend=unknown
share price=$42
10%=expected dividend/$42
expected dividend=10%*$42=$4.20
expected dividend=D0*(1+g)
g=growth rate=1/3*15%=5%
$4.20=D0*(1+5%)
$4.20=D0*1.05
D0=$4.20/1.05
D0=$4.00
The CEO said, "Around every six months, my upper management team and I meet to review the goals that will be achieved over the next year, five years, and beyond. We then make sure we are clear on who will take responsibility to see that appropriate actions are undertaken to achieve our goals within the time frame we set." The CEO is describing the management function of
Answer: Planning
Explanation:
From the information given, the CEO is describing the management function of planning.
Planning refers to the organization of activities which are required to achieve a particular goal. Planning is concerned with the determination of the missions and the resources which will be used in achieving a goal and working towards it's achievement.
Based on the question, the management is creating a detailed action plan that is aimed at an organizational goal.
When you were born, your dear old Aunt Minnie promised to deposit $1,000 into a savings account, bearing a 5% effective annual rate, on each birthday, beginning with your first. You have just turned 22 and want the dough. However, it turns out that dear old (forgetful) aunt Minnie made no deposits on your fifth and eleventh birthdays. How much is in the account right now?
Answer: $34,502.85
Explanation:
The constant deposits are considered annuities.
The value at the end of 22 years is the future value of the annuity.
Future value of annuity = Annuity * ( (1 + rate)^number of years - 1 ) / rate
= 1,000 * ( ( 1 + 5%) ²² - 1) / 5%
= $38,505.21
Then subtract the future values of the deposits that your grandmother missed.
For the fifth birthday, the future value term will be 22 - 5 = 17 years
For the eleventh, the future value term will be 22 - 11 = 11 years
The amount in the account is:
= 38,505.21 - (1,000 * 1.05¹⁷) + (1,000 * 1.05¹¹)
= $34,502.85
Ramone, an HR Manager at TelVille Inc., was initially responsible only for recruitment. He was recently promoted and is now responsible exclusively for employee benefits. Which of the following statements best describes Ramone's role?
a. Ramone's previous role and his new role are HR generalist roles.
b. Ramone's previous role and his new role are HR specialist roles.
c. Ramone moved from the role of an HR specialist to that of an HR generalist.
d. Ramone moved from the role of an HR generalist to that of an HR specialist.
Answer:
Option b: Ramone's previous role and his new role are HR specialist roles.
Explanation:
Human Resources Management (HRM) and its function
This is simply refered to as the management of a wide range of responsibilities relating to people (employees) and how they act or function within a business.
Its role is the day to day management of people within the employer-employee relationship. It is referred to as the use of humand to achieve organisational strategic business objectives and also satisfying the individual employee needs.
The Role of HR manager 1
1. The ability to translate business strategy into action by being a member of the business team
2. Being able to develop and implement HR policies consistent with LSO's goals.
Specifically, the HR manager's role includes performance management, HR planning, training and development as well as translating business strategies into action in order to increase employees' and organisational efficiency and achieve business objectives
Activity-based costing is preferable in a system:
a. when multiple products have similar product volumes and costs
b. with a large direct labor cost as a percentage of the total product cost
c. with multiple, diverse products
d. where management needs to support an increase in sales price
Answer:
c. with multiple, diverse products
Explanation:
Activity based costing is a method that is used to share overhead and indirect costs among various products and services offered by a company.
So products that are produced in larger volume will receive more cost allocation.
The cost driver rate is used in this allocation and is calculated by dividing total pool cost by the cost driver.
So cost is allocated based on units of goods produced.
Examples of indirect cost shared are salaries and utilities.
Activity based costing is best for multiple diverse products. So that cost can effectively be allocated based on the amount of activity attributed to a particular product.
During 2021, Raines Umbrella Corporation had sales of $772,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $465,000, $104,500, and $150,000, respectively. In addition, the company had an interest expense of $74,400 and a tax rate of 25 percent. (Ignore any tax loss carryforward provisions and assume interest expense is fully deductible). Suppose Raines Umbrella Corp. paid out $102,000 in cash dividends. Is this possible? If spending on net fixed assets and net working capital was zero, and if no new stock was issued during the year, what is the net new long-term debt?
Answer:
Paying out $102,000 in cash dividends is possible
Net new long-term debt $26,100
Explanation:
Calculation to determine the net new long-term debt
Sales $772,000
Less Cost of goods sold $465,000
Gross profit $307,000
($772,000-$465,000)
Administrative and selling expenses $104,500
Depreciation expenses $150,000
Earning before interest tax $52,500
($307,000-$104,500-$150,000)
Interest expense $74,400
Profit or Loss before tax ($21,900)
($52,500-$74,400)
Less Tax 25% $0
Add Depreciation expense $150,000
Net Cash flow $128,100
(-$21,900+$150,000)
Dividend $102,000
Net new long-term debt $26,100
($128,100-$102,000)
Therefore Based on the above calculation Paying out $102,000 in CASH DIVIDENDS is possible even though the Net income is Negative, its operating cash flow is $128,100 positive which means that the company has enough cash balance to pay dividends of $102,000. The Net new long-term debt is $26,100
The latest video game comes out and costs $60. You put it on your credit card and can’t afford to pay the whole bill all at once, so you make the minimum payment each month. How much is that minimum payment?
The minimum payment each month is 15%. The minimum payment is the least amount of money you must pay each month to maintain the status of your account.
What is minimum payment?The total balance on your account for that billing cycle is represented by the statement balance. The sum of your most recent bill plus any recent charges constitutes your current balance.
Although experts advise paying the statement balance in full each month, there are occasions when it might not be possible. In those circumstances, it's crucial to pay at least the required minimum in order to keep your account current and avoid late penalties and penalty APRs.
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Assume you are manager of the Outback Steakhouse, a franchised restaurant that has opened at new location in St. Louis. Describe which segmentation base(s) and possible segmentation variable(s) you would use to segment its market and explain why each supports the appropriate market segmentation strategy.
Answer:
Market segmentation consists of a strategy to better identify consumers based on common characteristics, that is, divide the market into clusters, so that there is a better targeting of the company's marketing strategies.
In the case of opening an Outback Steakhouse franchise in St. Louis, the bases of segmentation and possible appropriate segmentation variables could be geographical, to better understand the region of the city and surroundings, demographic to understand the characteristics of consumers and form the target audience and behavioral to understand the habits, tastes and preferences of your potential audience, and thus gather important information from that region and align the company's strategy to meet the specific desires and needs of consumers.
what job should i choose to be so rich
Answer:
The top career choices for making the most money are being an investment banker or physician. Engineer and pharmacist are good options as well.
Answer:
rather than focus on wealth, you should focus on the jobs that you would enjoy doing. Money mean nothing if you don't have time to use them.
When Frank demonstrates his actual pizza tossing technique during the webisodes, he is attempting to connect with customers through which part of the 4E framework for digital marketing?
Answer: experience
Explanation:
Frank is attempting to connect with customers through the 4E framework for digital marketing known as experience.
The 4E Framework describes different training methods and the outcome that are expected outcomes for each of the training.
The strategies involved are exposure, expertise, experience, and embedding. Experience strategies enhances the readiness of the user to use a new information or an innovation. The goal of the experience strategy is the increased knowledge and positive attitudes.
Since demonstrates his actual pizza tossing technique during the webisodes, in this case he has the experience.
Clannad currently produces and sells 4,000 units per year, and has a capacity of 5,000 units. Enya, Inc. has offered a one-year contract to supply parts at a cost of $30.00/unit. If Clannad accepts, it will reduce fixed costs by 50% and will be able to rent unused space to another company for $18,000 per year. What is the impact on Clannad's profits if it accepts the offer.
Answer: Increase of $20,000
Explanation:
The cost of making a unit is:
= Direct material + Direct labor + Variable overhead + Fixed overhead
= 10 + 14 + 5 + 3
= $32
For 4,000 units that would be:
= 4,000 * 32
= $128,000
Cost of buying 4,000 units :
= Cost of buying + Fixed cost
= (4,000 * 30) + (3 / 2 * 4,000)
= $126,000
This cost is further reduced by the renting of the unused space:
= 126,000 - 18,000
= $108,000
Impact on profit:
= Cost of making - Cost of buying
= 128,000 - 108,000
= $20,000
Increase of $20,000
Question: MRP II did not replace or improve MRP. Rather, it expanded the scope of materials planning to include
capacity requirements planning, and to involve other functional areas of the organization.” Compare and
contrast MRP and MRP II.
Answer:
MRP and MRP II
MRP (materials requirement planning) and MRP II (materials requirement planning II) are information management systems for scheduling and billing materials required in production.
MRP is the first generation information system for materials planning, while MRP is a more advanced software that has added functional features.
MRP manages inventory, reduces cost, and optimizes production activities with increased efficiency. These benefits are also obtained with MRP II. In addition, MRP II offers Master Production Scheduling (MPS) that eliminates production bottlenecks. MRP II also features Purchasing Management to ensure steady flow of materials. Finally, MRP II incorporates capacity planning in order to meet customer demand.
Therefore, MRP II can be said to be more strategic and shows advanced features than MRP.
Explanation:
MRP and MRP II have both eased the tasks of production managers, enabling them to efficiently manage production materials. They have also made it easier for production managers to organize materials before the actual production takes place. However, the two materials requirement planning softwares can be integrated with Advanced Planning and Scheduling Software to increase production efficiencies.
Nungesser Corporation has an EPS of $1.96, a cash flow per share of $3.15, and a price/cash flow ratio of 7.76×. What is its P/E ratio?
Answer:
12.47
Explanation:
Given :
Earning per share, EPS = $1.96
Cashflow per share = $3.15
Price / Cash flow ratio = 7.76
The P/E ratio = share price / Earning per share
The Share price is given by :
Cashflow per share * price to cash flow ratio
Share price = $3.15 * 7.76 = $24.444
Now ;
P/E ratio = Share price / Earning per share = $24.444 / $1.96
P/E ratio = 12.4714
P/E ratio = 12.47
The Pension Trust Fund maintained by the city of Linden had the following transactions during 2019. Record each transaction in the Pension Trust Fund. Ignore any other funds that may be involved in a transaction.
a. Contributions of $600,000 were received from General Fund employees, and the General Fund contributed its share of $100,000.
b. The fund paid $500 for investment management fees.
c. Investments held by the fund increased in value by $3,500.
d. Depreciation on fund capital assets totaled $800.
e. Retirement benefits of $7,700 were paid to retirees.
f. Interest of $2,500 and dividends of $1,400 were received from investments
Answer:
Date Account Title Debit Credit
XX - 2019 Cash $700,000
Additional pension Contribution - $600,000
Employees
Additional pension Contribution - $600,000
Employer
Date Account Title Debit Credit
XX - 2019 Investment management fees $500
Cash $500
Date Account Title Debit Credit
XX - 2019 Investments $3,500
Net appreciation in investment fair value $3,500
Date Account Title Debit Credit
XX - 2019 Depreciation of fund capital assets $800
Accumulated depreciation of fund $800
capital assets
Date Account Title Debit Credit
XX - 2019 Retirement benefits $7,700
Cash $7,700
Date Account Title Debit Credit
XX - 2019 Cash $3,900
Interest on investments $2,500
Dividends $1,400
In long-run equilibrium, all firms in the industry earn zero economic profit. Why is this true? All firms in perfectly competitive industries earn zero economic profit in the long run because A. barriers to entry and exit prevent firms from earning positive or negative economic profit. B. a positive profit would induce firms to produce more , increasing price and profit, and a negative profit would induce firms to produce less , decreasing price and profit. C. firms are price takers, maximizing profit by producing where price equals average cost . D. a positive profit would induce firms to enter, decreasing price and profit, and a negative profit would induce firms to exit, increasing price and profit. E. firms are price takers, maximizing profit by producing where price equals marginal cost.
Answer: D. a positive profit would induce firms to enter, decreasing price and profit, and a negative profit would induce firms to exit, increasing price and profit.
Explanation:
In the long run in a competitive market, companies will enter if they find that the market is making positive economic profits. This will increase the number of supplies in the market which would then lead a to a reduction in price and by extension a reduction in profit.
If the profit that firms begin to make after these new companies come into the market, falls below 0, then firms will leave the market so as not to make losses. This would reduce supply and lead to prices rising which would pull profits up as well till they are positive again then the first instance would repeat itself.
This goes on repeatedly and therefor keeps long run economic profit at 0.
Burt is strategizing and planning an IMC marketing campaign for the company where he is employed as marketing specialist. If he is to execute an effective IMC campaign, which aspects should he consider
Answer:
Incorporate the manufacturing process steps of the service into your planning and design process. A further explanation is provided below.
Explanation:
Burt would have had to take into account the possible throughout the development process of the marketing campaign when trying to execute an integrated Communication IMC program.An essential component of conducting a successful IMC campaign requires determining the phase including its project lifecycle.Thus the above is the right answer.
I collect baseball cards. I do not sell any cards and I let my collection grow. The number of cards in my collection grows at 5% per year. How long will it take for my collection of cards to double in quantity?
Answer: 14.4 years
Explanation:
You can use the Rule of 72 to find out.
The Rule of 72 is a very useful formula that shows the amount of time it would take an amount to double given a certain growth rate.
The formula is:
= 72 / Growth rate in whole numbers
= 72 / 5
= 14.4 years
Approximately 14.4 years
Janet and Megan are debating the use of student discounts by local stores near school. Janet argues, "When stores offer discounts to students with valid identification, it is price discrimination, because they are attempting to separate the market into two groups—each with different demands for that particular good." Megan responds with, "This is not a form of price discrimination, because there is no age restriction for students. Economists generally agree with :
a. Dina
b. Antonio
Answer:
Antonio
Explanation:
In simple words, Antonio has a lot of support among economists. Price discrimination occurs when a vendor is able to split clients into groupings or segregate a marketplace into two categories so that they may charge varying charges to that same two groups. It has hardly anything to deal with the customers' age.
Thus, Antonio is correct with his views.
Maham Corporation's budget calls for the following production:
Quarter 1 = 22,500 units
Quarter 2 = 19,000 units
Quarter 3 = 17,000 units
Quarter 4 = 24,000 units
Each unit of product requires three pounds of direct material. The company's policy is to begin each quarter with 30% of that quarter's direct materials requirements. What would be the budgeted direct materials purchases in the second quarter?
Answer: 55,200 pounds
Explanation:
The required direct material for the second quarter is:
= 19,000 * 3
= 57,000 pounds
The Beginning inventory for the second quarter is 30% of what is required:
= 30% * 57,000
= 17,100
The ending inventory is 30% of the next quarter's requirement:
= 30% * (17,000 * 3)
= 15,300
Purchases for the second quarter = Direct materials required for production in Quarter 2 + Desired ending inventory for Quarter 2 - Beginning inventory for Quarter 2
= 57,000 + 15,300 - 17,100
= 55,200 pounds
Sal is very clear in defining for his subordinates the incentives available to them for different levels of performance. He makes sure they understand the path toward receiving incentives and follows through on rewarding them when they meet those goals. Sal exhibits the _______ theory of leadership.
Answer: d. path–goal
Explanation:
The Path-goal theory of leadership espouses that leaders should be dynamic and use whichever leadership style would be best suited to the abilities of their subordinates and the work environment that they are in.
It is then divided into four styles with the relevant style here being the "directive path-goal clarifying leader behavior". Under this style, the manager specifies exactly what it is that they want from the employees and then rewards them when they meet the required objectives.
The theory of leadership that Sal was exhibiting when he was defining some incentive that can make them perform well and explain the path to follow so as to receive the incentive when they achieve their goal is The path-goal theory.
The path-goal theory can be regarded as one that focus on leader's behavior which serves as contingent to the satisfaction that influence the motivation and performance of their employees. Good example us where Sal promise her employee about incentive once they achieve their goals.Therefore, The path-goal theory is correct.
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10 percent decrease in consumer incomes leads to a 20 percent decrease in the quantity demanded of good D. Instructions: Round your answer to one decimal place. If you are entering a negative number be sure to include a negative sign (-) in front of that number. The income elasticity of this good is: . This good can best be described as (Click to select) .
Answer:
Income elasticity = 2
Normal good
Explanation:
Below is the given values:
Percentage decrease in consumers income = 10%
Percentage decrease in quantity demanded = 20%
Use the below formula to find the income elasticity:
Income elasticity = % change in quantity demanded / % in income
Income elasticity = -20/-10
Income elasticity = 2
Since the elasticity is 2 that means good is normal good.
XYZ Corporation manufactures two models of office chairs, a standard and a deluxe model. The overhead costs for setups and components pools are $60,000 and $58,900, respectively. The following activity has been compiled:
Number of Number of Number of
Setups Components Direct Labor Hours
Standard 11 6 295
Deluxe 29 13 205
Overhead costs $63,600 $102.600
Number of setups and number of components are identified as activity-cost drivers for overhead. Assuming an activity based costing system is used, what is the total amount of overhead costs assigned to the standard model?
A. $109,200
B. $57,000
C. $83,000
D. $83,100
Answer:
$49,890
Explanation:
The computation of the total amount of overhead costs assigned to the standard model is given below
The cost driver rate is
For setup
= $63,600 ÷ (11 + 29)
= 1,590
For component
= $102,600 ÷ (6 + 13)
= 5,400
Now the total amount of overhead for the standard model is
= 11 × 1,590 + 6 × 5,400
= $17,490 + $32,400
= $49,890
This is the answer but the same is not provided in the given options
If Modern Company received $3,650 from Connor Young Company on March 12 for the total amount of an account which had been written off on March 1, the entry to reinstate the account under the allowance method would include
Answer:
Please post the full question together next time.
If Modern Company received $3,650 from Connor Young Company on March 12 for the total amount of an account that had been written off on March 1, the entry to reinstate the account under the direct write-off method would include:______.
a. a debit to Allowance for Doubtful Accounts of $3,650.
b. is the same as it would be under the allowance method.
c. includes a credit to Bad Debt Expense of $3,650.
d. includes a credit to Cash of $3,650.
Explanation:
Under the direct write-off method ,
the journal entry is Bad debt expense A/c Dr XXXXX
To Account receivable A/c XXXXX
(Being the bad debt expense is recorded)
For recording this journal entry, we Debited the bad debt expense and credited the account receivable
This is the answer. Hence, all the given options are incorrect
