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(Present Value Tables Required)You Have Been Awarded a Scholarship That

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(Present value tables required) You have been awarded a scholarship that will pay you $500 per semester at the end of each of the next 8 semesters that you earn a GPA of 3.5 or better.You are a very serious student and you anticipate receiving the scholarship every semester.Using a discount rate of 3% per semester,which of the following is the correct calculation for determining the present value of the scholarship?


Definitions:

Allowance for Doubtful Accounts

An estimation of the amount of accounts receivable that may not be collectible, used to create a more accurate report of net income.

Bad Debts Expense

An expense reported on the income statement, representing the estimated amount of receivables that will not be collected.

Uncollectible Accounts

Receivables that are recognized as losses after all attempts to collect the money owed have failed, indicating debts unlikely to be recovered.

Allowance for Doubtful Accounts

A contra-asset account that reduces the total receivables amount to reflect what is expected to be collectible.

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