Difference between an account receivable and note receivable

Assignment Help Financial Management
Reference no: EM13767710

1: The Brown Company sells small office equipment and fixtures on credit.  Their ending balance in Accounts Receivable for 2012 was $120,000.  It was expected that $5,000 of this balance would later prove to be uncollectible, so Brown set up an Allowance for Doubtful Accounts for $5,000, and declared $5,000 as Bad Debts Expense for 2012.  In June of 2013, Brown determined that a $1,285 receivable owed by Molly Quinn should be written off.  Discuss the impact that this June write off action will have on Brown's Net Income for 2012 and 2013, and explain your answer.

2: What is the difference between an account receivable and a note receivable? Give an example of each.

Reference no: EM13767710

Questions Cloud

Ind the percentile for the average teacher''s salary : Salaries for teachers in a particular elementary school district are normally distributed with a mean of $44,000 and a standard deviation of $6,500. We randomly survey ten teachers from that district. a.  Find the 90th percentile for an individual te..
Find the optimal size of its milk storage tank : Fuller Ice Cream Company buys 73,000 gallons of milk annually. Due to state regulations, it cannot store the milk for more than 8 days. Find the optimal size of its milk storage tank. The price of milk is $3 per gallon, and the cost of capital for Fu..
What is the operating cash flow : Kurt's Kabinets is looking at a project that will require $80,000 in fixed assets and another $20,000 in net working capital. The project is expected to produce sales of $138,000 with associated costs of $74,000. The project has a 4-year life. The co..
Controversy or issue concerning global warming : energy usage contributes to the greenhouse effect .A change each team member can make to reduce emissions and save energy
Difference between an account receivable and note receivable : The Brown Company sells small office equipment and fixtures on credit.  Their ending balance in Accounts Receivable for 2012 was $120,000. What is the difference between an account receivable and a note receivable? Give an example of each.
Describes assumption of the risk in a negligence case : Which best describes assumption of the risk in a negligence case? In order to recover in a products liability case based on strict liability, the plaintiff must prove that the product had a defect that
Discharge diagnoses for proper sequencing : What chronic conditions were listed in Jane Dare's history prior to her discharge diagnosis?
Operating leverage due to the capital intensive nature : Abrams Steel Company has very high operating leverage due to the capital intensive nature of the steel business. Abrams' CEO is concerned about the variability in the firm's EPS if sales should drop, and decides to take action. Which of the following..
What is highest type of ownership estate in real property : What federal statute governs the legal use of electronic contracts? To create an enforceable contract, which of the following are needed? What is the highest type of ownership estate in real property

Reviews

Write a Review

Financial Management Questions & Answers

  Calculating the depreciable basis for real property

Which of the following is NOT included when calculating the depreciable basis for real property?

  What is the best estimate of value of sunshines operations

Sunshine Resorts, Inc. is a fast growing hotel chain whose free cash flow (FCF) in the year just ended was $225 (in millions of dollars). Analysts expect the company's FCF to grow by 40% this year, by 25% in Year 2, by 15% in Year 3, and at a constan..

  Explain the differences between gross and net currency risk

Explain the differences between gross and net currency risk exposures for a multinational corporation.

  Financial index and commodity index

What do you mean by Financial index and commodity index?

  Functioning of the financial reporting system

Objective of financial statements is to provide information about the financial position, performance and changes in financial position of an entity that is useful to a wide range of users in making economic decisions

  What is the firms net income

A firm has total assets of $280,000, a total asset turnover rate of 1.6, a debt-equity ratio .4, and a return on equity of 13.25 percent. What is the firm's net income?

  Compute the eps-roe-price and growth rate

We want to compute the EPS, ROE, price and growth rate of Bob & Co. It has 1 m shares outstanding and $75m of book value of equity. Bob & Co. expects to sell $20m worth of sales and keeps 10% of its profit. Its profit from operations is $7 million. F..

  Investment account that generates a nominal rate of return

Lee plans to retire in 22 years with a nest egg of $8M. He has already saved $500,000 in an investment account that generates a nominal rate of return of 12%, compounded quarterly. However, he needs to withdraw $150,000 from this account in 10 years ..

  Calculate the yield using a geometric average

One-year Treasury securities yield 3.5%. The market anticipates that 1 year from now, 1-year Treasury securities will yield 6.45%. If the pure expectations theory is correct, what is the yield today for 2-year Treasury securities? Calculate the yield..

  The operating leverage at this break-even point

Evaluate project that costs $1.5 million has a 10-year life and no salvage value. Assume depreciation is straight line over the life of the project. Sales are projected at 150K units every year over the life of the project. Price per unit is $75, var..

  Moving average forecasting models are powerful tools that

moving average forecasting models are powerful tools that help managers in making educated forecasting decisions. a

  What is your portfolio return

Portfolio Return At the beginning of the month, you owned $6,200 of Company G, $8,500 of Company S, and $2,000 of Company N. The monthly returns for Company G, Company S, and Company N were 7.75 percent, -1.55 percent, and -.18 percent. What is your ..

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd