Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Accounts receivable changes with bad debts
A firm is evaluating an accounts receivable change that would increase bad debts from 2% to 4% of sales. Sales are currently 50,000 units, the selling price is $20 per unit, and the variable cost per unit is $15. As a result of the proposed change, sales are forecast to increase to 60,000 units.
a. What are bad debts in dollars currently and under the proposed change?
b. Calculate the cost of the marginal bad debts to the firm.
c. Ignoring the additional profit contribution from increased sales, if the proposed change saves $3,500 and causes no change in the average investment in accounts receivable, would you recommend it? Explain
garland mills purchased a certain piece of machinery 2 years ago for 500000. its present resale value is 380000.
the audiology department at randall clinic offer many services in the clinics patients. the three most common along
in a joint process wear art produces precut fabrics for three products dresses jackets and blouses. joint cost is
extractor company leased a machine on july 1 2013 under a 10-year lease. the economic life of the machine is estimated
on december 31 2014 kate holmes company has 7086800 of short-term debt in the form of notes payable to gotham state
Nelson Company purchased equipment on July 1 for $27,500 and decided to depreciate the equipment on the straight-line method over its useful life of five years. Assuming the equipment's salvage value is $3,500, the amount of monthly depreciation e..
jon seceda furnace corp. purchased machinery for 315000 on may 12007. it is estimated that it will have a useful life
sanchez manufacturing purchases 45000 of raw materials on account and it incurs 50000 of factory labor costs.supporting
Paid utilites using the folloing column headings, identify the accounts involved and indicate the net effect of each transaction of on the accounting equations.
based on the contribution income statement for the bivans company prepare a condensed contribution income statement.
jan. 1 beginning inventory 300 units 10.00 3000jan. 10 sales units sold at retail 165 units 18.00jan. 20 purchase 370
cross country transport companyorganizes its three divisions the southeast east and southregions as profit centers. the
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd