Let’s consider spot exchange rate between dollar and pound as $1.5 = £1. If the interest rate of United States is 5% per annum and of United Kingdom is 8% per annum, what should be the forward exchange rate after 1-year time if the interest rate parity holds true?

At the end of the current year, accounts receivable has a balance of $550,000; allowance for doubtful accounts has a credit balance of $5,500; and sales for the year total $2,500,000. an analysis of receivables estimates uncollectible receivables as $25,000. determine the net realizable value of accounts receivable after adjustment. (hint: determine the amount of the adjusting entry for bad debt expense and the adjusted balance of allowance of doubtful accounts.)