Answer:
$1,520
Explanation:
Given that,
Accounts Receivable balance = $63,400
Allowance for Doubtful Accounts balance = $1,300
Services provided on account during year 2 = $152,000
Cash collected from accounts receivables = $161,300
Estimated Uncollectible accounts = 1% of sales on account
Therefore, the amount of uncollectible accounts expense during the year 2 is the 1 percent of the amount of services provided on account to a customer.
Hence, the amount of uncollectible accounts expense recognized on the Year 2 income statement is calculated as follows:
= Services provided on account × Estimated Uncollectible accounts
= $152,000 × 1%
= $1,520
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Answer:
Residual income= $36,000
Explanation:
Residual income is the income that is generated in excess of the minimum required rate of return, which in this case is 10%. Any income above 10% return is considered as residual income. In this case the investment is 1,800,000 and 10% of that is 180,000 (0.1*1,800,000). So any income made above $180,000 will be residual income. In order to find the residual income we subtract the minimum income required from the actual income.
In this case the minimum income required is 180,000 and the actual operating income is 216,000 so residual income=
216,000-180,000= $36,000
Answer:
D. Annual basis
Explanation:
Banks and other financial institutions typically quote interest rates that they pay for deposits on an annual basis. This is to say, the quote the effective rate that is compounded annually, even if the interest is paid monthly, daily, quaterly, or semi-annually.