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d1i1m1o1n [39]
2 years ago
11

Assume you have a home that would cost $265,000 to replace. You currently have the home insured for $235,000. Last night there w

as a tornado which damaged your home, causing an estimated $35,000 worth of damages. How much will your insurance company pay for repairing the damage to your home?
a. $35,000
b. $43,710
c. $32,550
d. $34,500
Business
1 answer:
Katen [24]2 years ago
4 0
I believed the answer is b
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Johnson Company calculates its allowance for uncollectible accounts as 10% of its ending balance in gross accounts receivable. T
Margaret [11]

Answer:

<em>Incomplete question is "2. What journal entry should Johnson record to recognize bad debt expense for 2021? 3. Assume Johnson made no other adjustment of the allowance for uncollectible accounts during 2021. Determine the amount of accounts receivable written off during 2021 4. If Johnson instead used the direct write-off method, what would bad debt expense be for 2021?"</em>

1. Gross accounts Receivable = Allowance Account balance at beginning / 10%

= $30,000 / 10%

= $300,000

2.     Year   Account Title                              Debit     Credit

       2021  Bad debt expense                   $105,000

                  ($500,000*10% + $55,000)  

                         To Allowance for Doubtful Accounts   $105,000

3.  Accounts receivable written off = Beginning balance of Allowance Account - Ending Balance of Allowance account

= $30,000 - (- $50,000)

= $30,000 + $50,000

= $80,000

4. Bad debt expense for 2021 (direct write off method) = Amount written off = $80,000

4 0
2 years ago
It is election day and 1800 voters vote in their precinct’s library during the 10 hours the polls are open. On average, there ar
lorasvet [3.4K]

Answer:

Inventory = 15 voters

Flow rate = 3 voters per minute

Flow Time = 5 minutes

Explanation:

Flow rate is defined as the flow of units for each minute, or the minutes or each unit.

Here, number of voters is the units = 1,800 voters

Also provided number of hours = 10

Thus, flow rate shall be:  1,800/10 = 180 voters each hour

Now \frac{180}{60\ minutes} = 3 voters per minute.

Flow time is the average time by each unit, that is time taken for each unit.

Flow time = 5 minutes

Now, that we know what flow rate and flow time is:

Inventory of voters = Flow rate \times Flow time = 3 voters \times 5 minutes = 15 voters.

5 0
2 years ago
A bank with a two-year horizon has issued a one-year certificate of deposit for $50 million at an interest rate of 2 percent. Wi
IRINA_888 [86]

Explanation:

The bank runs the danger that just before the second year, the short-term interest rate will increase, increasing its Lending value, but leaving untouched the interest income the bank gets from either the Treasury bill.  

Annual interest revenue of 0.04* $50 million= 2 million and annual interest costs for the bank (0.02)* $50 million= 1 million, between 2 per cent to 4 per cent for the Treasury note.

The bank makes a profit of $2 million – $1 million = $1 million. If the interest rate rises 1 percent, the bank’s profit falls to

((0.04)* $50 million) – ((0.03) * $50 million) = $500,000.  

7 0
2 years ago
Assume that a six-firm cartel supplies 500 million units of Whatailsya energy drink at a price of $5.00 per unit. Each firm supp
bazaltina [42]

Answer:

<u>The net gain for the firm cheating the cartel is US$ 183 million (rounding the answer to the nearest million).</u>

Explanation:

1. Let's review all the information provided for solving this case:

Number of firms that supply  Whatailsya energy drink = 6

Amount of production of the cartel of six firms = 500 million units

Price of the energy drink = US$ 5

Amount of production of the firm that decided to break the cartel = 50 million extra units

Price after the extra production is sold = US$ 4.50

2. Let's find the individual production of each firm before and after the 50 million extra units and the net gains for the cheating firm.

Individual production of each firm of the cartel = Amount of production of the cartel/Number of firms

Individual production of each firm of the cartel = 500 million units/6

Individual production of each firm of the cartel = 83.33 million units

Individual sales of each firm before the 50 million extra units = Individual production * Price of the energy drink

Individual sales of each firm before the 50 million extra units = 83.333 million * 5

Individual sales revenue of each firm before the 50 million extra units = US$ 416.666 million

New production amount of the firm cheating the cartel = 83.333 + 50

New production amount of the firm cheating the cartel = 133.333 million units

Price of the energy drink after the extra production is sold = US$ 4.50

New sales revenue of the firm cheating the cartel = New production amount * Price of the energy drink after the extra production is sold

New sales revenue of the firm cheating the cartel = 133.333 million * 4.50

New sales revenue of the firm cheating the cartel = US$ 600 million

Net gain of the firm cheating the cartel = New sales revenue of the firm cheating the cartel - Individual sales of each firm before the 50 million extra units

Net gain of the firm cheating the cartel = 600 million - 416.666 million

Net gain of the firm cheating the cartel = 183.333 million

<u>Net gain of the firm cheating the cartel = US$ 183 million (rounding the answer to the nearest million)</u>

6 0
2 years ago
Which of the following describes an externality and which does​ not? Explain the difference. a. A policy of restricted coffee ex
luda_lava [24]

Answer: The correct answer is "A. Choice​ (b) describes an externality. The advertising blimp imposes a cost on the motorist that is not accounted for in the market price of advertising. The restriction on coffee exports has market​ effects, which are not externalities. ".

Explanation: Choice​ (b) describes an externality. The advertising blimp imposes a cost on the motorist that is not accounted for in the market price of advertising. The restriction on coffee exports has market​ effects, which are not externalities.

An externality is a situation in which the costs or benefits of producing or consuming a good or service are not reflected in its market price despite having an external impact.

In case A, the situation is reflected in the market price, while in case B, the external situation, despite having an impact, does not affect the market price.

8 0
2 years ago
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