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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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Meng Co. maintains a $300 petty cash fund. On January 31, the fund is replenished. The accumulated receipts on that date represe
Len [333]

Answer:

A. Dr. Office Supplies, $80; Dr. Merchandise inventory, $160; Dr. Miscellaneous expenses, $20; Dr. Cash over and short, $8; Cr. Petty cash, $268.

Explanation:

$80 for office supplies, $160 for merchandise inventory, and $20 for miscellaneous expenses are all expense accounts which need to be debited for settlement. Cash Shortage account is debited by $8 to record the cash shortage effect. The total of all these account will be credited in cash account.

7 0
2 years ago
You’ve decided the industry is mature. That means it has reached a point of market saturation. As a new player, you’ll need to t
OlgaM077 [116]

Answer:

intensity of rivalry

Explanation:

You answer this question based on Porter's Five forces model. This model is used to analyze how stiff competition is in a given industry. It includes, threat of new entrants, bargaining power of suppliers, bargaining power of buyers, intensity of rivalry and threat of substitute goods. In this case, the leaders must address the intensity of rivalry because the market is already saturated with those three big companies. Therefore,  your company must evaluate level of homogeneity of products that already exists, consumers' switching costs and brand loyalty to come up with a competitive strategy.

6 0
2 years ago
Kristian Thalen has just joined the corporate treasury group at Electrolux of Sweden, a multinational Swedish appliance maker. E
WITCHER [35]

Answer:

See explaination

Explanation:

cost of debt, after-tax = (4.3% + 1.2%)*(1 - 26%) = 4.07%

cost of equity = 4.3% + 1.3*4% = 9.5%

market capitalization = 286130000 * 182 = 52075660000

total value of equity outstanding = market capitalization = 52075660000

Debt portion = 11532000000 / (11532000000 + 52075660000) = 0.18

Equity portion = 1 - 0.18 = 0.82

weighted average cost of capital = 0.18*4.07% + 0.82*9.5% = 8.52%

7 0
2 years ago
Lima buys a new car from Motor City Inc. In the first month after the purchase, the car repeatedly fails to meet standards of qu
WINSTONCH [101]

Answer:

b. have reason to know of the cause of the failure.

7 0
2 years ago
Robots are especially effective in carrying out creative tasks and assignments.
Crank
The answer is b. False they are mostly tasked in numerical stuff
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2 years ago
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