1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
garik1379 [7]
3 years ago
11

If the government removes a tax on sellers of a good and imposes the same tax on buyers of the good, then the price paid by buye

rs will:A) increase and the price received by sellers will increase. B) increase and the price received by sellers will not change. C) not change and the price received by sellers will increase. D) not change and the price received by sellers will not change.
Business
1 answer:
svetoff [14.1K]3 years ago
4 0

Answer:

D) not change and the price received by sellers will not change

Explanation:

If the government removes a tax on sellers of a good and imposes the same tax on buyers of the good, the net amount sellers receive doesn't change. The quantity of goods that are sold also remains the same.

So, price paid by buyers will not change and the price received by sellers will also not change

You might be interested in
Oriole Company reports the following financial information before adjustments. - Dr. Cr. Accounts Receivable $130,100 Allowance
fgiga [73]

Answer:

(a) 4% of accounts receivable

  • Oriole Company estimates bad debts at (a) 4% of accounts receivable  

Dr Bad Debt Expense $ 35,001  

Cr Allowance for Uncollectible Accounts  $ 35,001

  • (b) 4% of accounts receivable but Allowance for Doubtful Accounts had a $1,490 debit balance.

Dr Bad Debt Expense $ 39,801  

Cr Allowance for Uncollectible Accounts  $ 39,801

Explanation:

Initial Balance  

Dr Accounts Receivable   $ 130,100

Cr Allowance for Uncollectible Accounts  $ 3,310

Sales Revenue (all on credit)  

Dr Accounts Receivable  $ 880,500  

Cr Sales  $ 880,500

Sales Returns and Allowances    

Dr Sales Returns and Allowances $ 52,830  

Cr Accounts Receivable   $ 52,830

Oriole Company estimates bad debts at (a) 4% of accounts receivable  

Dr Bad Debt Expense $ 35,001  

Cr Allowance for Uncollectible Accounts  $ 35,001

To register the adjustment of 4% of accounts receivables it's necessary considerate the values previously recorded in the account.

It means, CREDIT Balance $3,310 and to register the difference.

4% of accounts receivable but Allowance for Doubtful Accounts had a $1,490 debit balance.  

Dr Allowance for Uncollectible Accounts  $ 1,490

Dr Bad Debt Expense $ 39,801  

Cr Allowance for Uncollectible Accounts  $ 39,801

If the company applies the allowance method, it means that the account Allowance for Uncollectible Accounts must show as balance the % of accounts receivables as CREDIT.  

Because the company has a debit balance in that account it's necessary to register an entry that compensate the DEBIT value and reflect A CREDIT estimated as % of account receivable.  

FINAL Balance  

Dr Accounts Receivable  $ 957,770  

Cr Allowance for Uncollectible Accounts  $ 38,311

Bad accounts are those credits granted by the company and there is no possibility of being charged.

When customers buy products on credits but the company cannot collect the debt, then it's necessary to cancel the unpaid invoice as uncollectible."

One way is to directly cancel bad debts at the time it was decided that the credit is bad, the total amount reported as bad debt expenses negatively affect the income statement and the accounts receivable are reduced by the same amount, less assets

The other way is to determine a percentage of the total amount of accounts receivable as bad debts, there are many ways to analyze accounts receivable and calculate the value of bad debts.

When the company has the percentage of uncollectible accounts, the required journal entry is Bad Expenses (debit) with Reserve for Bad Accounts (credit)

At the time of cancellation, since the expenses were recognized before, we only use the Allowance for Uncollectible Accounts (Debit)  with accounts receivable (credit), with this we are recognizing the bad credit of the company.

