b. Supplier B
c. Supplier C
d. Cannot be determined
Answer:
Using Total Cost Analysis, it will be more cost-effective to use;
b. Supplier B
Explanation:
Total cost of ownership (TCO) can be defined as the total cost of an asset including the purchase cost and cost of operation of the asset. Assessing the TCO takes a bigger picture analysis of the overall cost of an asset. Most people usually don't consider the operating costs of an asset. This can prove detrimental in the long run when one starts going through unaccounted operation expenses. Unforeseen expenditure can lead to poor credit scores since one did not prepare for them.
When buying an asset, it is imperative to consider the sort-term and long-term costs. The short-term costs are the immediate costs that are often clearly identified in the initial stages. The short-term costs are purchase and transportation costs. The long-term costs are costs that will be incurred with time, over the life of an asset. Examples of long-term costs are; depreciation costs and operations costs.
In our case above, the best option would be Supplier B since it's total cost of ownership is cheaper compared to Supplier A and Supplier C.
Answer:
Banks will be able to give out more loans
Explanation:
The Fed demands banks to maintain a percentage of their deposits as reserves. Reserves are meant to stay within the bank's strongroom to cater for unexpected withdrawals. The banks cannot loan out that money.
Should the Fed lower the reserve requirements, the banks will have more money lend. The proposition of deposits available to issue out as loans will increase.
The Fed influences the level of reserves to direct economic growth. Should the economy be slowing down, the Fed discourages the banks from holding high levels of reserves. Holding low reserves encourages banks to lend to households and businesses, which stimulates economic growth.
b. buying government securities.
c. lowering the discount rate.
d. announcing that it anticipates adopting an easy money policy. Please select the best answer from the choices provided A B C D
All of the following actions by the Fed would promote an easy money policy except for lowering the discount rate. The correct option is C.
The Federal Reserve System has been assigned a dual mandate: to pursue both maximum employment and price stability. It accomplishes this through employing a number of policy instruments to regulate financial circumstances in order to stimulate progress toward its dual mission objectives—in other words, by implementing monetary policy.
The Fed's major instruments are interest rate policy and open market operations. The Fed can also adjust commercial banks' statutory reserve requirements or act as a lender of last resort to rescue failing banks, among other less usual options.
Thus, the ideal selection is option C.
Learn more about The Federal Reserve System here:
#SPJ2
Answer:
'Bad debts write off' AND 'Recovery of Bad debts written off'
Explanation:
The Journal entry to write off a bad account affects only balance sheet accounts:
a debit to Allowance for Doubtful Accounts and a credit to Accounts Receivable.
No expense or loss is reported on the income statement because this write-off is "covered" under the earlier adjusting entries for estimated bad debts expense.
HOWEVER in scenario 2 where transaction involves a cashflow, it is a bad debt recovered transaction because upon recovery of bad debt previously written off
a debit to CASH and credit to Bad debts recovered account
Answer:
The first transaction should be to write-off of an uncollectible account (or bad debt), while the second transaction refers to the collection of a previously written-off bad debt.
Explanation:
The journal entry to record the write-off of an uncollectible account:
Dr Bad debt expense
Cr Allowance for uncollectible accounts
Allowance for uncollectible accounts is a contra asset account that reduces accounts receivable.
The journal entries to record the collection of a bad debt:
Dr Accounts receivable
Cr Bad debts expense
Dr Cash
Cr Accounts receivable
The collection of the previously written off bad debt increases cash flows.
Answer:
1. Age group = A
Amount of Accounts Receivable = B
Estimated % uncollectible = C
Estimated Amount Uncollectible = D
A B C D(B*C)
Not yet due $270,000 5% $13,500
1-45 days $37,500 10% $3,750
Over 45 days $15,000 15% $2,250
Estimated amount required in Allowance $19,500
for Doubtful Debts (Credit Balance)
Current Balance in Allowance for $67,500
Doubtful Debts (Debit Balance)
Required charge to Bad debts Expense $87,000
for the year
Thus, the Estimated 12/31/2021 balance for Dhaliwal’s allowance for uncollectible accounts (Credit Balance).
2. Journal Entry
Date Accounts and Explanation Debit Credit
Dec. 31 Bad debts Expense $87,000
Allowance for doubtful accounts $87,000
(To record the estimated bad debts)