On January 1, 2017, Fisher Corporation purchased 40 percent (86,000 shares) of the common stock of Bowden, Inc. for $986,000 in cash and began to use the equity method for the investment. The price paid represented a $66,000 payment in excess of the book value of Fisher's share of Bowden's underlying net assets. Fisher was willing to make this extra payment because of a recently developed patent held by Bowden with a 15-year remaining life. All other assets were considered appropriately valued on Bowden's books.

Bowden declares and pays a $104,000 cash dividend to its stockholders each year on September 15. Bowden reported net income of $396,000 in 2017 and $354,000 in 2018. Each income figure was earned evenly throughout its respective year.

On July 1, 2018, Fisher sold 10 percent (21, 500 shares) of Bowden's outstanding shares for $328,000 in cash. Although it sold this interest, Fisher maintained the ability to significantly influence Bowden's decision-making process.

Prepare the journal entries for Fisher for the years of 2017 and 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to the nearest whole dollar.)

Answer:

The correct answer is letter "A": labor laws.

Explanation:

Labor laws are the set of legal rules employers must follow to promote an equalitarian job environment. The right to be free from discrimination, to work in a safe work frame, to be free from retaliation, and to have access to a fair wage are the basic rights employees must make respect.

Preconceived assumptions could lead to discriminating individuals because of certain features like race, religion, sex or political ideology. Thus, preconceived assumptions lead to managers breaking labor laws.

Answer:

A. How much capital do I need?

Explanation:

The question is incomplete with regards to the options.please refer below the complete question:

All of the following are questions an opportunity assessment plan might answer except:

A. How much capital do I need?

B. What market need does it fill?

C. What business skills do I have?

D. Can a patent be obtained?

Answer:

Many a times enterprises create too many disparate and unrelated data marts without much benefit. It can become a big hurdle to maintain.

Explanation:

A data mart is an Information technology structure or pattern specific to data warehouse environments.

Data mart is an element of data warehouse. It is used to retrieve data related to client-facing activities and is usually designed specifically for the needs of its users.

Based on the options given, the disadvantage of data mart is that many a times enterprises create too many disparate and unrelated data marts without much benefit. It can become a big hurdle to maintain.

It should be noted that statement that doesn't belong to advantages of a data warehouse over a data mart is

A data mart can be regarded as structure  which is been to data warehouse environments, and it act as avenue for retrieving client-facing data.

with data Mart there us usually  faster access of Data and easy use of it because it is specifically designed for the needs of its users.

Therefore,  one disadvantages of a data warehouse over a data mart is many a times enterprises create too many disparate and unrelated data marts without much benefit.

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The Times-Interest-Earned (TIE) ratio for Thomson Trucking is approximately 5.643. This means the company's operating earnings are about 5.643 times larger than its interest expenses.

The Times-Interest-Earned (TIE) ratio measures a company's ability to cover its interest expenses using its operating earnings. The formula for the TIE ratio is:

TIE Ratio = Earnings Before Interest and Taxes (EBIT) / Interest Expenses

We can use the given information to calculate the TIE ratio step by step:

1. Calculate Earnings Before Interest and Taxes (EBIT):

BEP Ratio = EBIT / Total Assets

EBIT = BEP Ratio * Total Assets

Given BEP Ratio = 18% (0.18)

Total Assets = $12 billion

EBIT = 0.18 * $12 billion

EBIT = $2.16 billion

2. Calculate Interest Expenses:

ROA = Net Income / Total Assets

Net Income = ROA * Total Assets

Given ROA = 4.25% (0.0425)

Total Assets = $12 billion

Net Income = 0.0425 * $12 billion

Net Income = $0.51 billion

Interest Expenses = Net Income * (1 - Tax Rate)

Interest Expenses = $0.51 billion * (1 - 0.25)

Interest Expenses = $0.3825 billion

3. Calculate TIE Ratio:

TIE Ratio = EBIT / Interest Expenses

TIE Ratio = $2.16 billion / $0.3825 billion

TIE Ratio ≈ 5.643

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To calculate the TIE ratio, we need additional information. However, we can still assess Thomson Trucking's financial performance using the BEP and ROA ratios.

To calculate the times-interest-earned (TIE) ratio, we need to use the following formula:
TIE = (EBIT / Interest Expense)

Given that we are not provided with the earnings before interest and taxes (EBIT) or the interest expense, we cannot directly calculate the TIE ratio.

However, we are provided with the basic earning power (BEP) ratio which is calculated as:
BEP = EBIT / Total Assets

And the return on assets (ROA) which is calculated as:
ROA = Net Income / Total Assets

Since the BEP and ROA ratios can provide insights into a company's profitability, it is still possible to assess Thomson Trucking's financial performance even without the TIE ratio.

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Answer:

For an organization to survive, it must exchange information with it's external environment. An organization has no control over it's external environment, hence, it as to use the information of it's external environment for planning.

Explanation:

Wells Fargo, was one of the most valued bank, that operated a successful open system, before the scandal became public. However, it could not survive it's complex external environment, as the scandal had damaged the reputation of the bank, which largely affected the bank's market share.

Final answer:

Wells Fargo effectively interacted with its external environment as an open system by adapting to economic variables and customer demands. However, the scandal revealed inadequacies in its function as a complex adaptive system, marked by a failure to internalize and adapt to ethical standards and regulatory compliance.

Explanation:

Organizations such as Wells Fargo interact with their external environment through open system and complex adaptive system frameworks. Open systems partake in mutual exchange with external environments and are characterized by adaptability and response to external changes. As a complex adaptive system, an organization demonstrates the capacity to evolve its internal structure and behaviors in reaction to the external environment, thereby showcasing resilience and flexibility in the face of systemic pressures and changes. Prior to the public scandal, Wells Fargo was effective as an open system in its ability to engage with and adapt to external economic variables and customer demands. However, its effectiveness as a complex adaptive system was ultimately compromised by internal dysfunctions, leading to the scandal's emergence. These dysfunctions demonstrate a failure in the system's ability to adequately adapt and evolve its internal processes and cultural norms to maintain ethical standards and regulatory compliance, which is critical for the long-term resilience and survival of a complex adaptive system.

Answer:

a. Cash Asset (Balance sheet, Statement of cash flow)

b. Expenses (Income Statement)

c. Noncash Assets (Balance sheet)

d. Contributed capital (Balance Sheet, Statement of stockholder's equity)

e. Cash outflow for capital expenditures (Statement of cash flow)

f. Retained earnings (Balance Sheet, Statement of stockholder's equity)

g. Cash inflow for stock issued (Statement of cash flow, Statement of stockholder's equity)

h. Cash outflow for dividends (Statement of cash flow, Statement of stockholder's equity)

i. Net income (Income statement, Statement of stockholder's equity, Statement of cash flow)

Explanation:

Balance sheet: This provides a statement of liabilities, assets, the business capital at any point in time. Its shows the difference between income and expenditure over a period of time.

Statement of Cash flows: This statement breaks down financial analysis into investing, operating and financing activities.

Statement of Stockholders' Equity: A finance document that is issued by a company as a part of the balance sheet. Also shows any increase or decrease in shareholder's equity for an accounting period.

Income Statement: This is a major financial statement that clearly shows how healthy an organization is performing over an accounting period.

Answer:

$218

Explanation:

Answer:

An increase of $54

Explanation:

Any increase in current assets will decrease in cash. On the other hand, any decrease in current assets will increase cash balance.

Inversely, any increase in current liabilities will increase cash and any decrease in current liabilities will decrease cash balance of the period.

Increase in inventories ($248)

Increase in accounts payable $186

Decrease in accounts receivable $139

Decrease in other current asset $61

Decrease in other current liabilities ($84)

Total change $54 - an increase in cash

Answer:

The correct answer is letter "D": Speed.

Explanation:

The speed at which companies perform their activities is vital and can take a big role in determining the profits or losses of the business. Firms must be one step ahead in their production process to make sure deadlines are met and to predict failures to solve the issues immediately minimizing the output damages.

Answer:

D. Speed

Explanation:

Procrastination destroys human personal life as well as business. It separates the serious-minded and hardworking from the slothful and lazy, it separates the successful from the failure and separates the winners from the losers

Answer:

PART 1: Wilson Trucking Company reported Net Income of $15,854  for the year ended December 31, 2017.

PART 2: As per the statement of changes in equity, K. Wilson Capital Account Balance as at December 31, 2017 is $190,124

* Please note that figures in brackets represent negative values.

