Neal Selznick bought a new van for $10,000. Neal put down $1,000 and paid $275 monthly for 40 months. What is the total amount of finance charge that Neal paid at the end of 40 months?
What will be an ideal response?
$2,000
$275 × 40 - ($10,000 - $1,000) = $11,000 - $9,000 = $2,000.
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Annual financial statements are subjected to a full audit by an independent auditor
Indicate whether the statement is true or false
Which sentence is better expressed?
A) Matthew, too, will attend Merced College in the fall. B) Matthew too will attend Merced College in the fall.
The Links Company uses the percent of sales method of accounting for uncollectible accounts receivable. During the current year, the following transactions occurred:Sept 7Links Company determined that the $8,000 account receivable of the Rainier Company was uncollectible, and wrote it off.Oct 15Links Company determined that the $3,500 account receivable of the Olympic Company was uncollectible and wrote it off.Nov 9Rainier Company paid $6,000 of the amount owed to the LinksCompany. Links Company does not expect further collections from the Rainier Company.Dec 31Links Company estimates that 1% of its $1,900,000 of creditsales would be uncollectible.1. Prepare the general journal entries to record these transactions.2. If the balance of the allowance for uncollectible accounts was a $4,000
credit on January 1 of the current year, determine the balance of the allowance for uncollectible accounts at December 31 of the current year. Assume that the transactions above are the only transactions affecting the allowance for uncollectible accounts during the year. What will be an ideal response?
Which of the following is not an objective of financial reporting by state and local governments?
A. To assist in determining compliance with finance-related laws, rules, and regulations. B. To assist financial report users in comparing actual financial results with the legally adopted budget. C. To assist users in assessing financial condition and results of operations. D. To assist users in assessing the adequacy of systems and controls.