Samuel must do B. Determine the organization's risk appetite.
The insurance policy is a contract between the insurance company and also the customer, that determines the claims that the insurance company is lawfully needed to pay. In exchange for associate initial payment, called the premium, the insurance {underwriter|underwriter|nondepository financial institution} guarantees to obtain loss caused by perils coated under the policy language.
In insurance, premium equates to the money that's paid by any individual or company/business for availing of associate contract. The premium quantity is influenced by multiple factors and varies from one receiver to a different.
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composed of intelligence experts from dia, cia, nsa, nga, and other intelligence agencies, affords the joint task force access to national-level databases and to agency-unique information and analysis
The NSC used to be installed in 1947 to integrate U.S. foreign and protection policy.
By law, the Council is the United States government's most exalted official committee, composed of simply 4 members: the president, vice president, secretary of state, and secretary of defense.
What did the National Security Act of 1947 created?An Act To promote the country wide protection by using providing for a Secretary of Defense; for a National Military Establishment; for a Department of the Army, a Department of the Navy, and a Department of the Air Force; and for the coordination of the things to do of the National Military Establishment with other departments
Truman in July 1947, which reorganized the shape of the U.S. armed forces following World War II.
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https://brainly.com/question/2038966#SPJ4the two images represent different agricultural land survey patterns. comparing the two images, which survey system was more efficient in terms of trade?
Better access to waterways for moving goods to markets was provided by the river in the long lot survey method. The two pictures show various agricultural land surveying techniques. contrasting the two pictures
Utilize artificial intelligence to foresee and modify the water usage on the farm. Explanation: Artificial intelligence (AI) is used in precision agriculture to help identify pests, illnesses, and poor plant nutrition on farms.
Which survey system was more effective in terms of commerce when compared to the two images? In the long lot survey method, the river offered easier access to waterways for delivering commodities to markets.
Farmers can conserve plants, wildlife, and water resources by incorporating trees and shrubs into their operations. They may also be able to generate additional income from fruit or nut crops.
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How do I return a non-returnable item to Amazon?
Amazon is a enormous online store that offers a wide range of products, including books, music, movies, housewares, electronics, toys, and many more, either directly to its millions of consumers or by acting as a middleman between them and other sellers.
On the product description page, items designated as "non-returnable" generally cannot be returned. However, Amazon will offer a complete refund or replacement, as appropriate, in the unusual case if the item send is damaged, faulty, or the wrong one.
In order to return the item, we should first talk to the executive and let them know our problem.
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trinkle company made several purchases of long-term assets during the year. the details of each purchase are presented here. new office equipment list price: $41,800; terms: 2/10, n/30; paid within the discount period. transportation-in: $770. installation: $470. cost to repair damage during unloading: $420. routine maintenance cost after eight months: $140. basket purchase of copier, computer, and scanner for $47,100 with fair market values copier, $23,288. computer, $8,520. scanner, $24,992. land for new warehouse with an old building torn down purchase price, $77,600. demolition of building, $5,000. lumber sold from old building, $2,190. grading in preparation for new building, $6,100. construction of new building, $201,000.
The answers after calculations are New Office Equipment $42,863, Basket Purchase Of Copier, Computer, Scanner $61,500 and Land For New Warehouse $310,050.
What does the term "warehousing" mean?Storing products for subsequent sale or distribution is the practice of warehousing. A small, home-based firm may store its products in a spare room, basement, or garage, but larger companies usually own or rent space in a structure that is made for storage.
What does a warehouse serve as?The primary purpose of a warehouse is to keep items or products before transporting them to another place. However, a warehouse's area may be improved by a few ancillary uses of warehousing.
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which of the following are certain highly liquid financial assets that do not function directly or fully as a medium of exchange but can be readily converted into currency?
Near money is certain highly liquid financial assets that do not function directly or fully as a medium of exchange, but are readily convertible into currency.
What is near money?Near money is a financial industry term for highly liquid assets that can be easily converted into cash. Near money is sometimes referred to as quasi-currency or cash equivalents. Near money proximity is important in determining the level of liquidity.
Cash on hand is the most liquid asset, followed by funds that can be withdrawn from bank accounts.
What are near money assets?Examples of near-money assets include savings accounts, certificates of deposit (CDs), foreign currencies, money market accounts, marketable securities, and treasury bills (T-bills). In general, the cash assets included in a cash analysis depend on the type of analysis.
