The gross receivables not expected to be collected is called a bad debt. There are two approaches of computing the bad debt. 1. A direct write-off...Become a member and unlock all Study Answers Start today. Try it now Create an account Ask a question Our experts can answer your...
2. Compute gross pay After you collect time cards from applicable employees, calculate each employee’s gross pay, which includes any overtime wages. If you use payroll software, the software handles this step for you (including overtime calculations). For hourly employees, you can calculate ...
How do you compute a selling price if you know the cost and the required gross margin? Author: Harold Averkamp, CPA, MBA Definition of Selling Price A selling price is the amount that a customer will pay to buy a product. If a retailer wants to earn a positive gross margin (or gross...
compute the output VAT by multiplying the VAT-able sales by the current VAT rate of 12%. Deduct input VAT from the output VAT, which is the amount of VAT paid on purchases and expenses related to the business. Finally, subtract the input VAT from the output VAT to compute your taxable ...
How are job costing and process costing related to product costing? Compute the amount recorded as the cost of a new machine given the following payments related to its purchase: gross purchase price, $700,000; sales tax, $49,000; purchase discount taken, $21,000; freight cost...
Compute your taxable income. Based on the taxable income, refer to the tax table for how much tax you’ll need to pay. Formulas for Taxable Income Itemized Deduction Taxable Income = Gross Sales - Gross Purchases Optional Standard Deduction ...
While the wealthy are given many tax breaks, one of the most significant is that they do not have to pay a sales tax when buying stocks. When regular wage-earners go out and purchase something- whether a can of beer or a new car- they are taxed on their purchases, but because the ...
To compute overtime pay , look at this example and follow these steps. Say, Dave is an hourly worker who earns $13 per hour. For this week, Dave has worked a total of 50 hours. How much do you need to pay him, including overtime? 1. First, you need to get the total ...
then works down to computenet incomeand eventuallyearnings per share (EPS). In each line, the income statement does not differentiate between cash and non-cash receipts (sales in cash vs. sales on credit) or cash vs. non-cash payments/disbursements (purchases in cash vs. purchases on credit...
Investors often look torate of return (RoR)calculations to compute the growth rate of their portfolios or investments. While these generally follow the formulae for growth rate or CAGR, investors may wish to also know their real or after-tax rate of return. Thus, growth rates for investors w...