Answer:
Debit to bad debts expense in the amount of $5,000
Explanation:
The computation of the bad debt expense is shown below:
= Credit sales × estimated percentage given
= $500,000 × 1%
= $5,000
The journal entries are also shown below; for better understanding
Bad debt expense A/c Dr $5,000
To Allowance for doubtful debts $5,000
(Being bad debt expense is recorded)
The other information which is given in the question is not relevant. Hence, ignored it
Answer:
A) price will increase and quantity increase.
Explanation:
An increase in demand means more customers are willing and can afford to buy a product. Holding the other factors constant, an increase in demand results in many potential buyers chasing very few goods. The competition for the few goods leads to an increase in their prices. The equilibrium point moves up the graph to a new higher position as a result of an increase in demand.
As per the law of supply, quantity supplied increases as prices rise. Profit motives drive all business establishments. As prices increase due to increased demand, suppliers will be motivated to supply more to take advantage of high prices.
<span>If Tiffany has been contributing to her Roth IRA for a long time, she has payed taxes as the money was deposited. Regardless of her tax bracket, the money has been allowed to accrue tax-free and she will pay no taxes on withdrawal after retirement.</span>
The best choice for Friedo and Mariam would be a Limited Liability Company.
It is very important to structure your new business correctly. If a business owner is worried about personal risk, it is best to set up the company as an LLC, short for Limited Liability Company. The LLC gives business owners the single taxation that you would have in a sole proprietorship, but limits the personal liability, similar to what you would see with a corporation.