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a newspaper reports that the average expenditure on valentine's day is $100.89. do male and female consumers differ in the amounts they spend? the average expenditure in a sample survey of 40 male consumers was $134.67, and the average expenditure in a sample survey of 30 female consumers was $61.64. based on past surveys, the standard deviation for male consumer's is assumed to be $45, and the standard deviation for female consumer's is assumed to be $20.
Based on the data given, it appears that male and female consumers do differ in the amounts they spend on Valentine's Day. The average expenditure for male consumers was $134.67, which is significantly higher than the average expenditure for female consumers, which was $61.64.
Additionally, the standard deviation for male consumers is significantly higher than that of female consumers, suggesting that there is a larger variability in the amount of money spent by male consumers on Valentine's Day compared to female consumers.
This could be due to a variety of factors, such as differences in gender-based expectations around gift-giving and spending on special occasions like Valentine's Day, or differences in income or financial resources between male and female consumers. Ultimately, more data and research is needed to determine the exact cause of the discrepancy in spending between male and female consumers on Valentine's Day.
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pure competition is when the market consists of a ___________ producers and consumers such as in agriculture.
Answer: Large-scale.
Explanation:
Pure competition consists of many sellers and buyers, and the market operates according to demand and supply. Pricing of the products also mostly depends on market force and little control of the organizations. Here everything works based on the similarity of the products that buyers buy to the profits those sellers earn. Products and prices are similar. Sellers and buyers have different knowledge amounts in a pure competition system. Buyers have complete knowledge of product details, such as price and quality, while sellers have incomplete knowledge of what prices buyers may accept. Agri products come under necessities in the market so the demand and supply of these products are always active. So, pure competition is when the market consists of a large-scale producers and consumers such as in agriculture.
a u.s. business buys new computers for its office workers from a u.s. computer manufacturer. the value of transaction would be included in which category in the graph?
Answer: investment sector
Explanation: self-explanatory
this is the credit given to each person that can be applied to the amount of federal estate tax owed by that person at death.
From the question we can called the statement as applicable exclusion amount (AEA).
What is applicable exclusion amount (AEA)?The relevant exclusion amount, formerly known as the unified credit, shields a portion of your estate from federal estate tax and shields a portion of contributions you make during your lifetime from federal gift tax. The amount that one person may give as a gift to another without paying gift tax or impacting the unified credit is known as the Annual Exclusion Amount. Cash or other assets may be used to transfer this annual gift exception.
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Sales tax regulators ask retail (and other) companies for ______ to evaluate if their estimate of sales tax owed is close to the sales tax paid.
net sales
gross sales or net sales
gross sales
gross sales and net salesgross sales or net sales
Sales tax regulators ask retail (and other) companies for net sales to evaluate if their estimate of sales tax owed is close to the sales tax paid.
Sales tax is a tax on retail purchases. It is used to pay for nation and neighborhood finances objects like schools, roads and hearthplace departments. The Detailed Answer: Sales tax is a intake tax and is usually charged at the sale of merchandise from outlets to person purchasers.
A income tax is one which applies to the acquisition of products and offerings for purchasers and to the sale of products and offerings for businesses. It's a form of intake tax, that means it taxes human beings for spending money.
Sales Tax is a tax levied with the aid of using the Federal Government below the Sales Tax Act, 1990, on sale and deliver of products and on the products imported into Pakistan. Sales Tax on offerings is levied with the aid of using the Federal Government below The Islamabad Capital Territory (Tax on Services) Ordinance, 2001.
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accept more risk sell some of her bonds and use the proceeds to purchase stocks sell some of her stocks and place the proceeds in a savings account sell some of her stocks and use the proceeds to purchase bonds
To reduce risk, an investor has the option to sell some of their stocks and use the proceeds to purchase bonds. This strategy would be beneficial for an investor who is looking to reduce the amount of risk they are taking on in their portfolio.
By selling some of their stocks and investing the proceeds into bonds, the investor can diversify their portfolio and reduce the amount of volatility they are exposed to. Bonds tend to provide more consistent returns than stocks, which makes them a desirable asset for investors who are looking to reduce risk in their portfolio. Additionally, placing some of the proceeds from the stock sale into a savings account can also help reduce risk, as savings accounts typically provide a low-risk, low-return option for those looking to protect their assets.
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T/F. total quality management efforts usually focus on teams, and the principles of team building must be applied to make them work.
The majority of overall quality management initiatives center on teams, and in order for them to succeed, the following team building concepts must be used: True.
What is Quality management?The continual operation of a business, a product, or a service is made possible through quality management. Planning phase, quality assurance, quality control, and quality improvement are its four key parts. The goal of quality management is to improve both the quality of products and services as well as the methods utilized to do so.
In order to maintain a desired degree of perfection, all tasks and activities must be under the control of quality management. Quality management include developing and implementing a quality strategy, coming up with and executing quality assurance & planning, in addition to quality control and improvement. A big part of quality management is measuring, improving, and measuring again.
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The upper management of United American insurance company has passed along the new goal of improving customer service to the district managers. The district managers will set goals to be achieved over the next 6 to 24 months as part of ____ planning.
Multiple Choice
middle-level
operational
strategic
working-level
tactical
The upper management of United American insurance company has passed along the new goal of improving customer service to the district managers. The district managers will set goals to be achieved over the next 6 to 24 months as part of strategic planning.
Strategic planning is a procedure wherein an enterprise's leaders define their imaginative and prescient for the destiny and pick out their organization's desires and targets. The manner consists of establishing the series in which the ones dreams every day be found out in order that the business enterprise can attain its said vision.
Strategic planning is an company's procedure of defining its approach or route, and making decisions on allocating its assets every day obtain strategic desires. every day additionally enlarge to control mechanisms for steering the implementation of the strategy.
The motive of strategic planning is every day set average desires for your business and everyday broaden a plan day-to-day obtain them. It involves stepping back from your operations and asking in which your commercial enterprise is headed and what its priorities should everyday be.
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a company reports the following amounts at the end of the year: sales revenue$ 350,000 cost of goods sold235,000 net income50,000 compute the company's gross profit ratio.
The company's gross profit ratio that has sales revenue $350,000, cost of goods sold $235,000, and net income $50,000 at the end of the year is xxxxxxxx.
Gross profit ratio (Gross margin) is the difference between revenue (sales) and cost of goods sold, divided by revenue. Gross margin will be expressed in percentage value.
Now, let's calculate the company's gross profit ratio
Gross profit = Net sales - cost of goods sold
= $350,000 - $235,000
= $115,000
Gross profit ratio = Gross profit / net sales
= $115,000 / $350,000
= 0.329 (rounded
Gross profit ratio = 32.9%
Therefore, the company's gross profit ratio is 32.9%
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True or False: for most corporations, physical-distribution activities are usually the responsibility of the marketing department.
Physical distribution tasks are often handled by the marketing division of most organizations. True 2. A supply chain is a group of marketing companies that products travel through on their route from suppliers to end customers.
Within the distribution channel, what are the names of wholesalers and retailers?
These middlemen, also known as exporters, merchants, agents, and brokers, wholesalers, or financiers, generally enter into relatively long agreements with the manufacturer and make up the marketing channel, also known as the channel.
Is there a particular customer base that a business targets with its marketing initiatives?
A company's intended audience is the particular group of clients (which may include businesses or local customers) to whom it focuses its advertising strategies.
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level 4: gains from trade with absolute advantage having determined that you should specialize in fishing, find a trade that will make you and friday better off. recall that friday produces 350 calories of fish per hour or 3.5 logs of firewood per hour and to survive, he needs 7 logs and 3500 calories of fish. while you produce 500 calories or 4 logs per hour and to survive you must collect 32 logs and 2000 calories of fish.
Due of Friday's lower opportunity cost for 1 log, Friday must create logs whereas the other person must generate fish calories.
The amount of firewood generated by Friday in 12 hours is equal to 12 * 3.5, or 42 logs.
Energy is measured in calories. Calories in nutrition relate to the energy that humans obtain from the food and liquids they consume as well as the energy they expend when engaging in physical activity. On every food package, the nutritional information includes a list of calories. Many diet plans for losing weight include cutting calories. This MNT Knowledge Center article focuses on how the body uses energy and the calories included in food and beverages. MNT discusses the definition of a calorie, the daily caloric need for humans, and healthy ways to consume calories.
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In addition to stand-alone discussion boards, all of these sites include discussion boards as part of their features except:LinkedIn.
In addition to stand-alone discussion boards, all of these sites include discussion boards as part of their features except: LinkedIn.
LinkedIn is an American commercial enterprise and employment-orientated on-line service that operates via websites and cellular apps. released on may also five, 2003, the platform is usually used for professional networking and profession development, and allows activity seekers to submit their CVs and employers to put up jobs.
LinkedIn is the sector's biggest expert network at the net. you could use LinkedIn to find the proper process or internship, connect and enhance professional relationships, and analyze the abilities you need to achieve your career.
