Answer:
$11,750
Explanation:
The computation of bad debt is shown below:-
Bad debt expense = Estimated allowance for uncollectible at the year end - Existing balance in allowance for uncollectible account credit balance
= ($314,000 × 4%) - $810
= $12,560 - $810
= $11,750
Therefore for computing the bad debt expenses we simply applied the above formula.
Ya know what the gym did you put for the first week in the short drive through it
Answer:
The answer is e. growing
Explanation:
The reason international business will continue to grow is because no nation can meet all its needs by itself. There will always be importation and exportation. This is where Comparative Advantage comes in.
What is comparative advantage?
- Simply put, this is the ability of a company or an economy to produce and sell goods and services at a lower price than its competitors, and still realize a larger sales margin. This theory was introduced by the English political economist David Ricardo in 1817.
Another reason why international trade will continue to grow is because of Absolute Advantage.
- Absolute advantage refers to the ability of an economy or a company to produce more or better goods and services than its others.
Let us assume that country A cannot produce its own oil, but country B can. In this scenario, country B has Absolute advantage over country A, therefore country A will naturally import oil from country B regardless of whether there are trade restrictions between them. This is because country A must fulfill its oil needs whether it likes it or not.
Answer (a):
The inflation distorts the ratio as their are number of things that inflate their prices differently. The prices of the rice is increasing by 1%, wheat prices are growing by 2% and salaries expenses are increasing by 5%. This means there is no consistant increase in all the commodity prices. And this issue becomes very prominent after 3 years. Trend analysis becomes meaningless when we make technological advancements which gives us edge to control the costs of the operations and inflation does the same thing but in opposite direction. It increases the cost of different operations with different percentages.
Answer (b):
Both balance sheet and income statement items would be affected because these are monetary values that would be inflated over time which will blurr the image of the entity.
