Answer: $76900
Explanation:
The following information can be deduced from the question:
Accounts receivable = $1,865,000
Allowance for doubtful debts = $35000
Estimated bad debt = 6% × $1,865,000 = $111900
The amount of bad debt expense that the company will record will be:
= Estimated bad debt - Allowance for doubtful debts
= $111900 - $35000
= $76900
Answer:
As competition increases, traders must offer certain advantage to their clients, e.g. lower prices, credit sales, longer payment terms, etc., which end up benefiting their clients, and also traders will be willing to relinquish some of their gains to keep existing clients.
This is exactly the same thing that occurs in a given market when the number of suppliers increases, decreasing the equilibrium price and increasing consumer surplus.
Answer:
D)machine hours
Explanation:
It should be noted that department that is capital-intensive most likely would use a predetermined departmental overhead rate based on
machine hours.
A machine-hour can be regarded as measurement that is been used in applying factory overhead to manufactured goods. It's application is usually found in machine-intensive environments, environment whereby the amount of time that is expelled on processing by a machine is been regarded as largest activity that overhead allocations can be said to have based upon. Machine hour rate can be gotten by making division of the total running expenses of a machine by estimated number of hours for the machine to work at a specific period
Answer:
a. The director is wrong: the lurking variable here is the severity of the blizzard. A more severe blizzard calls for more plows and keeps people at home, where they are more likely to make online purchases.
Explanation:
The director is correlating the number of snow plows on the road with the amount of online purchases - the <em>correlation </em>is high, but it doesn't mean that the increase on online purchases is <em>caused </em>by the number of snow plows on the road.
The question is: why would the number of snow plows on the road increase in the first place? Snow plows are sent out according to the amount of snow that has fallen, which means that the <em>lurking variable </em>that explains the increase in the number of snow plows and the amount of online purchases, is the severity of the blizzard in terms of how much snow has fallen. When the weather outside is too harsh or dangerous for people to go out, then it is most likely that they prefer online purchases. If the director were to analyze the correlation between the severity of the blizzard and the amount of online purchases, he would find a high correlation as well and in this case it would be the variable that actually explains the behavior of the consumers.
Remember that a lurking variable is the non-controlled variable that affects both the dependent and independent variables. In this case, there is nothing that the director can do about the severity of the blizzard besides perhaps increasing the stock whenever the severe blizzard season rolls around.
Key infrastructure challenges to consider when entering a foreign market include:
transportation, communication, and energy
