Use the following information about Ringo Corporation to answer the next four questions The Accounts Receivable balance for Ringo Corporation is $200,000 at May 31, 2020. Before calculating and recording May 2020 bad debt expense, the Allowance for Doubtful Accounts has a debit balance of $9,800. Net sales for the month are $1,160,000. An aging of accounts receivable results in a $14,000 estimate for the Allowance for Doubtful Accounts as of May 31, 2020. In the past several years, 2% of net sales have proven uncollectible. 1. If Ringo uses the analysis of receivables method, Bad Debt Expense on the May 2020 Income Statement will be:. a $23.800 b. $23,200. c. $14,000 d. $13,400.

Suppose that a major city’s main thoroughfare, which is also an interstate highway, will be completely closed to traffic for two years, from january 2014 to december 2015, for reconstruction at a cost of $535 million. if the construction company were to keep the highway open for traffic during construction, the highway reconstruction project would take much longer and be more expensive. suppose that construction would take four years if the highway were kept open, at a total cost of $800 million. the state department of transportation had to make its decision in 2014, one year before the start of construction (so that the first payment was one year away). so the department of transportation had the following choices: (i) close the highway during construction, at an annual cost of $267.5 million per year for two years. (ii) keep the highway open during construction, at an annual cost of $200 million per year for four years. now suppose the interest rate is 80%. calculate the present value of the costs incurred under each plan.