7 0
3 years ago
Bradford Services Inc. (BSI) is considering a project that has a cost of $10 million and an expected life of 3 years. There is a
balandron [24]

Answer:

Expected Net Cash Flow = $3.8 million

Net Present Value (NPV) = $1.0492 million

Explanation:

Given Cash outflow = $10 million

Provided cash inflows as follows:

Particulars           Good condition         Moderate condition        Bad Condition

Probability                  30%                               40%                                  30%

Cash flow                $9 million                     $4 million                       $1 million

Average expected cash flow each year = ($9 million X 30 %) + ($4 million X 40%) + ($1 million X 30%) = $2.7 million + $1.6 million + $0.3 million = $4.6 million

Three year expected cash flow = ($4.6 million each year X 3) - $10 million = $13.8 million - $10 million = $3.8 million

While calculating NPV we will use Present Value Annuity Factor (PVAF) @12% for 3 years = \frac{1}{(1 + 0.12){^1}} + \frac{1}{(1 + 0.12){^2}} + \frac{1}{(1 + 0.12){^3}} = 2.402

NPV = PV of inflows - PV of Outflows = $4.6 million X 2.402 - $10 million = $11.0492 million - $10 million = $1.0492 million

Expected Net Cash Flow = $3.8 million

Net Present Value (NPV) = $1.0492 million

3 0
3 years ago
Wendell’s Donut Shoppe is investigating the purchase of a new $40,000 donut-making machine. The new machine would permit the com
Komok [63]

<u>Solution and Explanation:</u>

<u> Answer:1</u> The total annual cash inflows associated with the new machine for capital budgeting purposes is:

=\$ 5200+(2000 * \$ 2.40 \text { per dozen })

=$10000

<u>Answer:2 </u>The internal rate of return promised by the new machine to the nearest whole percent is:

Particulars  Year  Amount ($)

Cash outflow  0  -40000

Cash inflow  1  10000

                2  10000

               3  10000

                4  10000

               5  10000

              6  10000

IRR   13%

=13% using IRR function in excel.

<u>Answer:3</u> IRR=17%

with salvage value

Particulars  Year  Amount ($)

Cash outflow  0  -40000

Cash inflow  1  10000

                 2  10000

                3  10000

               4  10000

                5  10000

              6  22000

IRR   17%

using IRR function in excel.

5 0
3 years ago
What is the typical rate of overtime pay?
Monica [59]
Overtime pay is the amount overtime paid to each employee in a pay period.
How its calculated: Hourly pay rate x 1.5 x overtime hours worked.
6 0
3 years ago
Read 2 more answers
Your grandparents put $10,200 into an account so that you would have spending money in college. You put the money into an accoun
expeople1 [14]

Answer:

Monthly withdrawal = $ 231.17 per month

Explanation:

Below is the calculation:

Deposit amount in the bank = $10200

Interest rate earned by the deposit = 4.19%

Monthly interest rate = 4.19% / 12 = 0.34917%

Number of periods = 4 years x 12 = 48

Amount in the account = Monthly withdrawal x (P/A, 0.34917%, 48)

10200 = Monthly withdrawal x 44.12246

Monthly withdrawal = 10200/44.12246

Monthly withdrawal = $ 231.17 per month

5 0
3 years ago
Other questions:
  • Marco and Lisette love to play​ darts, but both suffer from carpal tunnel syndrome due to excessive play. They are considering h
    15·1 answer
  • An example of a product that would be sold through niche marketing is
    10·1 answer
  • A study of about 1,800 U.S. colleges and universities resulted in the demand equation q = 9,900 − 2p, where q is the enrollment
    9·1 answer
  • The overhead volume variance relates only to
    10·1 answer
  • Rug Designs Inc, a manufacturer of large area rugs, markets its products throughout the United States using a network of regiona
    12·1 answer
  • Assume that you are part of the accounting team for Logan Digital. The company currently expects to sell 362 units for total rev
    5·1 answer
  • A free enterprise system refers to: a. Economic assets that are privately owned and exchanged in an open market. b. Property own
    9·1 answer
  • Leftown is a former guest who owes the Munchies Restaurant $750 for a banquet. Restaurant managers have determined that this deb
    11·1 answer
  • I need help!!!! Someone please lemme know what I need to do!!!!
    14·1 answer
  • Joey moved from NY to NV because he was transferred by his employer, Big Casinos Inc. His employer reimbursed his moving expense
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!