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River, Inc., stock has a beta of 1.1 and Forest, Inc., stock has a beta of 1.6. Which of the following statements is most accurate? According to CAPM, the expected rate of return will be higher for the stock of Forest, Inc., than that of River, Inc. The stock of River, Inc., has more total risk than Forest, Inc. The stock of Forest, Inc., has more total risk than that of River, Inc.
Investment risk can be calculated with the use of the Model of Capital Asset Pricing (CAPM). A stock will possess a beta value greater than one if it is risky than the market.
What purposes serves CAPM?Based on the cost of profitability and investment risk, predicted returns are determined using the capm model (CAPM). The general market return rate, the stock's beta value, and the danger rate are all required by the CAPM calculation.
What presumptions underlie CAPM?To make the complex and coupled correlation of Markowitz's theory simpler, CAPM makes the assumption that risk-free assets are available. The risk-free asset results in the MPT's curved efficient frontier and simplifies the CAPM's linear efficient frontier.
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refer to figure 19-6. this figure depicts labor demand and supply for the widget industry. the equilibrium market wage is $15. suppose a labor union forms and subsequently negotiates an hourly wage of $25.00. which of the following statements is true?
As a result of the given situation (D), the Labor hours demanded by the widget companies will decrease by 30 hours.
At the equilibrium wage, 60 hours of labor are required.
The required labor hour is equal to 30 at a wage of $20.
So, the number of required labor hours will drop by 30.
Supply and demand is an economic theory that describes how prices are set in a market in microeconomics. It asserts that, with everything else being equal, in a market where there is competition, the unit price for a certain commodity,
The interplay between supply and demand eventually balances out in accordance with the tenets of a market economy.
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Noelle, the owner of all of the shares of ClockCo, an S corporation, transfers her stock to Grayson on April 1. ClockCo reports a $70,000 NOL for the entire tax year, but only $10,000 of the loss occurs during January-March. Assume 365 days in a year. Round per day computations to five decimal places. Round final answers to the nearest dollar. Without a short-year election, how much of the loss is allocated to Noelle and how much is allocated to Grayson? Noelle's loss allocation: $ 17,452.0547 x Grayson's loss allocation: $ 17,500 x If the corporation makes the short-year election, how much of the loss is allocated to Grayson? $ 60,000
A company reports a net operating loss when its expenses are higher than its revenues. Net loss is another name for net operating loss.
The final line of the income statement shows the net operating loss.
Particulars: A $70,000 net operating loss (A) number of days (B) 91 total days (C)
How is net operating loss calculated?The net operating loss is calculated by subtracting itemized deductions from adjusted gross income on a business expense sheet. Net operating losses occur when the outcome is negative.
When you have a net operating loss, what happens?A person's net operating loss is the difference between their gross income and the deductions taken by the taxpayer, adjusted as follows: An NOL carryback or carryover from a previous tax year does not qualify for the NOL deduction. The amount of capital gains can only be deducted from both business and non-business capital losses.
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For each of the following (1) identify the type of account as an asset, liability, equity, revenue, or expense: (2) identify the normal balance of the account; and (3) select debit (Dr.) or credit (Cr.) to identify the kind of entry that would increase the account balance. Type of Account Liability Normal Balance increase (Dr. or Cr.) Credit Credit Account a. Accounts Payable b. Consulting Revenue c. Salaries Expense d. Utilities Expense e. Prepaid Rent f. Wages Payable 9. Notes Receivable h. Land i. Cash Legal Expense k Prepaid Insurance
For the given list of accounts the type of the account , kind of entry and the type of transactions are illustrated below.
Here we have given that
a. Accounts Payable
b. Consulting Revenue
c. Salaries Expense
d. Utilities Expense
e. Prepaid Rent
f. Wages Payable
Now, we have to classify the type of account and transaction and the kind of entry are listed as,
Given Type Kind of Type of
of account entry transaction
a. Accounts Payable Liability Debit Dr.
b. Consulting Revenue Assets Credit Cr.
c. Salaries Expense Liability Debit Dr.
d. Utilities Expense Liability Debit Dr.
e. Prepaid Rent Liability Debit Dr.
f. Wages Payable Liability Debit Dr.
As per the concept of accounting, the the term payable fall under the type of liability accounts and the revenues are fall under type of assets account.
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Nate received a state tax refund of $590 from his 2020 return in 2021. Nate's filing status was single, and his itemized deductions
were $16,850 on the 2020 return, of which $2,800 was state income taxes. What amount of Nate's state refund will be taxable on the
2021 return?
Select one:
O a. $0
b. $250
c. None of these
d. $2,800
e. $590
None of these amounts of Nate's state refund will be taxable on the 2021 return. The correct option is C.
How do you calculate itemized deductions?You can deduct what you paid in real estate taxes, personal property taxes, state and local income or sales taxes, mortgage interest, and disaster losses when you itemize your deductions. You can also count charitable contributions and a portion of the money you spent on health and dental care.
Every year, your refund is determined by subtracting your annual federal income tax from the amount of federal income tax withheld.
Thus, the ideal selection is option C.
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Decide whether the following statement makes sense (or is clearly true) or does not make sense (or is clearly false). Explain your reasoning.
I bought a fund advertised on the web that says it use a secret investment strategy to get an annual return twice that of stocks, with no risk at all.
a. The statement does make sense because this secret investment strategy must be a new financial planning strategy that does not incorporate the three traditional investment considerations: liquidity, risk, and return.
b. The statement does not make sense because investing in stocks is low-risk to get high returns, thus getting higher returns than stocks with this secret strategy must mean the fund advertised on the web is low-risk, not no risk.
c. The statement does make sense because the strategy indicates that the return is a predictable amount, thus the fund advertised on the web is a no-risk investment.
d. The statement does not make sense because investing in stocks is high-risk to get high returns, thus getting higher returns than stocks with this secret strategy must mean the fund advertised on the web is high-risk, not no risk.
The correct option is that d. The statement does not make sense because investing in stocks is high-risk to get high returns, thus getting higher returns than stocks with this secret strategy must mean the fund advertised on the web is high-risk, not no risk.
What is an investment strategy?An investment strategy is a plan created to assist lone investors in achieving their monetary and investment objectives. Your personal circumstances, such as your age, wealth, risk tolerance, and objectives, will have an impact on your investment strategy.
The investment strategy that enables you to reach your financial objectives is the best one. The most effective strategy will vary depending on the investor. For instance, momentum trading is for you if you want to make the most money quickly at the greatest risk. Alternatively, value stocks are probably preferable if you're making long-term plans.
The claim is illogical because stock investments require a high level of risk in order to generate high returns; therefore, using this hidden strategy to generate higher returns than stocks must entail a high level of risk, not zero, for the fund being promoted online.
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T/F. a financial manager makes recommendations to top executives regarding strategies for improving the financial strength of a firm.
It is true that a financial manager advises top executives on ways to strength a company's financial position.
What are some instances of strong finances?Financial strength includes the capacity to make money, adequate cash flow, financial know-how, and the ability to pay back investors. Since one of the key elements of a successful business is financial strength, business owners are concerned about it.
Which financial areas are strong and weak?Strengths: These are attributes that are advantageous to a company. For an economic Swot, this may refer to sizable cash reserves or a healthy monthly cash flow. Weaknesses: These are factors that work against a company.
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profitability ratios are used to: show the speed with which resources can be converted to cash measure of the firm's ability to pay its current liabilities determine how efficiently a company is being managed measure the degree and effect of a firm's use of borrowed funds on its operation determine how efficiently a company's manages its retained earnings
Using information at a single point in time, profitability ratios are a class of financial measurements that are used to evaluate a company's capacity to generate profits in relation to its revenue, operating costs, balance sheet assets, or shareholders' equity over time.
What profitability ratio should you use?Since most industries often regard 10% as the average and 20% as high or above average, consider aiming for profit ratios between 10% and 20% while keeping an eye on the industry average.
What does profitability analysis mean?Enterprise resource planning (ERP) has a functionality called profitability analysis that enables administrators to forecast a proposal's profitability or improve the profitability of an ongoing project.
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makayla has created software for automating the accounting process at abl manufacturing. she completed the software development, with testing done during development at individual stages. before putting the software into production, mary, who is in charge of the testing software, ran the application using tools and generated a report giving the various inputs and corresponding exceptions generated by the application.
Mary, who is in charge of the testing software, used the process of Fuzzing.
Fuzz testing or fuzzing is an automatic package testing technique that injects invalid, malformed, or sudden inputs into a system to reveal package defects and vulnerabilities. A fuzzing tool injects these inputs into the system and so monitors for exceptions like crashes or data escape.
