Yes worksheet e65part2 learningobjective0602analyze

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Unformatted text preview: te 28.22 ± 2% % Explanation: (Amount s av ed ÷ Amount paid) = Interes t rate for 40 day s . (3% ÷ 97% ) = 3.09% for 40 day s . Interes t rate for 40 day s × (365 day s ÷ 40 day s ) = Annual interes t rate 3.09% × (365 ÷ 40 day s ) = 28.22% 4. awar d: 0.14 out of 0.14 points E6-5 Part 2 2. If his bank c harges 15 perc ent interes t, s hould the c us tomer borrow from the bank s o that he c an tak e adv antage of the dis c ount? Yes Worksheet E6­5 Part 2 Learning Objective: 06­02 Analyze the impact of credit card sales, sales discounts, and sales returns on the amounts reported as net sales. E6-5 Part 2 2. If his bank c harges 15 perc ent interes t, s hould the c us tomer borrow from the bank s o that he c an tak e adv antage of the dis c ount? Yes Explanation: Yes , bec aus e the 15% rate c harged by the bank is les s than the 28.22% rate implic it in the dis c ount. The c ompany will earn 13.22% by doing s o (28.22% − 15% ). 5. awar d: 0.14 out of 0.14 points E6-15 Interpreting Bad Debt Disclosures LO4 Siemens is one of the world’s larges t elec tric al engineering and elec tronic s c ompanies . Headquartered in Germany , the c ompany has been in bus ines s for ov er 160 y ears and operates in 190 c ountries . In a rec ent annual report, it dis c los ed the following information c onc erning its allowanc e for doubtful ac c ounts (euros in millions denoted as €): Balanc e at Beginning of Period € 895 Charged to Cos ts and Ex pens es € 271 Amounts Written Off € (153) Balanc e at End of Period € 1,013 Required: 1. Rec ord s ummary journal entries related to the allowanc e for doubtful ac c ounts for the c urrent y ear. (Enter your answers in m illions of euros. Om it the "€" sign in your response.) General J ournal Bad debt expense Allowance for doubtful accounts Allowance for doubtful accounts Accounts receivable Worksheet Debit 271 153 E6­15 Interpreting Bad Debt Disclosures LO4 Credit 271 153 Learning Objective: 06­04 Estimate, report, and evaluate the effects of uncollectible accounts receivable (bad debts) on financial statements. E6-15 Interpreting Bad Debt Disclosures LO4 Siemens is one of the...
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This homework help was uploaded on 02/23/2014 for the course BUSE 30000 taught by Professor N/a during the Winter '12 term at UChicago.

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