Crimson inc. recorded credit sales of $779,000, of which $560,000 is not yet due, $120,000 is past due for up to 180 days, and $99,000 is past due for more than 180 days. under the aging of receivables method, crimson inc. expects it will not collect 1% of the amount not yet due, 16% of the amount past due for up to 180 days, and 20% of the amount past due for more than 180 days. the allowance account had a debit balance of $2,600 before adjustment. after adjusting for bad debt expense, what is the ending balance of the allowance account?
a. $60,240
b. $77,040
c. $73,140
d. $28,500

$47,200

Explanation:

Accounts receivable not yet due = $560,000

Bad Debts for accounts receivable not yet due:

= $560,000 × 0.01

= $5,600.

Accounts receivable due for up-to 180 days = $120,000

Bad Debts for accounts receivable due for up-to 180 days:

= $120,000 × 0.16

= $19,200.

Accounts receivable due for more than 180 days = $99,000

Bad Debts for accounts receivable due for more than 180 days:

= $99,000 × 0.20

= $19,800

Ending balance of Allowance account:

= Debit Balance of allowance account + $5,600 + $19,200 + $19,800

= $2,600 + $5,600 + $19,200 + $19,800

= $47,200

answer; ( prices are sticky);

the investment was $14,174.196

explanation:

a lump sum means that the father of the example made one deposit and leave it be.

we need to know the value of a capital that generated at 4.05% per year during 28 years the sum of $48,613.24

now clearing the formula to solve for capital we got:

and we reach the answer investment = $14,174.20