Explanation:

PART 1    

                                           Wilson Trucking Company

                     Income Statement for the year ended December 31, 2017

Revenue

Trucking Fees                                                         $115,500  

Less Expenses:  

Depreciation expense of Trucks                                  $(26,043)

Salaries expense                                                          $(54,170)

Office supplies expense                                          $(9,500)

Repairs expense -Trucks                                          $(9,933)

Net Income                                                                 $15,854  

PART 2  

                                        Wilson Trucking Company

     Statement of changes in Equity for the year ended December 31, 2017

K. Wilson Capital Account Balance as at December 31, 2016  $193,270  

Add: Net Income for the year                                                          $15,854  

Less: K. Wilson withdrawals during the year                                  $(19,000)

K. Wilson Capital Account Balance as at December 31, 2017  $190,124  

To prepare the income statement, subtract the total expenses from the revenue to calculate the net income. For the statement of owner’s equity, start with the beginning balance of capital, add the net income, and subtract withdrawals to find the ending balance of Capital.

To prepare the income statement first you need to calculate the net income which is the total revenue minus total expenses. In this case, trucking fees earned ($115,500) is the revenue. The total expenses are the sum of all expenses which include salaries expense ($54,170), office supplies expense ($9,500), repairs expense - trucks ($9,933), and depreciation expense - trucks ($26,043). When you subtract the total expenses from the revenue, you get the net income.

For the statement of owner’s equity, you start with the beginning balance of K. Wilson, Capital ($193,270), then add the net income and subtract withdrawals made by K. Wilson ($19,000) within the year to reach the ending balance of K. Wilson, Capital.

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Answer:

Part A:

Labur Productivity:

For US=5.14,         LDC=1.35

Capital Productivity:

For US=1.72          LDC=4.31

Part B:(Multi factor productivity)

For US=1.29         LDC=1.03

Part C: (Raw material productivity)

For US=4.90        LDC=10.02

Explanation:

Part A:

Labur Productivity:

For US:

[tex]Partial Labor Productivity=\frac{Sale(units)}{Labour(hours} \\Partial Labor Productivity=\frac{100505}{19550} \\Partial Labor Productivity=5.14[/tex]

For LDC:

[tex]Partial Labor Productivity=\frac{Sale(units)}{Labour(hours} \\Partial Labor Productivity=\frac{19600}{14550} \\Partial Labor Productivity=1.35[/tex]

Capital Productivity:

For US:

[tex]Capital Productivity=\frac{Sale(units)}{Capital Equipment} \\Capital Productivity=\frac{100505}{58600}\\Capital Productivity=1.72[/tex]

For LDC:

[tex]Capital Productivity=\frac{Sale(units)}{Capital Equipment} \\Capital Productivity=\frac{19600}{4550}\\Capital Productivity=4.31[/tex]

Part B:

For US:

[tex]Multifactor Productivity=\frac{Sales(units)}{labour(Hours) + Capital Equipment(hours)}\\ Multifactor Productivity=\frac{100505}{19550+58600} \\Multifactor Productivity=1.29[/tex]

For LDC:

[tex]Multifactor Productivity=\frac{Sales(units)}{labour(Hours) + Capital Equipment(hours)}\\ Multifactor Productivity=\frac{19600}{14550+4550} \\Multifactor Productivity=1.03[/tex]

Part C:

For US:

[tex]Raw material productivity=\frac{Sales(Hour)}{Raw Material} \\ Raw material productivity=\frac{100505}{20500} \\ Raw material productivity=4.90[/tex]

ForLDC:

Converting Raw material FC into $ (1$=10FC)

Raw Material =19550/10=$1955

[tex]Raw material productivity=\frac{Sales(Hour)}{Raw Material} \\ Raw material productivity=\frac{19600}{1955} \\ Raw material productivity=10.02[/tex]

Answer:

Social media relates to all the technology that makes information sharing possible via the Internet. It is largely based on subject matter that users create and share.

Explanation:

Mass media approach: One-to-many

Personal contact approach: one-to-one.

Difference: Sellers are involved in mass media; buyers exchange information passively. Seller and buyer are both active on PC.

It is also the primary communication means used to meet the vast majority of the population. Newspapers, journals, radio, TV and the internet are the most prominent mass media channels.

Final answer:

The difference between the personal contact model and the mass media approach is the scale and nature of interaction. The personal contact model supports personalized, many-to-many communications, ideal for community building and personal expression online. In contrast, the mass media approach is one-to-many, aiming for broad reach with limited audience interaction.

Explanation:

The difference between the personal contact model of communicating on the Web and the mass media approach lies fundamentally in the scale and nature of interactions. The personal contact model, often facilitated by digital media, allows for a more personalized, many-to-many communication. This model enables individuals to share, interact, and develop personal identities within online spaces, serving as accessible points for personal or group expression. Examples include social media interactions, forums, and direct messaging, offering both a platform for individual voices and a space for niche communities to thrive.

Conversely, the mass media approach is a form of one-to-many communication where content is constructed by a relatively small group of media creators and broadcast to a broad audience through widely available channels such as television, radio, and traditional print media. This approach is characterized by its impersonal nature, aiming to reach as many people as possible, often for purposes like advertising, entertainment, or dissemination of news, with limited direct interaction between the content creators and the audience.

Thus, the personal contact model emphasizes interactive, many-to-many communications that foster personal connections and community building online, while the mass media approach focuses on one-to-many communications aiming for wide reach and influence.

The trade-off between having more now and having more later involves sacrificing current consumption to invest in capital goods, which can increase future production and consumption.

The trade-off between having more now and having more later is one central to economics, involving current consumption versus future wealth. It is characteristic of capital goods that they are not used up in the short run. A society can choose to sacrifice some quality of life now—fewer consumer goods—in order to build up its stock of capital goods. This will lead to an increase in production—and more consumer goods—later on. This is because capital goods, like machinery and factories, are used to produce consumer goods. By sacrificing immediate consumption and investing in these capital goods instead, a society can increase its future production capacity.

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The trade-off between immediate consumption and future benefits is a decision-making process where present luxuries are sacrificed to improve future living standards through investments in capital goods and human capital.

The trade-off between having more now and having more later involves decision-making where present consumption is sacrificed to enhance future production. It is characteristic of capital goods that they are not used up in the short run. A society can choose to forego some quality of life now—fewer consumer goods—in order to build up its stock of capital goods. This will lead to a higher standard of living—and more consumer goods—later on.

By investing in capital goods and education, which increases human capital, societies make a conscious choice to delay immediate gratification for a potentially more prosperous future. This concept highlights the importance of resource allocation between current consumption and future growth opportunities. For individuals, like college students, investing time and money in education can mean short-term sacrifices for the prospect of a higher income and thus greater consumption in the future.

Answer: The income tax expense $100,800, net income $252,000

Explanation:

To calculate net income

Income from continuing operation before income tax - income before tax-loss on discontinued operation

= 315,000 - 63,000

= 252,000

To calculate line item amount for income tax expense ,we use the formula

Income tax expense = Taxable income × tax rate

Taxable income = $252,000 , Tax rate = 40% ( 40 ÷ 100) = 0.4

= 252,000 × 0.4

= $100,800

Answer:

The correct answer is letter "B": direct.

Explanation:

Direct Costs for finished goods refer to the items and services directly used in production. Other costs such as rent and insurance for the production site are indirect costs. Examples of direct costs are direct labor and materials, manufacturing supplies or even commissions out of sales.

Answer:

                                                       $         $

Office Equipment                            5,000  

Office Supplies                           10,000  

Doug Equipment Company                    15,000  

                                                     15,000    15,000  

Explanation:

The entry for a company that purchased office equipment and office supplies on credit from Doug Equipment Company is:

Debit Office Equipment (or Office Supplies)

Credit Accounts Payable.

When a company purchases office equipment or supplies on credit, it acquires an asset and incurs a liability. The office equipment or office supplies account is debited to reflect the increase in assets. This entry records the cost of the equipment or supplies as an asset on the balance sheet, indicating that the company now owns these items.

Simultaneously, the accounts payable account is credited to record the liability incurred from purchasing the items on credit. This reflects the company's obligation to pay Doug Equipment Company in the future. The credit entry to accounts payable ensures that the liability is recognized and will be settled when payment is made. This accounting treatment maintains the balance in the company’s financial statements, accurately reflecting the acquisition of assets and the associated liability.

Answer:

The correct answer is 'Option (b)  

Explanation:    

Cole co. should compare between actual interest incurred on all the debts and the calculated interest on weighted average accumulated expenditure and lower of these two should be capitalized.

Actual interest incurred =$50,000+20,000 = $70,000

Calculated interest = $40,000

Lower of these two to be capitalized for the building during 2011= $40,000

Answer:

 $12,000  

Explanation:

The total product cost for artinez Manufacturing Inc. can be determined using the following formula:

Direct materials                                                             $7,000

Direct labor                                                                   $3,000

Manufacturing overhead                                             $2,000

Total product cost for last month                               $12,000                          

Answer:

managerial focus

Explanation:

hi ,i am user in indonesia.in indonesia i am haikalhama/expert

Answer:

Stockholder wealth growth should continuously be supposed of long term goal. It is in notice of shareholder or depositor that his prosperity continues to grow with smallest risk. Action which keeps stock at 20$ for numerous year and then increased to 40$ in year 5 is desirable as the wealth of the stockholder increases.

Sometime company capitalize in building dimensions so that it can yield more units of its product thus growing the sale. When the corporation is doing capex, stock price will remain stationary and as soon as its capex ends stock price will rise at fast pace.

The second course of action that keeps the stock at $20 for many years and then rises to $40 in the 5th year is better as the wealth of the stockholder maximizes at a steady rate.

Wealth Maximization is the concept of ​​increasing the value of a business in order to increase the number of shares held by shareholders.

The growth of shareholders' wealth should continue to be a long-term goal. It is up to the shareholder or investor to determine if his or her fortune will continue to grow at a very small risk.

Sometimes a company makes money by building size so that it can produce more units of its product and thus increase sales. When a company makes a capital expenditure the stock price will remain stagnant and as soon as the capital expenditure ends the stock price will rise sharply.

Thus, the second course of action is better as it slowly and steadily increases the value of stock price from $20 to $40 in 5 years.

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Answer:

$1,610.51 (in both calculation)

Explanation:

1. Using Math formula,

We know, Future value, FV = PV × [tex](1 + i)^{n}[/tex]

Given,

Present Value, PV = $1,000

Interest, i = 10% = 0.10

Number of periods, n = 5 years

Putting the values in the formula, we can get,

Future value, FV = PV × [tex](1 + i)^{n}[/tex]

FV = $1,000 × [tex](1 + 0.10)^{5}[/tex]

or, FV = $1,000 × 1.61051

Therefore, FV = $1,610.51

2. Using excel formula,

See the image below:

We have to use present value as negative so that the result should be used as positive.

Answer:=$1,610.51

Explanation:  

PV=$1,000

I=10%

N=5

Answer:

From the information, observe that there is a relationship between the fuel economy and engine size.

The regression model is,

Mpg = 36.25 – 3.867 Engine size

The residual is the difference between the actual value and predicted value.

Residual = y - ŷ

Here, y is the actual value and ŷ is the predicted value.

The car gets positive residual, if the actual value is greater than the predicted value.

Therefore, in this context, a certain car has a positive residual means that the actual mileage of that particular car is greater than the predicted mileage.

A positive residual in a regression model measuring fuel economy based on engine displacement means the car's actual fuel economy is better than predicted. This can be confirmed by a residual plot showing data points above the zero line. Residuals need to be random, and patterns may indicate model issues.

If a regression model is predicting the fuel economy of a car based on its engine displacement, a positive residual indicates that the actual fuel economy of the car is better than what the model predicted. In more technical terms, the residual is the difference between the observed value, which is the actual fuel economy, and the predicted value, given by the regression equation (ŷ = bo + b₁x).

The presence of a positive residual suggests that the car is more fuel-efficient than its engine displacement would suggest according to the model. This can be visualized in a residual plot, where a positive residual is represented by a data point above the horizontal line at zero, which denotes no deviation from the predicted value.

When analyzing a residual plot, it is important to ensure that there is no pattern indicating systematic errors. Residuals should appear randomly distributed around the zero line, with no clear trends or patterns. If a trend is observed, this may indicate an issue with the model's assumptions such as non-linearity or heteroscedasticity.

Explanation:

A. Since a Canadian employee can make two cars or 30 cars of wheat each year, a car's opportunity costs 15 cars of wheat. In the same way, the cost of a wheat bushel is one quarter of a vehicle. The cost of the opportunity is the mutual costs.

B. When all 10 million workers are producing two cars each, a total of 20 million cars is produced, which means that the production opportunities are intercepted vertically. For every 10 million employees produce 30 bushels of wheat each, the horizontal interception between output possibilities is a total of 300 million bushels. Although the trade is still the same between cars and wheat, development incentives are a straight line.

