The lower the rate, the higher the PLF. The initial mortgage insurance premium (MIP) payable. This is significantly higher (2.5 percent of the propertyâs appraised value) for those who wish to withdraw 60 percent or more of the total made available under the reverse mortgage during the first year of the loan. Those who need less than 60 percent in those first 12 months pay just 0.5 percent.
Know what data you need. The average accounts receivable collection period can be calculated from the following equation: Period=DaysReceivablesTurnover{\displaystyle Period={\frac {Days}{ReceivablesTurnover}}}. In the equation, days refers to the number of days in the period being measures (usually a year or half of a year).
Accounts Receivable account. Credit sales = $500,000 Accounts receivable balance = $72,500Step 2: Compute estimated expense Step 2: Compute desired balance for the Allowance for Doubtful .0125 Ã $500,000 = $6,250 Accounts account .08 Ã $72,500 = $5,800Step 3: Make entry. Step 3: Computed estimated bad debt expense.