Answer:
Debit to bad debt expense for $3,648
Explanation:
This is because the company needs to show the total amount in the Allowance for doubtful accounts as credit balance. It means that if for instance the balance today is $1,057 you'll need a new entry to adjust the balance with the bad debt.
It means that the entry must be a debit in bad debt expense for $3,648 while the corresponding credit goes to allowance for doubtful accounts.
When one does marketing research, he or she gathers important information that would help him decide whether the proposed product or service is suitable for the market. So when a firm like Dunkin' Donuts does marketing research, the first step that it should do would be to identify research objectives.
Answer:
<u>less profit per unit</u>
Explanation:
- If a customer normally orders 1,000 units, then total profit = $100-$60 * 1000 units = <u>$40,000.</u> (i.e we subtracted cost from selling price to determine profit per unit, and then multiply by the total unit ordered to get total profit)
- If you drop the price 20% out of $100 ($100 -
$80) for the order of 2000 units, then profit = $80-$60 * 2000 = <u>$40,000.</u> (i.e we reduced selling price by 20% and then substracted cost, $60 from selling price to determine profit per unit, and then multiply by the total unit ordered to get total profit)
Although the total profit is the same, we observe that the profit per unit is lesser on the larger order, which has a profit per unit of $20 ($80-$60), while the smaller order has $40 ($100-$60) per unit profit.
Traditionally, small businesses tended to be concentrated in the retail or retailing industry.
The retail industry involves a business that sells good or services to a consumer. The sell these items based on the demand of the good or service. Even today, the retail industry is growing fast and still one of the main focuses of small businesses.
Answer:
Option (b) is correct.
Option (b) is correct.
Explanation:
1. Pure Expectation Theory :
Each option must provide the same amount of cash at the end of 2 years, which implies that,
CF at the end of year 2 = CF at the end of year 1
[tex](1+0.0738)^{2} = (1+0.0492) (1+x)
[tex\]
Hence, x = 9.90
so the market's estimate of the one year Treasury rate one year from now it will be 9.90%
2. In case of maturity risk premium, the cash flow of two year treasury security will reduce, it will be:
= 7.38 - 0.40
= 6.98.
Hence, Treasury Rate will be as follows:
CF at the end of year 2 = CF at the end of year 1
[tex](1+0.0698)^{2} = (1 + 0.0492) (1 + x)[tex\]
x = 9.080%
