Beckham Broadcasting Company (BBC) has operating income (EBIT) of $2,500,000. The company's depreciation expense is $500,000 and

If a business regularly deals with toxic substances, all staff interacting with these hazardous materials must <span>receive training on how to handle and dispose of them safely! This is of utmost importance.</span>

Answer:

Which journal entry did Pincus make to account for uncollectible accounts in 2021?

During 2021, the company identified $10,800 as uncollectible accounts.

Dr Allowance for Uncollectible Accounts $ 10,800

Cr Accounts Receivable $ 10,800

And how is the bad debt expense recognized for 2021?

Pincus predicts that 5% of the accounts receivable as of 12/31/2021 will not be collected.

Dr Bad Debt Expense $ 1,520

Cr Allowance for Uncollectible Accounts $ 1,520

Explanation:

Pincus rendered services totaling $268,000 on credit.

Dr Accounts Receivable $ 268,000

Cr Sales $ 268,000

In 2021, $10,800 was identified as uncollectible accounts.

Dr Allowance for Uncollectible Accounts $ 10,800

Cr Accounts Receivable $ 10,800

Using the allowance method for bad debts, when an account is written off, the company records a debit to the Allowance for Uncollectible Accounts previously estimated, and a credit to accounts receivable to adjust the accounts receivable balance.

By year-end 2021, cash collected from accounts receivable amounted to $226,800.

Dr Cash $ 226,800

Cr Accounts Receivable $ 226,800

REMAINING BALANCE

Dr Accounts Receivable $ 30,400

Pincus assesses that 5% of the accounts receivable at 12/31/2021 will be uncollectible.

Dr Bad Debt Expense $ 1,520

Cr Allowance for Uncollectible Accounts $ 1,520

I perceive this method as unsustainable for two main reasons. Initially, from an agricultural standpoint, I believe it's imprudent to cultivate the same crop in a field for four consecutive years; crop rotation is preferable to prevent nutrient depletion from the soil. Secondly, from an economic viewpoint, it might be unwise as the farmer is putting everything at risk by assuming that wheat prices will remain high, whereas having a variety of crops could provide alternatives in case of a fall in wheat prices.

Answer:

The internal rate of return for this investment stands at 10%.

Explanation:

This rate represents the discount rate at which the present value of the continuous cash inflows matches the initial investment amount of $210.

We utilize the formula for deriving the present value of a growing perpetuity to ascertain the internal rate of return, referred to as X in the equation below:

10.5/ ( X - 5%) = 210 <=> X - 5% = 10.5 / 210 = 5% <=> X = 5% + 5% = 10%.

Thus, the internal rate of return for this investment is 10%.

a) X1=5.64 X2=4.57 X3 = 8.59 Optimal solution = 104.77 b) An additional hour on machine 3 = 105.42 – 104.77 = 0.64 c) An extra 15 hours on machine 2 = 105.37 - 104.77 = 0.6 Please refer to the details given in the problem. Reach out to me if you have questions; all exercises have been resolved on a single sheet with the necessary formulas. SOLVED WITH EXCEL SOLVER.