Fisher meeting with Bill Gates, CEO - Microsoft, to form alliances to develop new photo software that helped customers manipulat

Answer:

Net Investment amounts to 4,000

Gross Investment is calculated to be 10,000

Depreciation can be determined as Market Value minus Book value

Depreciation = 26,000 - 20,000

Depreciation = 6,000

Net Investment is then calculated as Gross Investment minus Depreciation

Net Investment = 10,000 - 6,000

Net Investment equals 4,000

Note: Gross investment for 2017 includes the 3 new beds acquired during 2017 for a total cost of 10,000. The Net investment calculation starts by determining the depreciation, which is obtained by subtracting the book value from the market value.

Response:

1. Create all necessary journal entries concerning uncollectible accounts and bad debt expense.

1

Dr Bad debt expense_______ 3320

Cr Allowance for bad debt_________________ 3320

2

Dr Allowance for bad debt__ 430

Cr Account Receivable_____________________ 430

2. Provide the year-end balance sheet display for accounts receivable.

Accounts receivable__________47570

Net accounts receivable_______44250

Clarification:

Credit transactions 166000

Credit transactions 118000

Bad debt losses are 2%

Written off 430

Allowance 3320

1

Dr Bad debt expense_______ 3320

Cr Allowance for bad debt_________________ 3320

2

Dr Allowance for bad debt__ 430

Cr Account Receivable_____________________ 430

Year-end balance___________48000

Cr Account Receivable_________430

Accounts receivable__________47570

Allowance for bad debts_______3320

Net accounts receivable_______44250

Explanation:With hedge protection, the company must utilize the forward exchange rate applicable at the time of entering the forward contract when the payment date arrives. The question is incomplete. Below are the details that need to be included along with the picture of the spot rate and forward exchange rate.