C. When Canada continues to import 10 million vehicles in Canada by the US, It will have to manufacture a minimum of 20 million cars. Thus Canada produces the production opportunities at the vertical dispatch. However Canada will be able to consume 200 million bushels of wheat and 10 million cars if its vehicles are 20 bushels of wheat per car. The offer should be accepted by Canada.

The operating cash flow for Pompeii, Inc. can be calculated by first determining earnings before tax, calculating the tax payment, and then using the formula OCF = (Sales - Costs) + Depreciation - Taxes. This results in an OCF of $25,662.50.

The question involves calculating the operating cash flow (OCF) for Pompeii, Inc. To determine OCF, we apply the following formula:

OCF = (Sales - Costs) + Depreciation - Taxes

First, we need to calculate the company's earnings before tax and the tax payment:

Now, we can calculate the operating cash flow (OCF):

Therefore, the operating cash flow for Pompeii, Inc. is $25,662.50.

Answer:

Explanation:

1. Calculate ending inventory        Rate per unit       Total cost

                         number of units        ($)                          ($)

Beg bal (April1)  450                         2.19                       985.50

Add:purchases  

April 20             410                            2.69                      1102.90

-----------------------------------------------------------------------------

Total goods

av for sale         860                                                          2088.40

Less: Sales:

During April       590

--------------------------------

Ending inventory 270

2. Cost of ending inventory = 270*2.19=$591.3

Answer:

C. termination of employment.

Explanation:

When someone repeatedly violates an organization policies, or has a severe violation, their contract is terminated.

Let's look at some National Football League(NFL) examples.

In case of repeated violations, you have Antonio Brown on the Raiders. He was released(fired) with no pay.

In case of a severe violation, you have the Patriots releasing(firing) Aaron Hernandez when he was arrested for the murder of Odin Lloyd.

In a daily job, if you arrive repeatedly late, or assault other employee, you are also going to be fired.

So the correct answer is:

C. termination of employment.

Answer:

(a) 3,250 units

(b) 5,750 units

Explanation:

(a) BEP(units):

= fixed cost ÷ contribution margin per unit

= $52,000  ÷ ($18 - $2)

= 3,250 units

Therefore, the 3,250 units must Warner sell per month to break even.

(b) BEP(units):  

= (fixed cost + target profit) ÷ contribution margin per unit

= ($52,000 + $40,000) ÷ $16

= 5,750 units

Therefore, the units must Warner sell per month to make an operating profit of $40,000 is 5,750 units.

Warner Clothing needs to sell 3,250 units per month to break even and 5,750 units per month to generate an operating profit of $40,000. These numbers were calculated using principles of break-even analysis in business.

In the context of business, break-even analysis is a tool to determine how many units of a product must be sold to cover the costs of production. To calculate the break-even point, we use the formula: Fixed Costs ÷ (Selling Price per Unit - Variable Cost per Unit). Given the values: Fixed Costs = $52,000, selling price per unit = $18, variable costs = $2, the calculation would be as follows: $52,000 ÷ ($18 - $2) = 3,250 units. Therefore, Warner Clothing must sell 3,250 baseball hats per month to break even.

To calculate the number of units needed to make a certain profit, you use the formula: (Fixed Costs + Desired Profit) ÷ (Selling Price per Unit - Variable Cost per unit). Thus, for Warner to make an operating profit of $40,000, the calculation is: ($52,000 + $40,000) ÷ ($18 - $2) = 5,750 units. In summary, Warner Clothing needs to sell 5,750 baseball hats per month to make a profit of $40,000.

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Answer:

B) the wages received for the fifth day of work.

Explanation:

Marginal benefit is the increment in benefit generated by an increase by one unit of output. In this situation, the marginal benefit is given by difference in wage of working five days a week from the wage of working four days a week. Therefore, the marginal benefit is the wage received for the fifth day of work.

The answer is alternative B)

Answer:

$3,100

Explanation:

Step 1: Draw up the Accounts Receivable Account

Opening Balance  $600          Allowance for Doubtful debt   $200

Sales                       $3,200       Cash Collected                        $3,100

                                                   Closing Balance                       $500

                                $3,800                                                         $3,800    

To calculate the cash collected from customers

first, add the debit side of the accounts receivable which is a sum of the opening balance and sales= 3,800

Secondly, add the figures in the credit side including allowance for doubtful debt and closing balance= $700

Thirdly, Subtract the lesser side from the greater, $3,800 - $700 = $3,100

$3,100 was cash collected from the customers in 2016

Answer and explanation:

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