Software development is the method of conceiving, specifying, designing, programming, documenting, testing, and bug fixing concerned in making and maintaining applications, frameworks, or different package parts. package itself is that the set of directions or programs that tell a laptop what to try and do. it's freelance of hardware and makes computers programmable.
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Makayla has created software for automating the accounting process at abl manufacturing. she completed the software development, with testing done during development at individual stages. before putting the software into production, mary, who is in charge of the testing software, ran the application using tools and generated a report giving the various inputs and corresponding exceptions generated by the application. What process did Mary use?
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the main reasons the demand for genetic counselors has increased over the past decade includes which of the following?
The demand for genetic counselors has increased over the past decade because of more knowledge about diseases that are genetically transmitted, create public awareness of the genetic basis of disease and improve technology for genetic testing.
Information about the potential effects of genetic diseases on you or your family is provided by genetic counseling. Your personal and family health history will be gathered by the genetic counselor or another medical expert. The probability that you or a member of your family has a genetic disorder can be estimated using this information. Using this data, the genetic counselor can assist you in determining whether a genetic test could be appropriate for you or a family member.
Your doctor may recommend genetic counseling based on the health history of you and your family. You may be referred for genetic counseling at several times throughout your life:
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an analyst has determined that the required return for an equity investment in shares of global partners is 10.5%. if the risk-free rate is 6% and global's beta is 1.2, the current market risk premium is %.
As per the CAPM equation
Expected return = Risk free rate + (Beta * Market risk premium)
Expected return = 10.5, Risk free rate = 6, Beta = 1.2
The above equation and solve for the market risk premium
Putting the given values in the above equation, we get,
10.5 = 6 + (1.2 * Market risk premium)
10.5 - 6 = (1.2 * Market risk premium)
4.5 = 1.2 * Market risk premium
Market risk premium = 4.5 / 1.2
market risk premium = 3.75
The market risk premium is the excess of, market return over the risk-free rate.
From the above calculation, the market risk premium is 3.75%
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Stocks offer an expected rate of return of 18%, with a standard deviation of 22%. Gold offers an
expected return of 10% with a standard deviation of 30%.
a. In light of the apparent inferiority of gold with respect to both mean return and volatility,
would anyone hold gold? If so, demonstrate graphically why one would do so.
b. Given the data above, reanswer ( a ) with the additional assumption that the correlation coefficient
between gold and stocks equals 1. Draw a graph illustrating why one would or would
not hold gold in one’s portfolio. Could this set of assumptions for expected returns, standard
deviations, and correlation represent an equilibrium for the security market?
Part a: Investors hold gold because it is not strongly correlated with other financial assets, so it offers the ability to diversify portfolio risks.
Part b: With lesser returns but a higher standard deviation is not a realistic equilibrium in security markets
Gold is a special asset class. At first glance, gold may seem to have substandard returns and extreme risks, but judged in a portfolio context, gold shines. Gold is not correlated strongly with assets like equities or bonds, so it offers these portfolios diversification.
Stocks offer an expected rate of return of 18%, with a standard deviation of 22%. Gold offers an expected return of 10%, with a standard deviation of 30%.
Part a:
Investors hold gold because it is not strongly correlated with other financial assets, so it offers the ability to diversify portfolio risks.
Part b:
The answer changes if the correlation between gold and equity becomes 1 as equities would have superior returns and risk characteristics.
The risk of the portfolio becomes dramatically less as zero correlation assets are added to the portfolio. An assumption of 1, with lesser returns but a higher standard deviation is not a realistic equilibrium in security markets
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calistoga produce estimates bad debt expense at 0.30% of credit sales. the company reported accounts receivable and allowance for uncollectible accounts of $473,000 and $1,610 respectively, at december 31, 2020. during 2021, calistoga's credit sales and collections were $327,000 and $307,000, respectively, and $1,810 in accounts receivable were written off. calistoga's final balance in its allowance for uncollectible accounts at december 31, 2021, is:
Calistoga's final balance in its allowance for uncollectible accounts at december 31, 2021, is $-3,236. Calistoga's bad debt expense is 0.30% of credit sales.
Calistoga's credit sales in 2021 were $327,000. Therefore, bad debt expense is 0.30% of $327,000, or $981.
At December 31, 2020, Calistoga's accounts receivable and allowance for uncollectible accounts were $473,000 and $1,610, respectively. During 2021, the company's collections were $307,000 and $1,810 was written off.
Therefore, the balance in Calistoga's allowance for uncollectible accounts at December 31, 2021 is $1,610 + $981 - $307,000 - $1,810 = $-3,236.
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