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DiKsa [7]
2 years ago
15

On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $69,000

and $2,500, respectively. During the year Kincaid reported $180,000 of credit sales. Kincaid wrote off $1,600 of receivables as uncollectible in Year 2. Cash collections of receivables amounted to $210,100. Kincaid estimates that it will be unable to collect one percent (1%) of credit sales. The amount of uncollectible accounts expense recognized in the Year 2 income statement will be:
Business
1 answer:
USPshnik [31]2 years ago
8 0

Answer:

bad  debt expense 18,000

Explanation:

bad debt 1% of credit sales:

180,000 x 1% = 18,000

When the adjustment is made base on sales, the current balance in the allowance for doubtful debts is irrelevant.

So no calculation is needed for those.

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A cereal company's cost, in thousands of dollars, is represented by the function C ( x ) = 2 x + 4500 and its revenue, in thousa
maxonik [38]

Answer:

31,500

Explanation:

Cost function, C (x) = 2 x + 4500

Revenue function, R (x) = 5 x

Profit = Total revenue - Total cost

         = R(x) - C(x)

         = 5 x - [2 x + 4500]

         = 3 x - 4,500

If company sells 12,000 boxes, then profit will be:

=  3 x - 4,500

= 3(12,000) - 4,500

= 36,000 - 4,500

= 31,500

Therefore, 31,500 is the profit earn by the company by selling 12,000 boxes of cereal.

5 0
2 years ago
One inherent risk to using lean philosophy is that companies are at higher risk of inventory shortage during volatile times such
olganol [36]

Answer:

True

Explanation:

As in the lean philosophy the production is based on specific customer demands, there are chances that when the order is received then the inventory required is not present and that the inventory is not held in hand.

Whereas in the traditional philosophy the production is based on the principle of budgets and sales forecast, accordingly the sales keeps on moving and the inventory is also held in hand prior to confirmation of order from customers.

Since there is no planning before the order is received from customers under lean, in emergency cases, or scarcity of resources, the inventory will fall short, and acquisition of inventory would not be easy.

6 0
2 years ago
Assume that a certain product has the demand function given by
ss7ja [257]
What is the question? sorry I can't help
3 0
2 years ago
Tina's Track Supply's market-to-book ratio is currently 4.5 times and PE ratio is 10.5 times. If Tina's Track Supply's common st
otez555 [7]

Answer:

$22.2222, $9.5238, respectively

Explanation:

The market-to-book ratio is given by a share's market value divided by its book value, if shares are selling for $100 on the market, the book value is:

B = \frac{\$100}{4.5}=\$22.2222

The price to earnings ratio (PE ratio) is determined as a share's price divided by the earnings per share. Earnings per share are:

E=\frac{\$100}{10.5}\\E=\$9.5238

The book value per share and earnings per share are $22.2222, $9.5238, respectively

5 0
2 years ago
Pam's Pet Palace is considering an investment in dog grooming equipment that would increase cash receipts by $12,000 annually. T
4vir4ik [10]

Answer:

The answer is: D) $32,835

Explanation:

The easiest way to calculate the present value of an investment is to use an excel spreadsheet and the present value function =NPV(discount rate, series of cash flow). The first nine cash flows equal 12,000 and the tenth cash flow equals 17,000.

After you calculate the present value in excel, you must subtract the investment amount to determine the net present value.

NPV = $82,837 - $50,000 = $32,837 (the answer varies by $2 probably because of rounding percentages)

3 0
2 years ago
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