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valkas
2 months ago
8

In 2017 Wilkinson Company had net credit sales of $2250000. On January 1, 2017, Allowance for Doubtful Accounts had a credit bal

ance of $36000. During 2017, $90000 of uncollectible accounts receivable were written off. Past experience indicates that the allowance should be 10% of the balance in receivables (percentage of receivables basis). If the accounts receivable balance at December 31 was $600000, what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2017
Business
1 answer:
Free_Kalibri [3.7K]2 months ago
4 0
$114,000 To begin with, Net credit sales amount to $2,250,000. The starting allowance for doubtful accounts stands at $36,000. During the year, $90,000 worth of uncollectible accounts were written off. First, we need to ascertain the adjustment needed for the allowance for doubtful accounts: Excess amount to adjust = Uncollectible accounts written off - Beginning allowance for doubtful accounts = $90,000 - $36,000 = $54,000 Allowance amount calculated as follows: 10% of the accounts receivable balance: 0.1 × $600,000 = $60,000 Thus, the necessary adjustment for the Allowance for Doubtful Accounts at December 31, 2017 totals to: Excess to adjust + Allowance amount = $54,000 + $60,000 = $114,000.
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Lake Corporation is considering the elimination of one of its segments. The segment incurs the following fixed costs. If the seg
stepan [3596]

Response:

The avoidable costs linked to the segment amount to $754,000

Detailed explanation:

The costs tied to the segment under consideration for elimination are as follows:

- Advertising costs = $140,000

- Salaries for supervisors = $300,000

- Allocation of costs at the company level = $130,000

- Loss incurred from unsold building (*): $60,000

- Maintenance costs on equipment = $112,000

- Real estate taxes on the building = $12,000

The cumulative cost amounts to $754,000

(*) The earnings from the sold building (book value) = Market value of the building $160,000 - Book value of the building $100,000 = $60,000

3 0
2 months ago
Net interest margin—often referred to as spread—is the difference between the rate banks pay on deposits and the rate they charg
Nady [3600]

Answer:

(a) P(X\:>\:5.40)=0.9938

(b) P(X\:

(c) X=4.975 percent

Explanation:

(a) Identify the z-value that represents 5.40 percent

.Z=\frac{X-\mu}{\sigma}

Z=\frac{5.40-4.15}{0.5}

Z=\frac{1.25}{0.5}=2.5

Thus, a net interest margin of 5.40 percent stands at 2.5 standard deviations above the average.

From the standard normal distribution table, the area to the left of 2.5 is 0.9938. Hence, the likelihood of a randomly selected U.S. bank achieving a net interest margin greater than 5.40 percent is 1-0.9938=0.0062

(b) The z-value corresponding to 4.40 percent is Z=\frac{4.40-4.15}{0.5}=0.5The net interest margin of 4.40 percent is situated at 0.5 standard deviation above the average.

According to the normal distribution table, the area to the left of 0.5 is 0.6915

Thus, the probability of a randomly chosen U.S. bank having a net interest margin below 4.40 percent equals 0.6915

(c) The z-value indicating 95% is 1.65

Substituting 1.65 into the equation enables us to find X.1.65=\frac{X-4.15}{0.5}

1.65\times 0.5=X-4.150.825=X-4.15

0.825+4.15=X

4.975=X

For a bank that wishes for its net interest margin to fall below that of 95 percent of all U.S. banks, it should aim for a net interest margin of 4.975 percent.

6 0
2 months ago
Instant messaging (IM) enables users to communicate in real time via the Internet.Complete the following sentence about instant
Nady [3600]

Answer: Instant messaging allows for immediate communication via the Internet.

Explanation:

Messages are received immediately upon dispatch.

B. Control, Convenience, Litigation, Speed

The user has authority over it, it is user-friendly, can serve as evidence in legal matters, however, it can be intrusive and potentially disrupt the recipient, plus the presence functionality can only be determined after it has been sent and received.

8 0
2 months ago
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